IBRA invites more investors to bid for toll road project

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA) will invite more investors to bid for the US$380 million Jakarta Outer Ring Road toll project despite the recent appointment of Malaysian consortium DRB-Hicom as the preferred bidder of the project.

Syafruddin Temenggung, the secretary of the Financial Sector Policy Committee said late last week the auction would be opened as soon as the government issued the operating permit for the toll road project.

"We will formally announce the auction in the printed media soon after the permit is issued some time this week," he was quoted as saying by Bisnis Indonesia.

The Jakarta Outer Ring Road was initially constructed under a build-operate-transfer (BOT) scheme with PT Jasa Marga by three companies, PT Citra Bhakti Margatama Persada, PT Citra Mataram Satriamarga Persada and PT Marga Nurindo Bhakti, all of which were partly owned by former president Soeharto's daughter Siti Hardijanti Rukmana.

The toll road project, which would link all outlying areas of Jakarta and ease traffic congestion in the capital, was suspended in 1998 as part of the government's retrenchment program to cope with the economic crisis.

IBRA then took over the toll road project after the three companies failed to pay their debts of about Rp 1.07 trillion to local banks.

The agency and state-owned toll operator PT Jasa Marga later formed a joint venture company named PT Jalantol Lingkarluar Jakarta (JPJ) to revive the project.

IBRA has named the Malaysian consortium as the preferred bidder to take over the project after it agreed to provide Rp 800 billion for land acquisition supposed to come from the government.

Syafruddin said that the consortium comprising four Malaysian companies, Perspec BHD, Comrac BHD, Roadbuilder SDB BHD and Ranhill Corporation SDN BHD, would be given the chance to match the bidding made by the investor which wins in the auction.

"If DRB-Hicom is able to match the proposal of the selected bidder, it will be allowed to carry out the project. But, if it fails, the project will go to the auction winner," he added. (03)