Jokowi Aims to Fix Toll Road Connectivity, Slash Logistical Costs
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4 February 2022 15:32 WIB
TEMPO.CO, Jakarta - President Joko Widodo or Jokowi on Friday inaugurated the first section of the Binjai-Langsa toll road with a length of 11.8 kilometers designed to connect the North Sumatra province with Aceh. Once completed, the toll's entire section will span 131 kilometers.
In his speech, the President ordered that national toll road constructions must be followed by improvements in national highway connectivity.
Similar to the Binjai-Langsa toll built by SOEs contractor HK infrastructure, he intends to have every toll road accommodate and smoothen logistical distributions to industrial and agricultural areas.
“If the roads are as smooth as this, the cost structure of commodities such as oranges will be competitive and will not lose out on imported commodities,” said the President in a Youtube video upload by the Presidential Secretariat on February 4.
High logistical costs disrupting the competitiveness of local commodities remain to be one of the problems faced by the country. Until 2021, logistical costs comprised 23 percent of the GDP; the highest among ASEAN members.
President Jokowi believes logistical costs can be reduced by 75 percent once transportation infrastructures to economic hubs are improved.
Read: Jokowi Inaugurates 7 Ports in North Sumatra to Support Toba Lake Tourism
FRANSISCA CHRISTY ROSANA
