PT Citra Marga Nusaphala Tbk (IDX: CMNP) plans to build second Harbour Road Road with an investment of Rp4 trillion (US$285.71 million) in the second quarter of next year - Photo: Special.

JAKARTA (TheInsiderStories)PT Citra Marga Nusaphala Tbk (IDX: CMNP) plans to build second Harbour Road Road with an investment of Rp4 trillion (US$285.71 million) in the second quarter of next year. The investment is part of next year’s capital expenditure of Rp6.35 trillion, said the management to the media on Thursday (12/19).

CMNP’s Director Djoko Sapto said that the 9.67 km toll roads connected Pluit to Ancol will operate in 2022 with the total investment of Rp13.55 trillion.

To date, the firm has obtained a license to build the project, so it will begin the construction next year. While, in the construction process, the firm will engage PT Wijaya Karya Tbk (IDX: WIKA).

Meanwhile, CMNP’s Independent Director Muhdhor Nurohman said that besides to invest in the building of Harbour Road, the capital expenditure will be used to accomplish Depok-Antasari (Desari) and Cileunyi-Sumedang-Dawuan (Cisumdawu) toll road. While, the source capital expenditure will be derived from several instruments such as contractor pre-financing (CPF), bank loan and internal cash.

While the Indonesian government targetted to build 3,000 kilometers (km) new toll roads across the archipelago. To reach those targets, the government has prepared funding of Rp430 trillion in the 2019 State Budget.

This year the nation targets to spend IDR 420 trillion to build the infrastructure projects, including toll road. President Joko Widodo said, in his first term, the country aims to build 720 km of toll road from five years ago 780 km, or in total will manage 1,500 kilometers until end of 2019.

“In the next five years, we hope that we already have 5,000 km of toll roads. Therefore, we are still focusing on infrastructure development in addition to human resource development, “said the president at the Infrastructure Week in Jakarta.

Indonesia’s Toll Road Regulatory Agency offered seventh toll road projects with an investment value of Rp151.13 trillion to be auctioned until December 2019. The projects have length 575 km, the agency announced on Friday (07/19).

The agency’s head Danang Parikesit said six of the seven projects to be auctioned were proposals or initiatives from business entities. He added that currently there is one project which is in the tender process, namely the Balikpapan – Penajam Paser Utara toll road bridge along 7.35 km.

“The project is a business entity initiative with the right to equalize the offer or right to match at PT Tol Teluk Balikpapan,” he said. PT Tol Teluk Balikpapan is a subsidiary of PT Waskita Toll Road (WTR). With the right to equalize the offer, WTR has a huge opportunity to win the auction of projects worth Rp15.53 trillion.

While the six toll road projects are also ready to be auctioned with a total investment of Rp135.60 trillion. The six projects are Semanan – Balaraja toll road along 31.90 km, Kamal – Teluk Naga – Rajeg along 38.60 km, Patimban Port Access along 37.70 km, Gedebage – Tasikmalaya – Cilacap along 184 km, Solo – Yogyakarta – Kulon Progo along 91.93 km, and Yogyakarta – Bawen along 77 km.

The government is continuously working to realize an effective and efficient national transportation system to improve the mobility of goods and services. In an effort to support the national logistics system, the Government implements a policy of transaction integration on toll roads.

From 2015 to June 2019, the agency has completed the operation of 985 km. From 1978 to June 2019, toll roads in Indonesia that have been fully constructed and operate have reached 1,780 km, the agency data showed.

US$1=Rp14,000

Written by Staff Editor, Email: theinsiderstories@gmail.com