Malaysian firms eye Penang-Dumai bridge project

JAKARTA (JP): Minister of Public Works Radinal Moochtar said yesterday that several investors from Malaysia have announced their intention to invest in the construction of a bridge to connect Penang in Malaysia and Dumai in Riau province.

Radinal also confirmed that only PT Pakarti Trimitra Group, the company controlled by President Soeharto's grandson Ari Sigit has submitted a "concrete" proposal to invest in the construction of a bridge over the Sunda Strait between Java and Sumatra.

The minister said that his office has yet to respond to the Malaysian investors' proposal because such a scheme is a first for Indonesia.

"Therefore, we told them to provide more details about their intention to see whether or not such a project is feasible," Radinal told journalists after a hearing with House Commission V for public works, tourism and transportation.

He said that the Penang-Dumai project proposed by the Malaysian investors will consist of two sections, one connecting Penang and Rukat island and the other one linking Rukat and Dumai.

"They might have eyed potential businesses in Riau and West Sumatra, particularly in the palm oil industry. And they should have also realized that chances to expand palm oil plantations in Malaysia are very limited," Radinal said.

Radinal declined to identify the investors but he confirmed that they must be big firms intending to set up a consortium.

He said that due to the business motives, those investors also hinted that they would invest in road projects between Dumai and Bukit Tinggi in West Sumatra, and between Bukit Tinggi and Padang, also in West Sumatra.

Commenting on Ari Sigit's proposal to invest in the Sunda Strait bridge project, Radinal said it is actually too early to discuss the project because not even a feasibility study has been completed yet.

"We are now giving top priority to two other projects, the Surabaya-Madura bridge and Java-Bali bridge," he said.

He, however, said that his office has accepted one proposal for the Sunda Strait bridge project.

"Together with the Agency for the Assessment and Application of Technology (BPPT), we are now studying the proposal," Radinal said.

He noted that if the proposal is reasonable, the ministry will allow the company to conduct a feasibility study.

"We don't know yet whether the project is feasible or not."

Radinal also denied that Ari Sigit or any consortium led by him would automatically win the contract to build the project. But he noted it would be unfair if any party who never made a proposal or feasibility study wins the contract for construction. (alo)