T

he Lampung and Banten provincial administrations are eagerly waiting a Presidential Decree on the establishment of the Regional Board and Strategic Infrastructure Enterprise Zone for the Sunda Strait Bridge (JSS).

The two provinces will immediately merge a number of provincial enterprises (BUMD) into a consortium that will support the acceleration of the construction of the 30-kilometer Sunda Strait Bridge.

Lampung Governor Sjachroedin Z.P. said the consortium was very crucial to anticipate issues, which would arise following the completion of the mega project. “If the Lampung and Banten provincial administrations fail to cooperate, the people of Banten and Lampung will just become spectators when the bridge is completed, despite the fact there will be numerous business opportunities following its completion,” said Sjachroedin on Wednesday.

The Lampung administration is also drafting regulations, which will later serve as provincial bylaws regulating the ease of investment in Lampung and the protection of residents from the impact of the operation of the JSS. With the regulations, it is expected that Lampung residents will feel the positive impacts from the presence of the JSS.

“Without such regulations, a rapid flow of funds from Lampung to Jakarta will take place after Sumatra and Java are linked by the JSS, as it would be easier for Lampung residents to spend their money in Jakarta, beside that there is the fear of the presence of investors engaging in businesses that are not environmentally friendly,” said Sjachroedin.

He said President Susilo Bambang Yudhoyono was scheduled to endorse the Presidential Decree by the end of the week.

“The consortium will officially start working after the issuance of the decree. We have carried out the process of setting up the consortium, but it can only start working after the decree has been issued. The consortium will consist of a group of businesses involved in the project construction. So, Lampung and Banten businesspeople will be grouped under an entity,” said Sjachroedin.

Feasibility studies on the development of the strategic area and physical infrastructure of the JSS will be conducted after the consortium has been formed, he added.

Last week the central government emphasized it would make efforts to accelerate the project. Public Works Minister Djoko Kirmanto said in Jakarta last week that efforts to speed up the project had been made because it was on top of the national development priority list.

Djoko said the government had agreed to prioritize the project rather than the construction of the Malacca Strait Bridge. Malaysia has expressed its readiness to build the bridge, which will connect Sumatra and the Malaysian state of Malacca and by borrowing US$12.75 billion from the China Exim Bank for that purpose.

Coordinating Economics Minister Hatta Rajasa confirmed that the decree would be completed this week.

“If everything is completed, the Lampung and Banten administrations, as initiators, will immediately form a consortium with state and provincial enterprises, including strategic partners,” said Hatta. “The investment value is huge, amounting to $15 billion, and the state budget will not be able to finance the project completely. We are still expecting the involvement of private and public partnerships,” said Hatta.

According to Wiratman from Wiratman & Associates consulting firm, which is working with AG Network JSS, the JSS project is estimated to cost $10 billion.

The JSS has been designed as 70 meters high and 30.4 meters wide. It has been designed to withstand earthquakes and tsunamis, including volcanic activities from the active Mount Anak Krakatau.