393 km of Trans Sumatra Toll Road is Fully Operational
Date 7 Juli 2020
The Government through Ministry of Public Works and Public Housing has built 393 kilometers out of 2,878 kilometers Trans Sumatra Toll Road which is scheduled for completion in 2024.
“The road from Bakauheni to Banda Aceh is the backbone, while the wings are roads from Bengkulu, Palembang, Padang, Sibolga, and Medan,” Minister of Public Works and Public Housing Basuki Hadimuljono said after a Limited Meeting at the Merdeka Palace, on Tuesday (7/7).
The remaining 1,194 kilometers are still under construction, and 1,291 kilometers are in preparation stage. The toll road is due for completion in 2024 but the lack of funding hampers the construction.
“We need Rp500 trillion to construct 2,878 kilometers toll road, including the segment (393 kilometers) that is fully operational. Banking sector has committed to provide Rp72.2 trillion, the Government provides Rp21.6 trillion, and Rp19.6 trillion of state capital injection is allocated to state-owned construction company PT Hutama Karya for the project. So the total is Rp113 trillion,” he said.
For that reason, the Minister emphasized that the project still needs a budget of Rp387 trillion to complete entirely.
“As for the construction of the backbone alone that stretches 1,970 kilometers from Bakauheni to Banda Aceh without its wings from Bengkulu, Padang, Sibolga, it requires Rp266 trillion,” he said.
So far, the available budget is only Rp75.4 trillion which sourced from banking sector amounting to Rp42.2 trillion, the Government amounting to Rp16.1 trillion, and state capital injection amounting to Rp17.1 trillion. Thus, the project still needs Rp191 trillion.
The Minister went on to say that Minister of State-owned Enterprises, Coordinating Minister for Maritime Affairs and Investment, Coordinating Minister for Economic Affairs, and Minister of Finance will discuss about the financing scheme.
“We have several options; the aforementioned ministers will decide the financing scheme whether through long term bond or other options. If the decision is long term bond, there should be government guarantee,” he explained.
The Minster asserted that problem in the construction of Trans Sumatra Toll Road is only the funding. (TGH/EN)
Translated by : Rany Anjany
Reviewed by: Mia Medyana