Sat, 14 Nov 2009
From: The Jakarta Globe
By Janeman Latul & Dion Bisara
The country’s biggest toll-road operator said on Friday that it wanted to participate in the development of the massive Sunda Strait Bridge project, but urged the government to play a bigger role in financing the project, saying it was not currently attractive to international investors.

Frans Sunito, president director of PT Jasa Marga, said the Rp 100 trillion ($10.7 billion) bridge would probably never be completed if the government relied on private investors to contribute the majority of the project’s financing.

“It will take too long for them to reach the break-even point [on their investments] even if the project included tax holidays and supporting regulations,” he said.

Frans said the project should be pursued because it would provide huge economic benefits to the people of Sumatra.

“It would help some neglected areas in Sumatra as the traffic of goods and services would increase significantly,” he said.

The plan calls for a 30 kilometer bridge spanning the Sunda Strait between Java and Sumatra. Eighty percent of all Indonesians live on the two islands.

The project would consist of a series of spans carrying a six-lane highway and double-track railway that would also traverse the islands of Prajurit, Sangiang and Ular.

The longest span of the bridge is projected to be about three kilometers, more than 50 percent longer than the longest span of the Akashi-Kaikyo Bridge in Japan, the longest in the world.

The bridge could be operational as soon as 2020, with construction scheduled to begin in 2012 - if the government finds funding for it.

Hatta Rajasa, the coordinating minister for the economy, told reporters on Friday that President Susilo Bambang Yudhoyono had a vision of “island connectivity,” which he believed was an inevitable part of globalization and the country’s future development.

In line with this vision, Yudhoyono wanted to see the Sunda Strait Bridge project completed, Hatta said.

“We already have two or three pre-feasibilty’ studies from the local governments at Lampung and Banten,” said Hatta, adding that the studies included data on tectonic plates, ocean currents and maps of the ocean floor.

The initial “pre-feasibility” study was conducted by PT Bangungraha Sejahtera Mulia, a subsidiary of Artha Graha Networks, a company owned by tycoon Tommy Winata.

However, Hatta said it was highly unlikely that financing for the project would be determined within the new government’s first 100 days.

Indrajaja Manopol, the chief financial officer at PT Adhi Karya, one of the country’s biggest state-owned construction companies, said he and three other construction state enterprises were ready to help develop the bridge.



News Search/Filter
Transaction Rates
13 Dec 17
Buy
Sell
AUD1
10,673.83
9,913.61
BND1
10,423.17
9,678.35
BTC1
229,840,033
229,840,033
CAD1
10,959.09
10,178.86
CHF1
14,219.82
13,209.20
CNH1
2,126.64
1,975.55
DKK1
2,224.06
2,066.04
EUR1
16,553.17
15,376.96
GBP1
18,767.96
17,433.24
HKD1
1,804.75
1,676.62
JPY100
12,419.78
11,535.21
LAK1
1.70
1.57
NOK1
1,690.57
1,569.63
NZD1
9,789.04
9,089.00
PGK1
4,494.39
3,965.97
SEK1
1,675.33
1,555.79
SGD1
10,423.17
9,678.35
THB1
432.31
401.38
USD1
14,089.00
13,089.00
VND1
0.62
0.58
Taxation Exchange Rates
31 Aug 16 - 06 Sep 16
USD 1
13,232.00
AUD 1
10,043.30
CAD 1
10,213.70
DKK 1
1,999.40
HKD 1
1,706.22
MYR 1
3,283.28
NZD 1
9,623.63
NOK 1
1,605.23
GBP 1
17,433.70
SGD 1
9,757.68
SEK 1
1,569.45
CHF 1
13,631.10
JPY 100
13,101.00
MMK 1
11.01
INR 1
197.29
KWD 1
43,920.70
PKR 1
126.23
PHP 1
285.00
SAR 1
3,528.53
LKR 1
91.12
THB 1
382.08
BND 1
9,756.53
EUR 1
14,885.50
CNY 1
1,987.61

Okusi Associates: Indonesian Business & Management Services