Jokowi seeks alternative funding sources for Trans-Sumatra highway

Jokowi seeks alternative funding sources for Trans-Sumatra highway

An aerial photo of the construction of Trans-Sumatra's Padang-Sicincin section in Padangpariaman District, West Java. ANTARA PHOTO/Iggoy el Fitra/aww.

Jakarta (ANTARA) - President Joko Widodo (Jokowi) has sought alternative sources of funding for construction of the Trans-Sumatra toll road to lower the burden of equity from state capital injections (PMN).

"I want to witness 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. This aspect must be underlined," the president stated at the opening of a limited meeting on accelerating the construction of the Trans-Sumatra and Cisumdawu toll roads at the Merdeka Palace, Jakarta, on Tuesday.

Jokowi remarked that the toll road, spanning a total length of 2,765 kilometers, is estimated to cost some Rp476 trillion (US$33.2 billion).

The government will still require Rp386 trillion to complete the construction of its backbone sections by 2024.

The head of state has sought feasible financial calculation and additional options of equity to continue work on the project.

Construction of the Trans-Sumatra and Cisumdawu toll roads is expected to boost the economy in the regions.

The Trans-Sumatra Toll Road is an under-construction tolled expressway spanning across Sumatra Island, from the northern tip of Banda Aceh to the southern tip of Bakauheni

Cisumdawu or Cileunyi-Sumedang-Dawuan Toll Road is a toll road in West Java that has two tunnels of length 472 meters each. This toll road will connect the Padaleunyi Toll Road with the Palimanan-Kanci Toll Road.

It will also connect Bandung with the Kertajati International Airport that was opened in 2018.  Related news: Ministry to prioritize connectivity of toll roads and industrial areas
Related news: Soldier securing Trans-Papua road project dies of shot wound: mily


 

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