A major new toll link will boost Indonesia’s transport connections
Construction work on the 13.6km Gempol Pandaan toll road in East Java is commencing. The US$174.5 million project will take 18 months to complete and is expected to open for traffic in the third quarter of 2013.
April 10, 2012
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Construction work on the 13.6km Gempol Pandaan toll road in East Java is commencing. The US$174.5 million project will take 18 months to complete and is expected to open for traffic in the third quarter of 2013.
Toll road operator Jasa Marga of Indonesia has added four contracts at a cost of nearly US$2.4 billion to its highway concession portfolio.
Jasa Marga hold equity of between 55% and 65% in each project, according to a report by the Jakarta Post newspaper.
The contracts are for the 40km Bitung-Manado Highway in Sulawesi, the 99km Samarinda-Balikpapan Highway in Kalimantan, the 38km Malang-Pandaan Highway in East Java and the 75km Semarang-Batang Highway in central Java.
Netherlands-based Indonesia I
The authorities in Indonesia have set out extensive plans to source funding for new tolled highways. In all seven highway projects have been identified as crucial to expanding the network and improving connectivity for the Indonesian islands of Sulawesi, Java and Sumatra. Some US$25 billion in loans from overseas has been sourced by the Public Works Ministry of Indonesia.
Work on Indonesia's new 116km Palimanan-Cikampek highway is now commencing. The work is being managed by Malaysian firm PLUS Expressways (PLUS) and is the company's first Indonesian highway projects.
Indonesian state-owned construction firm Waskita Karya will seek a bank loan of US$338 million for its work on the Pejagan-Pemalang toll project in central Java island. The project is being managed by Pejagan Pemalang Toll Road, a subsidiary of Waskita Karya.
Waskita company secretary Antonius Yulianto Nugroho said the firm has enough cash resources to cover a quarter of its financial commitment on the project and is targeting bank loans to cover the other 75%.
Waskita Karya plans to carry out a bond
