TEMPO Interactive, Jakarta:Recapital Securities Research Division chief, Poltak Hotradero is of the opinion that toll road infrastructure is the most expensive investment in Indonesia. The highest cost must be spent on land release. “This is a classic problem, but must be resolved soon,” he told the press yesterday, adding that this was the reason why construction of toll roads has been stagnant since the 1970s.
Ideally, Indonesia should have 4.000 kilometer-long toll roads, but there are only 720 kilometers of these highways. The same condition applies for the 6.500 kilometer-long railway tracks which have not changed much since the Dutch colonial era. Yet, railway tracks are crucial to reduce production costs. “Many of the railway tracks are not properly maintained, they are often even overloaded. This can cause accidents,” Poltak said. Moreover, Indonesia’s water transport potential, he added, was not supported by an adequate number of serving ports. “Without adequate infrastructure, Indonesia cannot compete globally,” he said.