Toll road projects attract investors

The Jakarta Post, Jakarta

Investors from Australia, Malaysia and Saudi Arabia have expressed interest in participating in the construction of four stalled toll road projects on densely populated Java island, according to a minister.

Minister of Settlement and Regional Infrastructure Soenarno said the foreign investors were interested in financing the Surakarta-Semarang, Cileunyi-Nagreg, Semarang-Batang and Gempol- Pandaan toll road projects.

He did not disclose the number of investors or their names.

"The investor from Australia has expressed seriousness in developing the Solo (Surakarta)-Semarang segment. The investor came to me and met with the Central Java governor to realize their investment plans," Soenarno said last week.

He added that the Saudi Arabian investor had pledged some US$800 million for the development of toll roads in Indonesia.

The development of the aforementioned toll roads was halted following the 1997 economic crisis.

Elsewhere, Soenarno said that the government was also considering constructing toll roads outside Java, particularly in Riau (Dumai-Pekanbaru), South Sumatra (Palembang-Sriwijaya) and one in South Sulawesi.

He said that Rp 16 trillion ($1.57 billion) was needed to finance the construction of various toll roads in the country, and since the government had no money, the role of foreign investors was crucial.

He said that ensuring a conducive business climate at home was vital to attract foreign money.

Meanwhile, Indonesian Toll Road Association chairman Fachtur Rochman said that unless law and order was restored in Indonesia foreign companies would not invest here.

"They will remain on the sidelines because of the legal uncertainties here," he said.

Fachtur also said that issues concerning road tolls and land provision were among the main problems that the government needed to resolve to encourage foreign investment in domestic toll roads.

Plans to raise road tolls have often been opposed by lawmakers.