"This conclusion has been made based on an analysis of the economic impact of the construction of the 11 segments of the Trans-Sumatra toll road on the national economy," PT SMI's director of financing and investment, Sylvi J. Gani, said during a discussion with officials from the Finance Ministry in Jakarta on Friday.
The Rp452-trillion (around US$31 billion) stimulus — Rp195 trillion (around US$13.4 billion) for the construction phase and Rp257 trillion (around US$17.7 billion) — would potentially generate Rp768 trillion (around US$52.9 billion) by 2033, she said.
"The potential output would have a multiplier effect of 1.7 times for the national economy, with potential income from the Trans-Sumatra toll road reaching Rp51 trillion (around US$3.5 billion) annually, around 2.2 percent of Sumatra's gross regional domestic product," she explained.
The construction of the Trans-Sumatra toll road would increase potential household income to Rp119 trillion (around US$8.2 billion) and create job opportunities for 671 thousand people annually, which is equal to 2.4 per cent of the entire workforce in Sumatra, she added.
PT SMI, a state-owned company that specializes in construction financing, has financed the construction of four segments of the Trans-Sumatra toll road — Medan-Binjai (North Sumatra), Terbanggi Besar-Pematang Panggang-Kayu Agung (Lampung-South Sumatra), Bakauheni-Terbanggi Besar (Lampung), and Palembang-Indralaya (South Sumatra) segments, she informed.
The company invested Rp500 billion (around US$34.5 million) under a loan agreement for the construction of the Medan-Binjai toll road segment and invested Rp1.24 trillion (around US$85.5 million) for the construction of the Palembang-Indralaya toll road segment, Gani said.
The four toll road segments financed by the company would increase potential household income to Rp18 trillion (around US$1.24 billion) and create job opportunities for 118 thousand people annually, she projected.
The four toll road segments would contribute to the national economy by creating a potential output of Rp129 trillion (around US$8.9 billion) by 2033, from the initial stimulus value of 70 billion, she said.
The Trans-Sumatra toll road would benefit multiple economic sectors in Sumatra, she added.
PT SMI pegged the potential benefit for the construction sector at 54 percent, the processing industry sector at 22 percent, the mining industry sector at 8 percent, large-scale trade 6 percent, and transportation and shipping at 3 percent.
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Translator: Astrid FH, Nabil Ihsan
Editor: Sri Haryati
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