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)