Gov’t Carries on Road Preservation in Eastern S. Sumatra Road
Date 28 Juni 2020
The Government through Ministry of Public Works and Public Housing uses Sharia Sovereign Bonds (SBSN) or the State Bonds to fund infrastructure projects that have huge impacts on the economy by improving interregional connectivity and quality of roads as access to distribute logistics, as well as to reach tourist destination spots and airports/seaports.
One of the projects financed by SBSN is Eastern South Sumatra Road connecting Palembang, Betung, and border of Jambi Province.
Minister of Public Works and Public Housing Basuki Hadimuljono asserted that the State Budget (APBN) allocated for infrastructure development is limited. Thus, it requires other sources as financing innovation.
Under SBSN financing scheme, infrastructure development projects will only involve Indonesian workers including contractors and consultants which can increase national independency. On the contrary, bilateral or multilateral loans usually require Indonesia to involve contractors and consultants from donor countries.
“Ministry of Public Works and Public Housing makes the best use of alternative financing sources such as SBSN to bridge the gap between the needs and financing capacity of the State Budget in infrastructure development and management,” the Minister said.
The focus of projects under SBSN financing scheme covers the improvement of national roads quality in order to increase nation’s competitiveness and support the National Logistics System (SISLOGNAS).
This scheme is prioritized to finance preservation of roads which are fully operational in order to increase connectivity of the existing roads and cut travel time of main roads; one of which is road connecting border of Jambi Province and Peninggalan, South Sumatra Province.
The road which spans 90.15 kilometers and is preserved by using Rp193 billions of budget has 85.37 percent completed. Once the road preservation is completed, it can cut travel time from 3.5 hours to 2 hours.
In addition to that roads, the Ministry also conducts road preservation to Peninggalan – Sei Lilin- Betung Road spanning 77.74 kilometers by using SBSN financing scheme of 2019-2020. The preservation progress of the Road which has a total contract value of Rp209.6 billion has 81.35 percent completed. The completion is expected to cut travel time from 4 hours to 3.5 hours.
Head of the National Road Body overseeing the city of Palembang, Saiful Anwar, said that the Government is also improving the quality of Betung – Borders of Palembang Road spanning 56.16 kilometers. The progress of Road which has a total contract value of Rp124 billion has 67.31 percent completed. The completion is expected to cut travel time from 5 hours to 2 hours.
“Road preservation is also conducted to roads connecting Border of Palembang City, Sp. Indralaya, Sp. Meranjat, Borders of Kayu Agung City that spans 49.55 kilometers and has a total contract value of Rp118 billions. The road is expected to improve quality of services and cut travel time from 2.5 hours to 1.5 hours. The progress has reached 79.8 percent,” Saiful said.
He added that the Government also conducts road preservation to Celikah – Kayu Agung – Borders of Kayu Agung City – Sp. Penyandingan – Borders of Lampung spanning 109.6 kilometers. The preservation progress of the Road which has a total contract value of Rp199.9 billion has 73.2 percent competed and is expected to cut travel time from 3.5 hours to 2.5 hours. (Ministry of Public Works and Public Housing/EN)
Translated by : Rany Anjany
Reviewed by: Mia Medyana