Indonesian Political, Business & Finance News

Cipularang toll road brings positive impacts to local economy

| Source: JP

Cipularang toll road brings positive impacts to local economy

Kelik Dewanto, Antara/Jakarta

President Bambang Susilo Yudhoyono officially opened on July 12
the second section of the Cikampek-Purwakarta-Padalarang toll
road, better known as the Cipularang II, spanning 41 kilometers.

Motorist are now required to pay a toll after being exempt
from paying one since April 26. Some 30,000 vehicles pass the
road daily. The tariff for Group I vehicles, such as sedans,
minibuses and light trucks from the East Pondok Gede tollgate in
Jakarta to the Pasteur tollgate in Bandung, a distance of 131 km,
has been set at Rp 29,000 (US$3.00).

Various snags that once suspended the decision on tariffs were
finally resolved with the inauguration of the toll road.

The most crucial problem was technical, particularly the
unstable soil condition, which was prone to landslides. However,
the problem was overcome by building sloping restraining walls on
road shoulders.

Chief director of state-owned toll road operator PT Jasa Marga
Syarifuddin Alambai, acknowledged that the Cipularang toll road
project was the most difficult project the company had worked on,
technically as well as financially.

It was technically challenging because the company had to
complete the project in a year's time, from April 7, 2004 to
April 24, so that the road could be used by delegations from some
100 nations of the Asian-African Summit in Jakarta to
trace the steps made by heads of Asian and African countries 50
years ago, held on April 24 this year in Bandung.

The Cipularang toll road runs through numerous hills, rivers
and deep canyons and it required cut-and-fill methods such as
scraping, excavating, filling and the reinforcement of soil.

At least 10 hills had to be cropped, yielding 18 million cubic
meters of earth from excavation and filling works.

In Pasir Honje, South Purwakarta regency and Cikarentong in
Bandung regency, for instance cut-and-fill works produced a 30-
meter-deep landfill.

Besides that, contractors had to redo several land contour
works due to the unstable condition of land in Pasir Honje and
Batu Datar. The Cikubang bridge in Cikalongwetan, Bandung
regency, the pillars of which are 60 meters -- the tallest in
Indonesia -- required specific a construction technique, while
the cranes used in various road construction projects in
Indonesia thus far, could only lift concrete girders to 30
meters.

The same problem was also encountered during the construction
of the Cipada bridge in Cipatat, Bandung regency, recorded as the
bridge with the longest span of 700 meters.

It was also difficult from funding aspects because the
Cipularang II project required Rp 1.6 trillion, which needed to
be secured in a short time. Jasa Marga had not enough time to
issue bonds or get loans from banks.

Jasa Marga acknowledged that it was racing against time to
finish the project. "We are required to complete the project
before April 24," said Syarifuddin who was entrusted to lead Jasa
Marga since May, 2001.

For bridge construction, for example, they decided to use the
prestressed I-shaped girders, while for foundation and piling
works in deep ravines, they brought in a sophisticated launcher
device from Italy that could lift concrete girders up to 60
meters high as a substitute for cranes.

To prevent erosion, terraced retaining walls, the slopes of
which conformed to the soil condition, were built.

To reach a short completion target, the project was carried
out simultaneously in nine sections by nine contractors around
the clock.

To overcome funding problems, Jasa Marga launched a contractor
full prefinance (CFP) funding scheme, in which contractors would
first fund the project with loans from banks that had obtained a
guarantee from Jasa Marga. Jasa Marga would later repay the loans
and their interests in several years.

The journey through the Cipularang toll road takes only
one-and-a-half hours from Jakarta to Bandung at an average speed
of 80 kilometers an hour, compared to the normal time of three-
and-a-half hours, thus saving time and energy as well as vehicle
operation costs.

In addition, the presence of the toll road will also spur
development in the area and rapid industrial growth in Bekasi,
Karawang, Garut, Purwakarta, Subang and Bandung. It will also
spur tourism in Bandung city as the city has been a favorite
weekend hangout for Jakartans for years, thanks to its cool
climate and beautiful scenery.

Besides providing positive impacts on the economic growth and
attracting foreign investors, the toll road brings a multiplier
effect, which is immediately noticeable.

The Cipularang II project alone used up 25,000 tons of iron
rods for concrete reinforcement, 523,000 tons of cement, 1.3
million cubic meters (cu m) of gravel, 514,000 cu m of sand, and
created 50,000 jobs, as well as involved 30 consultant and
contractor companies. It has also enhanced the heavy machinery
rental business, transportation and also food stalls opened by
area residents during the road construction.

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