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Private sector expected to contribute 27% of road construction
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Several motorcycles pass through a collapsed road in Cireki village, Sumedang district, West Java, on March 7, 2016. (Photo Courtesy of/West Java Transportation Agency)
T
he government hopes private companies develop 27 percent of new roads nationwide, Public Works and Public Housing Minister Basuki Hadimoeljono has said.
Under the Indonesia Road Development Plan 2015 to 2019, the government plans to develop 2,650 kilometers of toll roads. Some 1,000 km of the roads have been developed. In addition to that, the government also plans to expand the capacity of 3,073 km of existing roads.
The total cost of the projects is Rp 733 trillion (US$34.99 billion). The central government can only develop 37 percent of the roads, while 27 percent is expected to be developed by local governments, and another 27 percent by private companies, with the remaining projects developed by state-owned enterprises.
(Read also: Trans-Papua road set to be completed next year)
“We have issued regulations to improve the investment climate, including regulations on government support, government guarantees, tax reduction and land acquisition,” Basuki said as reported by tempo.co after opening the Road Engineering Association of Asia and Australasia (REAAA) in Jakarta from March 22 to 24.
He said apart from discussing the latest technology in road development, the conference, attended by some 1,000 participants, including those from Japan, the Philippines and Australia, was expected to attract more private companies to the development of the country’s infrastructure.
Meanwhile, Indonesian Road Developers Association (HPJI) chairman Hadiyanto W. said the government needed support from private companies to develop infrastructure, including roads. “The 15th REAAA is attended by many potential investors,” he added. (bbn)
