Private sector backs road toll increases<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The private sector has expressed support for the government's
\nmove to increase road toll rates on the condition that the
\nincrease is based on sound economic calculations and not
\npolitical pressure.<\/p>\n
\"Such a move is needed as investors need certainty to
\ncalculate the projected revenue on their investment,\" the
\nIndonesian Chamber of Commerce and Industry (Kadin) chairman
\nMohamad S. Hidayat said.<\/p>\n
He said that the government should give its assurance that the
\nrates were set based on economic, not political, considerations
\nin a bid to attract fresh investment to the country's ailing
\ninfrastructure.<\/p>\n
Investors have been somewhat reluctant to invest in
\ninfrastructure projects such as toll roads, power, water and
\nports as rates that are determined by the politically climate
\npose a high risk on their return on investment.<\/p>\n
Hidayat, however, said that according to Law No. 38\/2004 on
\nroads, the government could make adjustments to toll rates
\nthrough a ministerial regulation without legislators'
\nendorsement.<\/p>\n
The government raised road toll rates on Tuesday at 9 p.m.<\/p>\n
State toll road operator PT Jasa Marga president director
\nSyarifuddin Alambai said Minister of Public Works Djoko Kirmanto
\nhad signed the ministerial regulation on the toll rate hike
\nearlier in the day.<\/p>\n
\"The minister signed it (the regulation) this morning
\n(Tuesday) and it will take into effect at 9 p.m.,\" he said as
\nquoted by Antara.<\/p>\n
He added that there would be an average increase of 16
\npercent.<\/p>\n
However, public transportation vehicles are entitled to a 25
\npercent discount if they subscribe to monthly toll tickets, with
\nthe exception of taxis.<\/p>\n
Djoko said on Monday that Jakarta's city toll rate would
\nincrease by Rp 500 (51 U.S. cents), which would mean an increase
\nfrom Rp 4,000 to Rp 4,500 for private cars.<\/p>\n
He acknowledged there have been many complaints about the poor
\nservices provided by toll operators and questions as to whether
\nthe increase in the rates was appropriate.<\/p>\n
Nevertheless, toll road operators had submitted their plans to
\nimprove their services including a plan to open new toll gates to
\nease congestion.<\/p>\n
Djoko said his ministry would issue a warning to toll road
\noperators if they failed to fulfill their promise to improve
\nservices.<\/p>\n
The law on roads and Government Regulation No. 15\/2005 on toll
\nroads stipulate that road tolls shall be raised every two years
\nto adjust to inflation.<\/p>\n
The last increase was in June 2003.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/private-sector-backs-road-toll-increases-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }