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)