Who owns toll roads

Who owns toll roads

From Gatra

When replying to reporters' question, on Dec. 5, 1994, the
Minister of Public Works stated that the toll road business was
very promising and very profitable simply because the number of
vehicles kept increasing and vehicle products kept growing.

It was also believed that congestion, that occurred on non-
toll roads, makes drivers turn to toll roads, and this in turn
gives a great advantage to the toll road business and the profit
will be well over what has been estimated before.

However, these statements are quite contradictory to the
recent statements made by the Minister, Radinal Moochtar. He said
he was considering whether the present toll road fee would not
cause the investor to suffer losses in business. The minister
should have said would society be burdened if the toll road fees
are increased?

The president of Jasa Marga, Maryadi, said toll road fees
might be increased by 15 to 20 percent. And this has yet to be
decided by the President.

Based on the earlier statement of the Public Works Minister,
that the toll road business promised a very bright future, the
plan to raise the fee is incomprehensible. With the duration of
toll road management prolonged to 30 years, it will give the
management an opportunity to reschedule repayment of the debt,
the debt service ratio and other responsibilities, so as to
alleviate the yearly burden, and a certain fund could be
allocated to finance new investments, i.e. construction of the
Tanjung Priok-Jembatan Tiga-Pluit toll road.

Bearing this in mind the minister is hoped to reconsider the
plan for raising toll road fees, to avoid the impression that the
toll road business is only benefiting the entrepreneur.

IDADI ULPANADI

Jakarta