Land for $500m sea port cleared

JAKARTA (JP): State-owned company PT Pelabuhan Indonesia (Pelindo) II started appropriating land yesterday in Bojanegara, Serang, West Java, for the construction of a US$500-million cargo port terminal.

A spokesman for the Serang administration, H. Hariyoto A.S., told Antara Tuesday that in the first phase of the land appropriation, the company will clear out 200 hectares of land at a total cost estimated at Rp 40 billion (US$17.5 million) by the end of this year. In the second phase beginning early next year it will clear out another 300 hectares.

The company has set their compensation rate for the land at Rp 10,000 to Rp 20,000 per square meter.

"The construction of the port will start next year," Hariyoto said.

According to Hariyoto, financial problems have delayed the land appropriation, which was originally scheduled to start in August.

He said the port project needs 1,200 hectares of land, of which 700 hectares would be gradually appropriated in line with the construction of port facilities such as storehouses and houses.

The establishment of the Bojanegara port was first introduced by the company's president, Amir Harbani, in a hearing with Commission V of the House of Representatives last year.

He said the planned Bojanegara port was one of the projects proposed by the company to the Ministry of Transportation at a total cost of Rp 4.4 trillion, which will also involve private companies.

The other proposed projects will include the Koja container terminal in Jakarta, the Talang Duku port project in Jambi and a multi-purposed container terminal in Pontianak Port, West Kalimantan.

He said the planned Bojanegara port was expected to take over 20 percent to 30 percent of container and cargo handlings from the Tanjung Priok port in Jakarta.

Harbani said the first phase of the port project, which will be built in five stages, is planned for 1998. (01)