Local investors will build container ports

Local investors will build container ports

JAKARTA (JP): The government will assign two leading local
companies, Humpuss and Citra Lamtorogung Persada, to construct
container terminals in Jakarta and Surabaya with a total
investment of US$765 million.

Minister of Transportation Haryanto Dhanutirto said here
yesterday that the government has finalized the deal with Humpuss
to build a container port at the Tanjung Priok port in Jakarta
with an investment of $495 million.

"At the moment, the government is still engaged in
negotiations with Citra Lamtorogung for another container
terminal at the Tanjung Perak port in Surabaya with an estimated
cost $270 million," Haryanto told journalists after addressing
the five-day World Infrastructure Forum-Asia 1994.

Citra Lamtorogung belongs to President Soeharto's eldest
daughter Siti Hardiyanti Rukmana and Humpuss to her brother
Hutomo Mandala Putra.

Speaking on the third day at the forum, Haryanto offered
private sector companies the opportunity to build other container
ports in Medan of North Sumatra, Ujungpandang of South Sulawesi,
Panjang in Lampung and Kabil in Batam.

In addition to the ports, the minister said, the construction
of public airports have also been offered to private sector
companies. They are, among others, new airports in Medan, Padang
of West Sumatra, Bandung, Solo/Surakarta of Central Java,
Surabaya, Ujungpandang, Lombok of West Nusa Tenggara and Biak of
Irian Jaya.

The government has offered Citra Lamtorogung a contract for
the construction of a new airport in Medan with an investment of
almost $1 billion.

Airports

Haryanto said an American company has submitted a proposal to
his office to renew airports in Biak and Pontianak in West
Kalimantan and to build a new one in Lombok.

"We are still reviewing the proposal," he said.

Haryanto noted that land transportation projects are also
lucrative for private investments as more and better land
transportation infrastructure facilities in big cities are badly
needed.

The government has also offered the private sector to take
part in the construction of bus terminals, railway tracks and
stations, weighing bridges as well as motorized vehicle testing
equipment.

A consortium led by Citra Lamtorogung has been chosen to
construct the Manggarai integrated terminal in Jakarta, which is
expected to cost some $3.2 billion.

Haryanto said total investments in transportation projects for
the coming five years are projected to reach $13 billion, of
which 44 percent is expected from private investors, 27.4 percent
from foreign loans, 12.5 percent from state-owned companies and
the rest from the government's budget.

When asked about the possible incentives offered by the
government, Haryanto said, "I don't think it's necessary for the
government to give more incentives as the investment climate in
transportation has been so good."

He noted that for this year alone, his office has received
proposals from private companies for projects with total
investments of Rp 15.5 trillion ($7.1 billion). (rid)