End of 2018 Nine Sections of TransJava Are Finished

INDUSTRY.co.id - Jakarta - Public Works and Housing Minister Basuki Hadimuljono said the nine Trans Java toll roads will be inaugurated and operate gradually from July to December 2018.

"Pejagan-Pemalang Toll Road along the 43 km and Solo-Sragen Toll for 36 km, currently the progress is 100 percent and ready to be inaugurated in July 2018," said Minister Basuki in a written statement in Jakarta, Wednesday (27/6/2018)

In September 2018, the toll roads to be operated are the Sragen-Ngawi Toll (51 km) with the current physical progress of 96 percent and the Porong-Gempol Toll (6 km) with the current physical progression of 76 percent.

Then in October 2018 will operate the Salatiga-Kartosuro Toll (32 km) with the current physical progress of 70 percent.

Furthermore, in November 2018 will operate Pemalang-Batang Toll (33 km) with 72 percent current physical progress, and Batang-Semarang Toll Road (74 km) with current physical progress 78 percent.

Finally in December 2018 will operate the Wilangan-Kertosono Toll (37 km) with the current physical progress of 70 percent and Tol Pasuruan-Grati-Probolinggo (44 km) with the current physical progress of 36 percent.

The PUPR Ministry seeks to complete the construction of Trans Java Toll Road from Merak-Banyuwangi along 1,150 Km by the end of 2019.

Currently, along 920 km is connected from Merak-Pasuruan, where 607 km is operational and the remaining 313 km is targeted to be completed by the end of 2018.

President Joko Widodo said that toll road construction should be integrated with economic growth nodes, such as industrial areas, seaports, airports, tourist areas, and large-scale settlements. Thus, the development of toll roads is really beneficial for the business, tourism and industry.

Java Trans Toll is needed to increase connectivity in Java Island which contributes more than 50 percent for national economic growth, as well as to lower logistics costs so as to enhance Indonesia's competitiveness as Nawa Cita Government of President Joko Widodo and Vice President Jusuf Kalla.

In addition, the availability of toll roads is also directed to further encourage the development of local economic potential along the toll corridor, one of them by providing lot-lot for micro, small and medium enterprises (MSMEs) in rest area.

The government uses the scheme of government cooperation with business entities (KPBU) both with private and state-owned enterprises in the construction of toll roads that require capital-intensive and long-term investments thereby reducing the burden on state budget expenditures.

For economically and financially feasible toll roads will be fully funded from the investment of a business entity. While government support is given to economically viable toll roads but financially still lacks.

Minister Basuki conveys at least four benefits of the KPBU. First, there is a risk sharing between the Government and the private sector such as funding and land acquisition. Second, the transfer of knowledge and technology from the private sector to the Government.

Third, the target of completion of the work with the CDEU is independent of the budget cycle if its development uses the APBN funds and the success of the CCT in a region becomes a successful example for the entry of other private investment.

"Through the KPBU scheme, the government aims to address the imbalance of infrastructure funding, especially toll roads to accelerate the settlement, thus providing tangible benefits to the state," Basuki said.

Thus, APBN funds can be focused on infrastructure development that requires "direct government investment".