Construction of two Jakarta toll roads completed

Construction of two Jakarta toll roads completed

JAKARTA (JP): The construction of two toll roads has been
completed, Maryadi Darmokumoro, the president of state-owned toll
operator PT Jasa Marga said yesterday.

Speaking to reporters here following a hearing with the House
of Representatives' Commission V for communications,
transportation, public works, tourism and public housing, Maryadi
said that the new toll roads amount to 12.3 kilometers, or 24.7
percent of the 49.71 km road to be built during the current
fiscal year. They comprise the 6.70 km Ancol Timur-Jembatan Tiga
segment and the 5.60 km Jembatan Besi-Grogol-Cengkareng segment,
both in Jakarta.

He said that the other 37.41 km consists of six segments in
the Greater Jakarta area: Tanjung Barat-Jagorawi (6.05 km),
Ulujami-Pondok Aren (5.30 km), Ramp TMII (5 km), Kebun Jeruk-Rawa
Buaya (4.96 km), Pondok Pinang-Ulujami (3.50 km) and Cakung-
Cikunir (4.65 km). In addition, there is one segment in East
Java: Surabaya-Gresik (5 km) and one segment in the South
Sulawesi capital city of Ujungpandang: Teuku Umar-Urip Sumoharjo
(2.95 km).

He said that the construction of the Tanjung Barat-Jagorawi
section will be completed in August. The other segments are under
construction or are being tendered.

"Including the two new roads, we now have a total of 462.3 km
of toll roads, which are mostly in Greater Jakarta and West
Java," he said.

Maryadi noted that some 198 km or 63.8 percent of the 310 km
of toll roads scheduled to be built during the current Sixth Five
Year Plan (begun in April 1994) had been completed.

"That means some 112 km more will have to be completed by
1999," he said.

During the next fiscal year (1997/98), toll road operator Jasa
Marga plans to build nine toll roads totaling 78.33 km, mostly in
the Greater Jakarta area.

The 78.33 km of toll roads which are being tendered include
the Rawa Buaya-Penjaringan segment in Jakarta (4.80 km), Pondok
Aren-Serpong (7.10 km), Jangli-Majapahit in Semarang, Central
Java (4.50 km), Cikampek-Padalarang in West Java (9 km) and
Palimanan-Ciperna in West Java (15.28 km).

"We will begin building the Medan-Binjai toll road (20.50 km)
in North Sumatra in April 1998," he said.

He said that because most of the toll road projects are
located in urban areas, their construction costs will be higher
than those completed outside cities.

"The construction cost of toll roads outside urban areas
averages Rp 10 billion (US$4.3 million) per km, not including the
cost of land appropriation, which may amount to as much as 15
percent of construction costs. The cost in urban areas is about
Rp 50 billion, not including the land cost, which usually amounts
to as high as 35 percent of the total construction cost," he
said.

He added that in some cities, the cost of land appropriation
equaled up to 50 percent of the total investment.

Maryadi said that during the current Sixth Five Year
Development Plan, his company needs more than Rp 20 trillion to
finance the construction of the 310 km toll road, as targeted by
the government.

"But we can only provide about Rp 2 trillion. We therefore
need the participation of the private sector," he said.

Asked when his company will go public, Maryadi said that he
did not know yet for sure. "The government has asked us to
prepare for listing this year. But I don't know yet the exact
date," he said.

He also said that it is not yet clear whether Jasa Marga will
also float its shares on the foreign stock exchanges as the other
state-owned companies -- PT Indosat and Telkom -- have done.

Maryadi said that Jasa Marga had also proposed to the
government to raise the tariffs of toll roads in Jakarta.

But the House members asked the government and Jasa Marga to
consider the interests of the general public before raising toll
road tariffs. (13)