15 major projects allowed to continue after review
JAKARTA (JP): President Soeharto has issued a decree providing the go-ahead for the implementation of 15 projects previously reviewed or postponed under a massive retrenchment policy announced in September to cope with the monetary crisis.
The Presidential decree dated Nov. 1, a copy of which was made available to The Jakarta Post yesterday, states that the 15 projects -- consisting of eight power projects, four toll road projects, one airport project, one building project and one equipment-provision project -- are allowed to continue.
Eight of the projects had been put under review, while the remaining seven were postponed under Presidential Decree No. 39, issued on Sept. 20.
The latest decree does not clearly provide reasons for the new policy. It only states that the policy was made "based on review results of the projects".
Presidential Decree No. 39 postponed and put under review some US$37 billion worth in infrastructure projects financed with foreign loans to cope with the rupiah's sharp depreciation against the U.S. dollar.
Several ministers had repeatedly hinted that the list in the September decree could be changed later, depending on the review's findings on the progress of each project.
Among the eight power projects which were allowed to continue is the controversial Tanjung Jati C power project in Jepara, Central Java. The 1,320 megawatt coal-fired power project worth $1.98 billion was awarded to Consolidated Electric Power Asia (CEPA) Indonesia in reward for its willingness to reduce the price for another power project, Tanjung Jati B, also in Jepara.
Industry sources said CEPA obtained the go-ahead approval on the back of a politically influential businessman.
The other power projects include the 1,320 megawatt coal-fired Tanjung Jati A power plant also in Central Jakarta, being developed by a consortium made up of President Soeharto's daughter Siti Hediati Prabowo and the Bakrie Group; the 330- megawatt Sarulla geothermal power project in North Sumatra owned by a consortium of the United States' Unocal Corp. and Nusamba Group of tycoon Muhammad "Bob" Hasan; and the 55-megawatt Patuha geothermal power plant in West Java by a consortium controlled by California Energy of the United States.
The other power projects are the Karaha geothermal power plant, Unit 1 and Unit 2 of the Drajat geothermal power plant, the Asahan I hydropower plant, and the Palembang Timur combined- cycle power plant in South Sumatra which is sponsored by PT Astra International.
The new airport project to replace Polonia Airport in North Sumatra is being built by PT Citra Lamtorogung Persada, owned by Soeharto's daughter Siti Hardiyanti Rukmana, also known as Tutut.
The three revived toll road projects are the Semarang Section C toll road, the Ujungpandang toll road, the Pondok Aren-Serpong toll road and the Aloha Waru-Tanjung Perak toll road. (jsk)
Table A: Projects changed from "reviewed" to "continued"
No. Project Value (US$m) Location
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1. The Semarang Section C toll road na C. Java
2. The Ujungpandang toll road 51 S. Sulawesi
3. The Pondok Aren-Serpong toll road na W. Java
4. The Jamsostek tower project na Jakarta
5. Patuha 1 geothermal power plant 95 W. Java
6. Asahan 1 hydropower plant 180 N. Sumatra
7. Tanjung Jati A steam power plant 1.66 C. Java
8. Tanjung Jati C steam power plant 1.77 C. Java
Table B: Projects changed from "postponed" to "continued"
No. Project Value (US$m) Location
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1. Aloha Waru-Tg. Perak toll road 247 E. Java
2. Karaha 1 geothermal power plant 380 W. Java
3. Sarulla geothermal power plant 330 N. Sumatra
4. Darajat 1, 2 geothermal power plant 475 W. Java
5. Palembang Timur combined cycle
power plant 168.5 S. Sumatra
6. Construction and Management new
airport in Medan na N. Sumatra
7. Improvement of the Meteorological
and Geophysical Equipment project na