President Optimistic with Toll Roads

September 7, 2015, Kompas, Page: 17, Section: Economy

OGAN ILIR, KOMPAS – President Joko Widodo was happy to see the progress of the Palembang – Indralaya toll road construction process in South Sumatera, which has been running fast. With this progress, the President is optimistic that the target of the toll road’s operation at the beginning of 2018 can be achieved.

In the inspection made by the President on Sunday (6 September), it was visible that the road body at the marshland location in Ogan Ilir Regency, South Sumatera, had been built.

Since the groundbreaking ceremony was done by the President on 30 April 2015, the construction process has now involved the road body and it has covered 8.5km of the total length of 27km planned for the Palembang – Indralaya (Palindra) segment. The total length of the marshland portion of Palindra toll road is 22km.

The construction of the road body in the marshland area requires fairly complicated stages. In addition to landfill as deep as 3.5m, a process must also be done to extract water from the marshland.

“This has been running for four months and its progress, I think, is extraordinary. The construction work has been very quick,” President Joko Widodo, who was accompanied by Minister of Public Works and People’s Housing Basuki Hadimuljono and South Sumatera Governor Alex Noerdin.

According to Basuki, the construction of Palindra toll road faces technical problems related to the construction site in the marshland. However, these technical problems have been solved by the process of backfilling and bombardment to remove water from the soil.

Land acquisition for the Palindra toll road has also continued to take place. Still, there is one parcel of ​​land that has yet to be acquired. However, South Sumatera Governor said his government could finish it.

Meanwhile, although the government’s capital expenditure for infrastructure development has entered the 9th month, business people have not fully felt the effects. The capital expenditure budget amounts to Rp 290.3 trillion.

“We set contract targets in 2015 on the optimistic position for the infrastructure development programme of the government. It turns out that the budget absorption is very small,” said Corporate Secretary of PT Wijaya Karya Beton Tbk, Puji Haryadi. Contract acquisition by this subsidiary of PT Wijaya Karya that produces precast concrete is still small.

Expected to rise
In the first quarter of 2015, Wika Beton obtained contracts worth Rp 550 billion. In the second quarter of 2015, the acquisition of contracts amounts to Rp 1.35 trillion. With these small amounts of contracts relative to the government’s large capital expenditure budget, Puji hopes the acquisition of contracts will rise in the second half of 2015.

According to Executive Director of the Indonesian Employers Association, Agung Pambudi, the short-term programme and projects that are ready to be undertaken, must be prioritized. The infrastructure programme for building irrigation networks in rural areas is one example that can be done immediately. If completed, the projects will raise the incomes of farmers. (WHY/NAD/CAS)

Infrastructure Projects Starts to be Executed

Trans-Sumatera Toll Road
The road connecting Lampung and Aceh needs a budget of Rp 360 trillion

Development of Merak, Bakauheni, Bandar Lampung, Palembang and Tanjung Api-Api (MBBPT) Area
Rp 53.63 trillion for road construction and Rp 8 trillion for development of Merak Port

Solo – Ngawi – Kertosono Toll Road segment
The 90.10km-long Solo – Ngawi segment requires a budget of Rp 5.14 trillion, while the Ngawi – Kertosono segment (87.02km) needs a budget of Rp 3.83 trillion.

Construction of 226 Electric Power Facilities
Worth Rp 18.7 trillion during the first semester of 2015

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