Ari Mulia to engage in infrastructure development
Ari Mulia to engage in infrastructure development
JAKARTA (JP): PT Ari Mulia Putra Perdana, owned by the eldest grandson of President Soeharto, signed a memorandum of agreement last night with domestic and Malaysian firms regarding the establishment of a joint venture to build tollroads, ports and power plants in Indonesia.
According to the memorandum, the Malaysian company, Bina Puri Holdings BHD, will provide funds and technical know-how for the planned joint venture's projects, while Ari Mulia and the other Indonesian partner, PT Jayamitra Kencana, will provide funds only.
Speaking to reporters after the signing ceremony, Ari Mulia's chairman, Ari H. Wibowo S. Harjojudanto, 26, said that his company chose the Malaysian company as its partner because of its experience in big infrastructure projects in Malaysia and other countries.
"There is no doubt about their ability and that's why we've chosen them," he said.
Asked what projects were envisaged for the joint venture, he said it was too early to say.
"We haven't yet identified what projects we're going to undertake. This is only the signing of a memorandum of understanding," he said.
He said, however, that the planned joint venture might start with the development of an outer-ring road in the east Java capital, Surabaya.
He said that the joint venture is particularly aimed at helping the government to improve the country's transportation system with a view to accelerating national economic growth.
Datuk Tee Hock Seng, the managing director of the Bina Puri group, confirmed that the three companies had not yet decided what projects they would carry out.
The Indonesian government has recently offered the private sector the development of infrastructure facilities, notably tollroads.
In Java alone, 18 tollroad projects -- totaling 746 km -- have been offered to the private sector. The projects, together with a 24-km Medan-Binjai tollroad project in Sumatra, are now being tendered. All the tollroads will be in operation at the end of 2004.
The biggest tollroad constructor in Indonesia is PT Citra Marga Nusaphala Persada, a publicly-listed firm which has been established jointly by PT Citra Lamtoro Gung Persada, PT Jasa Marga, PT Krakatau Steel, Indocement Tunggal Prakasa, Hutama Karya, Yala Perkasa and Purna Bhakti Pertiwi Foundation.
Citra Lamtoro Gung, owned by Siti Hardiyanti Rukmana, the eldest daughter of President Soeharto, has constructed a tollroad in Malaysia and will soon commence work on a 35-km tollway worth US$1.3 billion in Manila. (13)