IKA set to build Cawang-Cikarang elevated freeway
IKA set to build Cawang-Cikarang elevated freeway
JAKARTA (JP): PT Investa Kusuma Artha (IKA) will start the development of a 30-km Cawang-Cikarang elevated toll road above the Malang river in June with an investment of more than Rp 900 billion (US$394.74 million).
"We've finished the feasibility study for the project and we're ready to start the construction in June," an executive of the private road construction company told The Jakarta Post here yesterday.
The freeway will be constructed above the Malang river and will connect Cawang in East Jakarta and the West Java city of Cikarang, some 40 km to the east of here.
He said that the construction of the toll road, which will be constructed under a build, operate and transfer arrangement with the state-owned PT Jasa Marga, will be completed in two years.
He noted that IKA and PT Jasa Marga have set up a joint venture.
"IKA will be the majority shareholder of the joint venture. But I cannot yet specify the shareholding composition as negotiations are still under way," he said.
Previously, operational director of Jasa Marga Bambang Soendjojo told the press that the plan for the toll road development was being studied by the Ministry of Public Works.
He pointed out that the last stage of negotiations for the plan will take about six months.
According to Bambang, IKA's feasibility study on the Cawang- Cikarang freeway was made separately from the development of the integrated Manggarai station that is now under construction.
"The two plans should be connected. We first have to consult with the Jakarta administration before choosing a company to build this toll road," he noted.
But he said that IKA, which did the feasibility study, would most likely be chosen as the developer of the road.
IKA is a subsidiary of PT Bhaskara Dunia Jaya owned by Djoko Ramiadji, who constructed the Cawang-Tanjung Priok elevated toll road. He is also the president of PT Marga Nurindo Bhakti, a road construction company that is currently building the southern part of the Jakarta outer ring road.
Jasa Marga, which plans to sell shares on the domestic and foreign stock exchanges in July, is tendering the construction of 19 tollway projects, of which 18 will be located in Java and the other one in North Sumatra. The projects, with a total length of 770 kilometers, will cost an estimate of Rp 6.07 trillion. (13)