Toll revenue falls 7% in 1998

JAKARTA (JP): State-owned toll operator PT Jasa Marga is estimating an almost 7 percent decline in toll revenue in 1998 in the wake of the country's acute monetary crisis.

Revenue is predicted to fall to Rp 676.2 billion (US$84.02 million) from Rp 727 billion in 1997.

Company president Wiyoga Adiwasito told a year-end news conference on Wednesday that the financial crisis had caused a sharp decline in the number of vehicles using toll roads.

"The number of vehicles using the toll roads slipped 6.4 percent to 483 million vehicles in 1998 compared to 500 million in 1997," he was quoted by Antara as saying.

The toll road operator was optimistic prospects for 1999 would be better despite many economists' forecasts for continued gloom.

"We expect the toll revenue to increase 3 percent and traffic volume to grow 2.75 percent in 1999," he said.

Strong suspicions of corruption have shadowed infrastructure projects under PT Jasa Marga's aegis, mostly linked to the Soeharto family.

Wiyoga said the company has identified at least 21 out of 107 profit-sharing contracts with private firms -- most owned by former president Soeharto's family and their cronies -- which were tainted by corruption, collusion and nepotism.

"The 21 projects are worth around Rp 10.67 trillion," he said.

Sixteen of the 21 projects, worth around Rp 6.28 trillion, were awarded through preferential treatment by the government while the remaining five, worth Rp 4.39 trillion, were accorded special privileges.

"The government is currently renegotiating with the private firms on the 16 projects in order to find the best solution," Wiyoga said.

The company has also revoked the principal licenses of 24 other toll road projects.

It has canceled 16 projects worth Rp 7.52 trillion which were in the tender process, and postponed 13 tendered projects valued at Rp 8.86 trillion which had not begun construction.

Jasa Marga's efforts are part of the country's struggle to combat collusion, corruption and nepotism, blamed as the primary cause for a huge loss in international confidence during the crisis. (aly)