JAKARTA (TheInsiderStories) - Indonesia government has launched five toll projects worth Rp50.8 trillion (US$3.82 billion) that will be developed through Public Private Partners scheme on Tuesday. All the projects with the length 311.32 kilometers (km) is expected to be completed by 2019.
The five projects are Jakarta - Cikampek II elevated along 36.4 km with total investment Rp14.7 trillion, Krian - Legundi - Bunder - Manyar 38.2 km (Rp 9 trillion), Cileunyi-Sumedang - Dawu (Cisundawu) with a length of 60.72 km that will be connected with the port of Cirebon (Rp8.2 trillion), Serang - Panimbang along 33 km, which is part of the development of Tanjung Lesung (RpRp5.4 trillion) and Kuala Tanjung Mas - Tebing Tinggi - Parapat 143 km (Rp13.4 trillion).
“The construction of these projects will stimulate the economic activities in these areas. The progress of highway projects with Government Cooperation Enterprises (KPBU) schemes is in line with the direction of the President to increase the involvement of the private sector’s role as the government’s State Budget is limited. The toll road projects require total investment of Rp4,800 trillion,” Minister for Economic Affairs and Chairman of Committee Acceleration of Infrastructure Development Priorities (KPPIP) Darmin Nasution said in a speech at the signing of the agreement at his office.
Finance Minister Sri Mulyani Indrawati added four of the toll projects are covered by government guarantee to provide the security and comfort for the enterprises to run the projects. She continued, the government supports are not only come from the State Budget but also from PT Penjamin Infrastruktur Indonesia and the Institute of Asset Management of State Assets (LMAN) in a form of guaranteeing the security and comfort to start the construction of the projects.
“Toll road projects implementation is a form of synergy between the Ministry of Finance and Ministry Public Works & Public Housing (PWPH),” she said.
In the last 2 years, the government has injected capital for state-owned enterprises (SOEs) Rp65.8 trillion and Rp50.4 trillion to carry out the infrastructure projects. On the same time, Minister of PWPH Basuki Hadimuljono said, Toll Road Regulatory Agency (BPJT) already paid Rp14.5 trillion from total funds Rp34 trillion for land acquisition. (*)