Tuesday, November 1, 2016

Trans-Java toll road to be completed in 2018

The government is set to complete the trans-Java toll road linking Jakarta and Surabaya in 2018 as an effort to smooth transportation on the island

The government is set to complete the trans-Java toll road linking Jakarta and Surabaya in 2018 as an effort to smooth transportation on the island, National Development Planning Minister Bambang Brodjonegoro has said.

To support the acceleration of infrastructure project development, the government has encouraged the use of non-state budget resources for financing infrastructure projects, Bambang said, adding that the toll road would be the first project financed by pension funds.

“Apart from pushing the private sector’s role in infrastructure projects with the public-private partnership (PPP) scheme, the government will use long-term financial resources that we can transfer into equity financing for public projects, among others, pension funds,” said Bambang at a press conference

Waskita Karya and Hutama Karya, state-run construction companies who are developing the toll road sections, will get financing from insurance and pension funds through state infrastructure financing firm PT Sarana Multi Infrastruktur (SMI), as well as BPJS Tenaga Kerja and Taspen as intermediaries.
The three firms will issue bonds that can be bought by insurance and pension funds. Proceeds from the bonds will be used to purchase equity in state-run construction companies.

“We will push the use of pension funds in real investment. It is expected the financial close will be reached between November and December, targeting Jakarta and Surabaya to be connected by toll roads by 2018,” he went on.


Source : Ayomi Amindoni – the jakarta post

Picture Source : Google


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