Govt Signs Guarantee Agreement for Four Toll Road Projects

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  • TEMPO/Imam Sukamto

    TEMPO/Imam Sukamto

    TEMPO.CO, Jakarta - The government has signed a guarantee agreement worth Rp37.2 trillion for four toll road projects.

    “A guarantee agreement for toll road [projects] has been awarded for safe and secure investments,” Finance Minister Sri Mulyani Indrawati said in her opening address of the signing event.

    Sri Mulyani said the government will guarantee the toll road projects of Jakarta–Cikampek II Elevated, Krian–Legundi–Bunder-Manyar, Cileunyi-Sumedang-Dawuan (Cisumdawu), and Serang-Panimbang. In Cisumdawu, sections III to VI will be developed by the winning bidder PT Cipta Marga Nusaphala Persada, whereas sections I and II will be developed by the government.

    The 36-km long Jakarta-Cikampek II Elevated project will be developed by state-owned PT Jasa Marga (Persero) Tbk. The project is likely to cost Rp14.7 trillion. The 38-km long Krian-Legundi-Bunder-Manyar toll road project will be developed by state-owned PT Waskita Karya (Persero) Tbk. The 84-km long Serang-Panimbang will be developed by a consortium led by state-owned PT Wijaya Karya (Persero) Tbk. Some Rp5.3 trillion will be invested.

    Sri Mulyani explained that the scope of work of the Finance Ministry in the projects includes political risk caused by regulatory changes. Another risk to be guaranteed is land clearing problems, any dispute in tariff increases and force majeure.

    The Coordinating Minister for Economic Affairs Darmin Nasution expects the infrastructure project to boost the economy.

    Darmin said that the state budget would not be enough to fund the projects developed by the government across Indonesia worth Rp4,800 trillion. He expects the private sector to contribute 36 percent to the amount.