The Surabaya-Mojokerto section of the Trans Java toll road project in Krian distric, Sidoarjo regency, East Java, Friday (26/5). The construction of a number of toll road sections is speeded up to anticipate heavy traffic during the Lebaran festivity.
JAKARTA, KOMPAS – State-owned enterprises (BUMNs) engaged in the construction sector are expected to build 1,000 kilometers (km) of toll roads by 2019.
The construction of toll roads is one of the government’s key programs to create equitable development and to spur economic growth as well as to reduce logistics costs.
The toll road construction target was unveiled by Deputy to the State Owned Enterprises Minister for construction and transport facilities and Infrastructure, Pontas Tambunan, during a press conference in Jakarta on Monday.
According to Pontas, from 1978 to 2015, the SOEs built only 590 km of toll roads. “By 2019, SOEs expect to build 1,000 kilometers of toll roads," Pontas said. The construction of toll roads is expected to reduce logistics costs from 25 percent of gross domestic product (GDP) to 15 percent of GDP in 2019.
Also attending the press conference were the president director of PT Waskita Karya (Persero) M Choliq, the president director of PT Jasa Marga, Desi Arryani, the president director of PT Wijaya Karya, Bintang Perbowo and the president director of PT Hutama Karya (Persero), I Gusti Ngurah Putra.
At the press conference, Pontas also explained that the construction of toll roads, such as Trans-Sumatera and Trans-Java, as well as those in eastern Indonesia, were one of key components of the government’s efforts to create a more equal distribution of development so that all regions would be able to grow new economic centers.
Other infrastructure
The reduction of logistics costs would not only be carried out through the construction of toll roads, but also through the development of other infrastructure facilities such as ports and their supporting facilities, Pontas said. Reducing loading and unloading time at ports is also an important aspect in cutting the logistics costs, he added.
Pontas said the SOEs engaged in the construction sector would allocate about Rp 113 trillion (about US$8.5 million) in capital expenditures in 2017 to support the development of the infrastructure projects. Their working capital reached a total of Rp 38 trillion in 2016.
Choliq said the toll road construction was expected to exceed the target of 1,000 km by 2019. "By 2019, the total length of the roads to be built will reach 1,300 km," he said. At present, the length of toll roads already built reaches 700 km.
The SOEs are expected to construct 400 km of toll roads in 2017, 400 km in 2018, and another 500 km in 2019, he added.
If added with existing toll road infrastructure, the accumulative length of the toll roads would reach 2,000 km by 2019. Some toll road projects currently underway include Trans-Sumetera toll road projects, such as the 17 km Medan-Binjai toll road, the 60 km Tebing Tinggi-Kisaran toll road, the 61.9 km Medan-Kualanamu, the 98.5 km Parapat-Tebing Tinggi, the 130 km Pekanbaru-Dumai, the 90 km Palembang-Tanjung Api-api, the 111.6 km Kayu Agung-Palembang-Betung, the 130 km Bakauheni-Terbangi Basar, the 100 km Terbangi Beasar-Pematangpanggang, the 85 km Pematangpanggang-Kayu Agung and the 22 km Palembang-Indralaya. The completion targets for a number of these toll road segments are in 2017, 2018 and 2019.
For Trans-Java, the toll road projects currently under construction are the 57.5 km Pejagan-Pemalang segment, the 39.2 km Pemalang-Batang, the 75 km Batang-Semarang, the 73 km Semarang-Solo, the 90.2 km Solo-Ngawi, the 87 km Ngawi –Kertosono, the 36.3 km Surabaya-Mojokerto, the 34 km Gempol-Pasuruan, the 31.3 km Pasuruan-Probolinggo and the 37.6 km Pandaan-Malang. The completion targets of these projects fall between 2017-2019.
