Govt to Discuss Trans Sumatra Toll Road Project

TEMPO.CO, Jakarta - The government will immediately discuss the progress of the Trans Sumatra toll road project to speed up the realization of the much-needed infrastructure. "After August 17, the cabinet will convene a session chaired by the president," said Chairul Tanjung, the Coordinating Minister for the Economy, on Monday, August 11, 2014.

Chairul assured the discussion on the toll road project, which aimed at connecting major cities in Sumatra, will be expedited and its construction is set to kick off in the very near future, pending presidential approval.

Dedy Priyatna, the deputy for infrastructure of the National Development Planning Board (Bappenas), added the construction of the Medan-Binjai and Palembang-Indralaya sections were the ones to be accelerated among the four prioritized sections.

"We are focusing on two sections, which are Medan-Binjai and Palembang-Indralaya. The financing options, which are either through Indonesia’s sovereign wealth fund (PIP) or the state capital injection (PMN), will be also be canvassed in the meeting, after August 17," said Dedy.

Dedy guaranteed the four prioritized sections would be financed through PIP or PMN, but added that PIP was likely to be the more preferred scheme. "We will ask to get funding from both channels, but we will likely have to wait until next year if we want funding from PMN. For the time being, PIP is the preferred option," added Dedy.

The government has estimated that the cost of building the Medan-Binjai section is at the tune of Rp2 trillion, while the one spanning from Palembang to Indralaya will cost more than Rp1 trillion. The capital required to build all 23 sections of the Trans Sumatra toll road exceeds Rp 200 trillion.

Pewarta: Satyagraha / Editor: Heppy Ratna