Land Acquisition Fund for Disbursement in Second Half

Indonesia Finance Today - 29/06/2012

The Public Service Agency (Badan Layanan Umum/BLU) on Land Acquisition for Toll Road projects targets to disburse revolving fund of Rp 2.4 trillion (US$ 254.4 million) in the second semester of 2012. The revolving fund will be allocated for land procurement of 22 toll roads sections in the Trans Java, Non-Trans Java and Jakarta, Bogor, Depok, Tangerang and Bekasi (Jabodetabek) area toll road networks.

 

Achmad Ghani Gazali, Head of Toll Road Regulatory Agency (Badan Pengatur Jalan Tol/BPJT), said that the distribution of revolving fund will be boosted to accelerate land acquisition of the 22 toll road sections. The government targets to operate most of the toll road sections in 2014.

 

The toll road sections are Cikampek-Palimanan, Pejagan-Pemalang, Pemalang-Batang, Semarang-Batang, Semarang-Solo, Kertosono-Mojokerto, Surabaya-Mojokerto, Gempol-Pandaan, Gempol-Pasuruan, Pasuruan-Probolinggo, Waru-Aloha-Tanjung Perak, Ciawi-Sukabumi, Bogor Ring Road, Cinere-Jagorawi, JORR W2 North, Cibitung-Cilincing, Depok-Antasari, Kunciran-Serpong, Cengkareng-Kunciran, Serpong-Cinere, Cimanggis-Cibitung and Bekasi-Cawang-Kampung Melayu.

 

The BLU’s total managed fund reaches Rp 6.15 trillion. Since 2008 to June 2012, the cumulative funds that are already distributed for land acquisition is at Rp 2.8 trillion. BLU has remaining fund of Rp 3.35 trillion. Achmad Ghani explained that the revolving fund distributed in the first half of 2012 includes the payment of loan for land acquisition of Rp 1.43 trillion given by the Government Investment Center (Pusat Investasi Pemerintah/PIP).

 

“With fund distribution projection of Rp 2.4 trillion by the end of 2012, there will still be fund of Rp 950 billion by the end of this year,” he said.

 

Achmad Ghani estimates that BLU will distribute revolving fund of up to Rp 5.6 trillion in 2013 using the funds from the returned fund of toll road operators amounting to Rp 4.95 trillion and additional fund from the 2012 State Budget of Rp 900 billion.