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Indonesia to develop trans-Sumatra toll road JAKARTA - The Trans-Sumatra Toll Road Development Project will soon commence following the signing of the order by President Susilo Bambang Yudhoyono (SBY).

"Yesterday (Thursday, September 18), the presidential regulation for the Trans-Sumatra Toll Road Development Project was signed by President SBY. So, PT Hutama Karya could prepare itself for the groundbreaking in the middle of next month," affirmed State Enterprises (BUMN) Minister Dahlan Iskan here on Friday.

In the presidential regulation, Yudhoyono has assigned PT Hutama Karya as the governments representative to implement the development project. Dahlan stated that soon after the Perpres (presidential regulation) was passed, he directly urged PT Hutama Karyas board of directors to commence work on the project.

"I think Hutama Karya is ready to start the development of the Trans-Sumatra Toll Road Development Project in line with the results of the meeting with other state-owned construction companies," he reported.

He remarked that the 2.7 thousand-kilometer Trans-Sumatra Toll Road Project will be carried out based on a "build-sell" scheme in the same manner such projects are executed in China.

"Toll road development in China is very fast because it is based on a "build-sell" pattern. Hutama Karya will adopt the pattern in cooperation with other state-owned companies," he emphasized.

Dahlan proposed that the pattern can also be combined with a turn-key system wherein each concerned party was bound by a working contract, but the company placing the order will issue payments only after the job is 100 percent complete and approved by it.

With the build-sell scheme, Hutama Karya could thus involve PT Jasa Marga Tbk as a standby buyer of a toll road section to be built. "The proceeds from selling a section could be used to finance the development of other sections," Dahlan pointed out.

With regard to construction, he explained that Hutama Karya would cooperate with other state-owned construction companies that have experience and financial capability such as PT Wijaya Karya, PT PP, and PT Adhi Karya.

It was earlier reported that PT Hutama Karya would not receive capital injection worth Rp2 trillion from the government as outlined in the 2015 budget, but it could still be proposed when the revised budget is discussed by the new government later.

President Yudhoyono is scheduled to hand over power to President-elect Joko Widodo on October 20 following the July 9, 2014, presidential election. The Trans-Sumatra Toll Road Project will be divided into four main and three priority corridors.

The four main corridors are Lampung-Palembang (358 kilometers), Palembang-Pekanbaru (610 kilometers), Pekanbaru-Medan (549 kilometers), and Medan-Banda Aceh (460 kilometers). Investment for the four corridors is estimated to reach Rp298 trillion.

The three priority corridors are Palembang-Bengkulu (303 kilometers), Pekanbaru-Padang (242 kilometers), and Medan-Sibolga (175 kilometers).


Tags: trans, Sumatra, toll, road, construction


Posted in Infrastructure @ 19 September 2014 18:23 CET by Blog Bot · 'Blog' RSS feed · permalink






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