Firms to build Rp 1.4t toll road in Central Java<\/p>\n
JAKARTA (JP): Construction company PT Sumber Mitra Jaya signed
\na joint venture agreement yesterday with state-owned toll road
\noperator PT Jasa Marga and two other partners to build a 91-
\nkilometer toll road worth Rp 1.4 trillion (US$500 million) in
\nCentral Java.<\/p>\n
The two other partners are PT Arthayasa Karya Bina Caraka and
\nthe army-owned Kartika Eka Paksi Foundation.<\/p>\n
Sumber Mitra Jaya president director K. Gowindasamy said the
\nconsortium would develop two toll roads, including a 56-kilometer
\ntoll road linking Pejagan and Pemalang and a 36-kilometer toll
\nroad linking Pemalang and Batang.<\/p>\n
\"I hope we can start construction early next year,\" said
\nGowindasamy, adding the construction of each toll road would take
\nthree years to complete.<\/p>\n
The consortium has the right to operate the Pejagan-Pemalang
\ntoll road for 24 years, including three years of construction and
\n20-year concession and 20 years to operate the Pemalang-Batang
\ntoll road, including three years of construction.<\/p>\n
The rupiah has declined by over 20 percent against the U.S.
\ndollar since early January this year, reaching its lowest level
\nin the past few weeks due to speculative attacks from local and
\nforeign fund managers.<\/p>\n
The four companies set up two joint ventures with different
\nshare composition to develop both toll roads, he said.<\/p>\n
The Pejagan-Pemalang toll road will be built by PT Mitra Jaya
\nArtha Arga (MJAA), 75 percent owned by Sumber Mitra Jaya, 10
\npercent by Jasa Marga, 10 percent by Arthayasa and 5 percent by
\nKartika.<\/p>\n
The Pemalang-Batang toll road will be built by PT Sumber Mitra
\nArtha Utama (SMAU), which is 65 percent owned by Sumber Mitra
\nJaya, 20 percent by Jasa Marga, 10 percent by Arthayasa and 5
\npercent by Kartika.<\/p>\n
Sumber Mitra Jaya director of finance S. Sadhu said the
\nprojects would be financed with a Rp 300 million equity and a Rp
\n1.1 trillion syndicated loan, adding the consortium have signed
\nan agreement with Bank Negara Indonesia (BNI) to lead the loan
\nsyndication, which will involve state-owned and private banks.<\/p>\n
Sadhu was optimistic the tight money policy now adopted by the
\ngovernment to shore up the falling rupiah would only slightly
\naffect financing the toll road projects.<\/p>\n
\"The current rupiah upheaval only had a small impact on
\ninfrastructure companies like ours because we only make use of a
\nsmall portion of imported components,\" Sadhu said.<\/p>\n
Jasa Marga president director Maryadi Darmokumoro said the
\ntoll roads would ease traffic jams on roads linking Brebes,
\nTegal, Pemalang, Pekalongan and Batang and enhance economic
\ndevelopment of the central part of the Central Java province.<\/p>\n
Maryadi said the Pejagan-Pemalang-Batang toll road was part of
\nthe 700-kilometer new network of toll road across Java planned
\nfor construction over the next few years to connect the Cikampek
\ntoll road in West Java with Surabaya in East Java and Semarang
\nand Probolinggo in Central Java.<\/p>\n
He said the new toll road networks would go from Cikampek in
\nthe west to Sadang, Cirebon, Semarang, Solo, and Surabaya in the
\neast. From Surabaya, it will go south to Gempol, Pandaan and
\nPasuruan, winding up in Probolinggo. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/firms-to-build-rp-14t-toll-road-in-central-java-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}