Govt defends DRB-Hi Com role in JORR project<\/p>\n
JAKARTA (JP): The government brushed aside on Thursday critics
\nwho doubted the competence of Malaysian investor DRB-Hi Com in
\nthe long-awaited Jakarta Outer Ring Road (JORR) project.<\/p>\n
Minister of Settlement and Regional Infrastructure Erna
\nWitoelar said the Malaysian company had sufficient equity to
\nsupport the toll road project, which is expected to cost DRB-Hi
\nCom and its Indonesian partner PT Jasa Marga Rp 5 trillion
\n(US$526.3 million).<\/p>\n
"They didn't come to us empty-handed. We have checked their
\nfinancial report and they have prepared a Rp 1.2 trillion budget
\nfor the project," she said.<\/p>\n
Erna was responding to a group of House of Representatives
\n(DPR) legislators who demanded the government's clarification
\nover the propriety of DRB-Hi Com.<\/p>\n
She said the Malaysian company had also earmarked around Rp
\n800 billion to free the land used for the construction project.<\/p>\n
The project, covering 63 kilometers, will link all outlying
\nareas of Jakarta and is designed to ease traffic congestion in
\nthe capital.<\/p>\n
Erna claimed that all of the procedures prior to the deal were
\ntransparent.<\/p>\n
"We coordinated this with the House and frankly we couldn't
\nwait any longer to start the project as we were concerned about
\nhow to provide people with more jobs," she said.<\/p>\n
"Again, apart from economic reasons, heavy traffic congestion
\nand poor road conditions in Jakarta have given us no choice but
\nto build more roads."<\/p>\n
JORR's initial investors, namely PT Citra Mataram Satriamarga
\nPersada, PT Marga Nurindo Bhakti and PT Citra Bhakti Margatama
\nPersada, which are linked to former president Soeharto's daughter
\nSiti "Tutut" Hardijanti Rukmana, managed only to complete 40
\npercent of the project when the economic crisis struck the
\ncountry in mid-1997. The government then suspended the joint
\nventure.<\/p>\n
The remaining 60 percent of the project, at the time of
\nsuspension, was either under construction or in its preparatory
\nstages.<\/p>\n
Left-over projects included construction of roads linking
\nPondok Pinang and Kebon Jeruk, Jagorawi toll road and Cikunir,
\nand Kebun Jeruk and Penjaringan.<\/p>\n
The investors were also preparing the construction of the ring
\nroad connecting Cikunir, Cilincing and Tanjung Priok when the
\nproject came to a halt.<\/p>\n
The Indonesian Bank Restructuring Agency (IBRA) took over the
\nthree companies' nonperforming loans from nationalized banks, and
\nalong with state toll road operator PT Jasa Marga formed a joint
\nventure, called New Co., to continue the JORR project. (edt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-defends-drb-hi-com-role-in-jorr-project-1447893297",
"image": ""
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