$3.8b transportation studies proposed<\/p>\n
Novan Iman Santosa, The Jakarta Post, Jakarta<\/p>\n
In an effort to improve access to cities in border regions, the
\nMinistry of Transportation has conducted feasibility studies on
\ntransportation in those areas so that they will not lag behind
\nthose in Java.<\/p>\n
The studies, funded by a grant from the Asian Development Bank
\n(ADB), came up with 26 projects worth US$3.8 billion for air,
\nland and sea transportation.<\/p>\n
"Transportation development in these regions should be
\nimplemented with good coordination and integration between the
\ncentral government and regional administrations," Minister of
\nTransportation Hatta Radjasa said on Wednesday in a speech at a
\nseminar on the studies.<\/p>\n
He said his ministry had led many initiatives to support the
\nacceleration of development in border areas.<\/p>\n
The studies cover the connections of two ASEAN sub-regions:
\nthe Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and the
\nBrunei-Indonesia-Malaysia-Philippines-East ASEAN Growth Area
\n(BIMP-EAGA).<\/p>\n
The IMT-GT stretches from Thailand down to Malaysia and
\nincludes the Indonesian provinces of Aceh, North Sumatra, West
\nSumatra, Riau, Jambi, South Sumatra and Bengkulu.<\/p>\n
Meanwhile BIMP-EAGA covers Brunei, Malaysia, the Philippines
\nand all the Indonesian provinces in Kalimantan, Sulawesi, Maluku
\nand Papua.<\/p>\n
The bulk of the proposed projects were two railway projects in
\nSumatra Island connecting Muaro-Dumai-Duri-Rantau Prapat worth
\nsome US$2.5 billion and another in Kalimantan linking Pontianak
\nand Sambas in West Kalimantan to Kuching in Malaysia worth some
\n$425 million.<\/p>\n
This left about $901 million to finance the other proposed
\nprojects.<\/p>\n
Study team leader Ken Kumazawa told The Jakarta Post that
\nthree of the 26 projects should be the highest priority,
\nconsidering their economic potential.<\/p>\n
The three are the improvement of Medan-Penang ferry route
\nusing the existing service; the construction of Pontianak-Kuching
\nroad and railway; and the improvement of sea routes linking
\nManado and Bitung in North Sulawesi to General Santos and Davao
\nin the Philippines.<\/p>\n
Kumazawa also said that such projects were needed to reduce
\nthe disparity of development between Java and other islands.<\/p>\n
"The Indonesian government used to concentrate everything,
\nfrom industries to toll roads, in Java which was good for
\nefficiency. All the money was in Java after all," he said.<\/p>\n
The Indonesian government will need around $150 billion for
\ninfrastructure development during the next five years. Some $25
\nbillion, or 17 percent, is expected from the state budget; $30
\nbillion from domestic finance institutions; $10 billion from
\nforeign donors; and $80 billion in bulk from private and foreign
\ninvestors.<\/p>\n
Some of the 26 transportation projects were put up for
\ninvestment at the just-concluded Infrastructure Summit. During
\nthe summit, the government invited investors to take part in 91
\ninfrastructure projects worth $22 billion.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/38b-transportation-studies-proposed-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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