Indonesian Political, Business & Finance News

Jasa Marga for toll road hike

| Source: JP

Jasa Marga for toll road hike

BANDUNG (JP): State-owned toll road operator PT Jasa Marga is
scheduled to meet Minister of Communications Agum Gumelar on
Friday to request his approval of their proposal to increase
tolls for eight turnpikes.

Company spokesman David Wijayatno said after a meeting between
the company and consumers on Wednesday that PT Jasa Marga would
also report the valuable input from the meeting.

Following strong public opposition, the company has embarked
on a campaign to publicize its plan to increase the tolls.

Meetings with consumers have been held in Jakarta, Surabaya
and Bandung to gather input.

Jasa Marga operational director Marijanto told consumers in
Bandung on Wednesday the company had no other choice to cover its
huge expenses but to increase tolls by 30 percent.

Marijanto said the increase was sought for Jakarta's Jagorawi,
Jakarta-Cikampek and Jakarta-Tangerang highways, Tangerang-Merak
and Padalarang-Cileunyi in West Java and Surabaya-Gempol in East
Java and North Sumatra's Belawan-Medan-Tanjung Morawa.

However, the toll hike has been decried by members of the
public, councillors and consumer activists. Jasa Marga has been
accused of ignoring the interests of the public.

A consumer activist said the government and the toll road
operators invariably argued the toll hike was to cover
maintenance costs which were much higher than their revenue.

Marijanto said his company was left "dizzy" in trying to curb
the operational costs of the turnpikes, accounting for 80 percent
of the total revenue.

"Jasa Marga collects some Rp 700 billion annually from the
tolls. We have debts totaling Rp 400 billion. This is very
burdening."

He said the 30 percent increase would be ideal, judging from
the fact the tolls were not increased for 10 years, while the
operational costs rose from day to day.

He promised the company would improve its public service in
line with the toll hike. (25/sur)

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