TEMPO.CO, Jakarta - The development of Indonesia's railway network and the Trans Papua land road will help bring down the price of goods in the country's eastern region by up to 50 percent, an official has stated.
Director of transportation affairs of the Ministry of National Development Planning/Bappenas, Bambang Prihartono made the remarks here on Tuesday, adding that the planned development of land transport network would reduce logistic costs amounting to three percent of the Gross Domestic Product (GDP).
In the meantime, the development of sea transportation will reduce logistic costs amounting to four percent of the GDP.
Prihartono further said that the Ministry of Transportation is trying to complete a feasibility study for the Papua railway train project.
In addition to the ongoing feasibility study, the Ministry of Transportation has decided upon the first route, the Sorong-Manokwari stretch.
"We are awaiting another feasibility study which will be handled by the Public Works Ministry," Prihartono noted.
According to the director of the transportation ministry, Papua has the highest logistic costs.
"Once the railway line and the Trans Papua land road are built, we estimate that the price of cement will decrease from Rp1 million to Rp500,000 per sack," he added.
ANTARA
