Toll road projects attract investors
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.