House opposed to highway toll rates<\/p>\n
JAKARTA (JP): A House of Representatives commission expressed
\nopposition yesterday to the government's plan to raise toll road
\ntariffs, proposing, instead, the introduction of a cross-subsidy
\nsystem in the operation of highways.<\/p>\n
\"The government should not increase the rates of the existing
\ntoll roads because their investors have recovered their capital
\nand even made profits from their operations,\" a member of
\nCommission V, Sofyan Usman, said during a hearing with Minister
\nof Public Works Radinal Moochtar.<\/p>\n
However, Sofyan said he did not object to PT Jasa Marga, the
\nstate-owned company in charge of managing Indonesia's toll roads,
\nsetting higher rates for newly-opened toll roads.<\/p>\n
Achmadi, vice chairman of the commission, which is in charge
\nof transportation and tourism, said that the Ministry of Public
\nWorks should submit a proposal to the House regarding the planned
\nincrease in toll roads fees before making such a proposal to the
\nPresident.<\/p>\n
The government has allowed private sector companies to take
\npart in the construction and administration of toll roads but the
\ntoll rates continue to be determined by the government. This is
\nthe first time the government has consulted the House of
\nRepresentatives before increasing toll rates.<\/p>\n
Radinal promised yesterday that the government would not raise
\nthe tariffs before it had obtained approval from the House.<\/p>\n
The president of PT Citra Marga Nusaphala Persada, a company
\nwhich has established a toll road between Cawang and Tanjung
\nPriok in Jakarta, Siti Hardiyanti Rukmana, recently proposed that
\nthe highway toll rates be raised by between 25 percent and 50
\npercent to help it increase the accumulation of funds for loan
\nrepayment.<\/p>\n
The toll rates for the highway segment between Cawang and
\nGrogol are between Rp 2,000 (about 89 U.S. cents) and Rp 4,000 --
\ndepending on the size of the vehicle. Citra Marga, under an
\nagreement, collects three quarters of the toll revenues and Jasa
\nMarga only the remaining quarter.<\/p>\n
Citra Marga, which is listed on the Jakarta Stock Exchange,
\nis 22 percent-owned by Yayasan Purna Bhakti, 17.78 percent by
\nJasa Marga, 13.2 percent by PT Bhaskara Duniajaya, 8.89 percent
\nby state-owned steel company PT Krakatau Steel, 8.8 percent by PT
\nIndocement Tunggal Prakarsa, 4.4 percent by Citra Lamtoro Gung
\nPersada, 0.5 percent by cooperatives and 24.4 percent by the
\ninvesting public.<\/p>\n
Radinal told reporters that the proposal for the toll rate
\nhike was aimed at attracting investors for the construction of 19
\nnew toll road segments in Java and Sumatra.<\/p>\n
So far 48 investors, including eight foreign firms, have
\nqualified to take part in the tender for the construction of the
\nroad segments.<\/p>\n
The government raised toll road tariffs in July 1992 by
\nbetween 20 percent and 50 percent.(31)<\/p>",
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