Jasa marga to spend US$688 million for roadways spanning Java
The Jakarta Globe, Jakarta - 04/01/2011
State-owned toll-road operator Jasa Marga plans to spend Rp 6.2 trillion ($688 million) this year to finance the development of its roadway projects across the densely populated Java Island, a top executive said.
That figure represents a major increase from the Rp 1.5 trillion it spent in 2010, state-run news agency Antara reported.
“Around 30 percent of the funding will come from internal cash and 70 percent from external funding,” said Frans Sunito, president director of the company. Jasa Marga may seek bank loans, too, the report said.
The funds will be used to finance seven toll-road projects, part of the company’s long-term plan to build 200 kilometers of toll roads in the next three years. The government is been trying to boost the development of infrastructure projects such as toll roads, seaports and airports to spur economic growth in the country.
Jasa Marga’s toll-road projects include Ungaran-Bawen in Central Java; the Surabaya-Gempol toll road in Surabaya; Ulujami-Kebon Jeruk; Surabaya-Mojokerto; the Bogor Ring Road; and two toll roads as part of the Jakarta Outer Ring Road.
Some construction has begun while other projects are still in limbo until land acquisition is completed, the report said.
Jasa Marga expects revenue to increase 30 percent this year to Rp 4.8 trillion from an estimated Rp 4.3 trillion last year. It recorded Rp 3.7 trillion in profit in 2009.
Profit rose to Rp 960.5 billion in the first nine months of last year, the report said.
Problems in land acquisition may hamper infrastructure projects in Indonesia, the report said. Jasa Marga must negotiate with residents as part of the land clearing process. The new land regulation bill, which has been submitted to the House of Representatives for debate, is expected to resolve those problems.