New Jasa Marga Chief Announces Java Estate Plan
Ivan Dasa Saputra. The Jakarta Globe, Jakarta - 30/01/2012
State toll road operator Jasa Marga’s new managing director has announced plans to build an industrial estate in Surabaya as part of a diversification plan.
The Jakarta-based company announced on Monday that Adityawarman, previously its director of operations, would replace Frans Sunito as its president director.
Adityawarman said the company planned to this year build an estate on a 200,000-hectare site in Surabaya, the nation’s second-biggest city, that will include satellite towns.
He said the company expected to clear 50,000 hectares of land in the first stage of the East Java project. The company has held discussions with state and private companies to build the industrial estate.
“If things run smoothly, we can start the construction of the estate this year,’’ Adityawarman said in Jakarta after a shareholders meeting.
Jasa Marga has set aside Rp 150 billion ($16.8 million) to finance its non-toll road business this year. The company has allocated Rp 7.7 trillion to capital expenditure for its toll road business this year. The company will seek external funding to finance the company’s business plans this year, Adityawarman said.
Jasa Marga has held talks with state housing company Pembangunan Perumahan and Surabaya Industrial Estate Rungkut to develop the project. SIER manages three estates: an eponymous site as well as the Sidoarjo Industrial Estate Berbek and the Pasuruan Industrial Estate Rembang.
Jasa Marga is also aiming to build two toll roads in Medan. The company is planning two toll road sections: the 20-kilometer Medan-Binjai line and the 18-kilometer Medan-Kuala Namu. Kuala Namu is an international airport located to the northeast of Medan.
“This project is part of efforts to boost infrastructure in Medan,’’ Abdul Hadi, the company’s director of operations, said after the shareholders meeting.
The Medan-Binjai line is estimated to cost Rp 1.2 trillion and the Medan-Kuala Namu Rp 1.5 trillion. Those two will be part of a 60-kilometer toll road estimated to cost Rp 4.5 trillion.
Indonesia is seeking to develop infrastructure projects to spur economic growth. President Susilo Bambang Yudhoyono has pledged to double spending on roads, seaports and airports to $150 billion to help achieve average economic growth of 6.6 percent through 2014.
Jasa Marga is currently involved in several projects including the Bogor Ring Road, the toll road linking Gempor and Pasuruan in East Java and the Semarang and Solo toll roads in Central Java.