Toll road operator won't seek increase in tariffs

JAKARTA (JP): Toll road operator PT Citra Marga Nusaphala Persada (CMNP) has promised not to ask for an increase in tolls despite the sharp fall in the rupiah against the U.S. dollar, a minister said here yesterday.

Minister of Public Works Radinal Moochtar said the toll road operator would not ask for a tariff increase until the monetary situation returned to normal.

"We asked the company to help shoulder the difficulties in this current monetary crisis and wait until the situation returns to normal," he told reporters after a hearing with House of Representatives Commission V for transportation, tourism and housing.

Toll increases are based on a presidential decree at the recommendation of the minister of public works.

The rupiah has been under pressure for several weeks as a consequence of a fall in other regional currencies. The rupiah has devalued by over 20 percent since the central bank floated the rupiah on Aug. 14.

On Aug. 19, the central bank almost tripled the interest rates of its promissory notes (SBIs) to between 25 percent to 30 percent to shore up the falling rupiah. This caused an increase in interest rates on bank deposits by between 25 to above 30 percent.

As the monetary situation has started to recover the central bank has gradually lowered interest rates to below 27 percent.

Radinal predicts that the monetary situation will be back to normal by the end of the year.

Publicly listed CMNP, which is partly owned by Siti Hardiyanti Rukmana, manages the Cawang-Tanjung Priok and the Tanjung Priok- Pluit-Tomang toll roads.

The company last raised tolls by Rp 500 (17 U.S. cents) to between Rp 2,000 and Rp 5,000 in June 1996.

Radinal also said during the hearing that the ministry would delay certain development projects as part of efforts to cope with the monetary turmoil.

Projects which had not yet been tendered would be delayed, he said.

Projects which had been tendered but had not started construction would also be delayed.

Projects which were almost completed could be continued provided the projects benefited the public, he added.

"Projects which have just started constructed can also be continued but construction should be slowed down until the monetary situation gets back to normal," Radinal said without detailing the projects. (jsk)