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Jakarta Post

Dim outlook for trans-Sumatra highway

The government has expressed pessimism over the punctual completion of the 2600-kilometer trans-Sumatra toll road project, which has run up against financing and land procurement problems

Farida Susanty (The Jakarta Post)
Jakarta
Mon, June 6, 2016

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Dim outlook for trans-Sumatra highway

The government has expressed pessimism over the punctual completion of the 2600-kilometer trans-Sumatra toll road project, which has run up against financing and land procurement problems.

The megaproject, designed to connect 24 toll road sections, is estimated to cost Rp 331.69 trillion (US$24.7 billion) and was slated to finish by 2019.

The project was expected to support the upcoming Asian Games, set to be held in Jakarta and Palembang, South Sumatra, from August to September 2018, as the government was targeting to finish the toll road sections connecting Medan in North Sumatra, Pekanbaru in Riau and Palembang in time for the quadrennial event.

With the deadline approaching, however, government officials appear to be pessimistic about the feasibility of the ambitious target.

Speaking in a public discussion last week, Public Works and Public Housing Minister Basuki Hadimuljono said he had recently informed President Joko “Jokowi” Widodo that the construction of the trans-Sumatra toll road would likely be completed behind schedule.

“The trans-Sumatra [project] is a tough one,” he said, declining to elaborate.

Similar concern was voiced by the ministry’s secretary general, Taufik Widjoyono, who compared the project with the 498-km trans-Java toll road project.

“The trans-Java project is likely [to be finished] by 2018. The land is ready, there is a bridging fund. However, for the trans-Sumatra project, the problems lie maybe with land procurement or the capacity of Hutama Karya,” he said recently, referring to the state-owned construction firm assigned to build most parts of the road.

Taufik said the late disbursement of a Rp 3 trillion capital injection (PMN) from the 2016 state budget for Hutama Karya had also created difficulties for the company to finish the project.

The government assigned Hutama Karya to build the toll road to improve connectivity in the region despite the lack of commercial appeal.

Based on the latest data from the Toll Road Regulatory Agency (BPJT), construction of the 24.5-km Palembang-Indralaya section, slated to be finished by 2017, has only progressed 15 percent, even though the necessary land procurement is 71.26 percent complete.

Meanwhile, the 17-km Medan-Binjai section, slated to be finished in 2018, only saw construction progress of 14 percent, while land procurement progress stood at 78 percent.

Hutama Karya president director I Gusti Ngurah Putra confirmed that there were indeed problems with land procurement and funding.

“We are trying to provide bridging funds for the land procurement in four sections, including Medan-Binjai and Palembang-Indralaya. We are trying to expedite the process,” he said, adding that the funds were estimated to amount to Rp 1.8 trillion.

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