Govt resumes massive toll road projects<\/p>\n
The Jakarta Post
\nJakarta<\/p>\n
The government is planning to build 4,400 kilometers of toll
\nroads across the country, and is adopting a new tariff policy to
\nlure investors, a senior government official said on Thursday.<\/p>\n
Minister of Resettlement and Regional Infrastructure Soenarno
\nsaid the projects were located in Java, Sumatra, Kalimantan and
\nSulawesi.<\/p>\n
Their construction plans were resumed after President Megawati
\nSoekarnoputri lifted a decree last year that suspended them due
\nto the 1997 economic crisis, he said.<\/p>\n
\"Financing it shouldn't be a problem, we'll leave that up to
\nthe private sector,\" Soenarno said in a press briefing after
\nattending a Cabinet meeting.<\/p>\n
In Java, he said, toll road projects would take up 1,400
\nkilometers, linking Banten in Java's westernmost province of
\nBanten with Banyuwangi on the island's easternmost tip.<\/p>\n
\"Of the 1,400 kilometers, 575 kilometers are already in use,\"
\nhe added.<\/p>\n
One of the suspended projects includes the Jakarta Outer Ring
\nRoad, which hit a snag over finding the right investor.<\/p>\n
He said the government was also evaluating whether old
\ninvestors still had funds to build the remaining 825 kilometers
\nin Java. \"If they don't have the financial means, we'll have to
\ndrop them and retender the projects.\"<\/p>\n
The construction of toll roads has virtually come to a halt
\nsince the 1997 economic crisis, with neither the government nor
\nprivate local investors having enough capital.<\/p>\n
Foreign investor interest has remained high, however, as
\ntraffic flows continue to grow, helped by a boost in economic
\nactivities.<\/p>\n
Last year, Soenarno said a number of foreign investors had
\napproached the government over the financing of the construction
\nof toll roads in Java. He said a Saudi Arabian investor had
\npledged some US$800 million for their development.<\/p>\n
The government's reluctance to raise toll tariffs had,
\nhowever, dampened investors' appetites.<\/p>\n
\"We have had plenty of talks with foreign investors, they
\ncomplain about many things but at the end of the day it comes
\ndown to tariffs,\" said Coordinating Minister for the Economy
\nDorodjatun Kuntjoro-Jakti.<\/p>\n
To this end, the government will draw up a new tariff policy
\nfor not only toll tariffs but also water and transportation fares
\namong others, Soenarno said.<\/p>\n
Under the present mechanism, raising toll tariffs is a
\npolitical decision in need of legislators approval.<\/p>\n
Soenarno said discussion over the new tariff policy had yet to
\nstart. But according to him, the government wants a more flexible
\ntariff policy and also to lend regional governments a greater
\nsay.<\/p>\n
Dorodjatun added that President Megawati would inaugurate a
\nnumber of giant projects on Wednesday next week.<\/p>\n
The projects include a petrochemical plant, a fertilizer plant
\nand a gas pipeline, he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-resumes-massive-toll-road-projects-1447893297",
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