President Jokowi Calls for Acceleration in Construction of Trans-Sumatra and Cisumdawu Toll Roads
Date 7 Juli 2020
President Joko “Jokowi” Widodo on Tuesday (7/7) chaired a Limited Cabinet Meeting on the Acceleration of the National Strategic Project Development for the trans-Sumatra and the Cileunyi-Sumedang-Dawuan (Cisumdawu) Toll Road
“The acceleration of the 2,765 kilometers trans-Sumatra Toll Road project aims to speed up our national economic recovery,” President Jokowi said in his remarks at the Merdeka Palace, Jakarta.
The President expressed his hope that the construction of the toll road can boost economic growth and economic equality in Sumatra Island, which is expected to bring a large multiplier effect and efficiency to the country’s Gross Domestic Product (GDP).
For that reason, the President highlighted a number of things. They are as follows:
First, the trans-Sumatra Toll Road is estimated to cost about Rp476 trillion. “Of the total investment, the Government will still require Rp386 trillion to complete the construction of its backbone sections by 2024.” the President said.
On that occasion, the President ordered his ministers to carefully calculate financial viability as well as additional options of equity to continue the project. “I ask for a breakthrough in the form of alternative funding sources to reduce the burden of equity from state capital injections and to lower dependence on the state budget,” he said.
Second, regarding the construction of the Cisumdawu Toll Road, the President noticed that the process of returning bailouts and land acquisition was hampered on the ground due to administrative issues.
“I order Ministry of Agrarian and Spatial Planning (ATR)/ National Land Agency (BPN) to resolve the issue immediately. There are also incomplete technical regulations in both Ministry of Agrarian and Spatial Planning (ATR)/ National Land Agency (BPN) and Ministry of Finance,” the President said, adding that the toll road project is also related to Kertajati Airport project.
At the end of his remarks, the President said that there is still no permanent solution for technical regulations and administrative procedure issues. “We always solve the issue case by case. I think we should simplify the regulations that are more concise and quicker,” the President concluded. (TGH / EN)
Translated by: Syarifah Aisyah
Reviewed by: Yuyu Mulyani