For the Trans-Sumatra toll road, the President has given us directions to complete itBekasi, Jawa Barat (ANTARA) - Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan has invited US investors to invest in the Trans-Sumatra Toll Road.
"Yesterday, when the US Secretary of State, Antony Blinken, came, I told him, if you are serious about helping, help (build the Trans-Sumatra Toll Road)," the minister said here on Friday.
He, however, did not specify the Trans-Sumatra toll projects he had invited investment in. The prospect of toll road investment in Indonesia in the eyes of foreign investors is quite good, he remarked.
"For the Trans-Sumatra toll road, the President has given us directions to complete it," he said
Currently, some sections of the Trans-Sumatra toll road are running all the way to Betung, Medan, and then to Parapat and from Medan to Aceh, Pandjaitan noted.
Related news: Minister outlines schemes to bring investment in car batteries
Earlier, PT Hutama Karya (Persero) had prepared a strategy to accelerate the construction of the Trans-Sumatra toll road, he noted.
Apart from focusing on the first phase of the Trans-Sumatra toll road construction of eight sections, president director of Hutama Karya, Budi Harto, said the company has also accelerated the completion of designs and land acquisition for other sections.
In addition, Hutama Karya affirmed the importance of using new technology, saying it would make future construction works more efficient.
The company is also ready to support Turkey's investment interest in the Trans-Sumatra toll road, Harto said.
The construction of the 11 priority segments that will make up the Trans-Sumatra toll road system would be economically advantageous for the country, particularly Sumatra province, according to state-run infrastructure financing firm, PT Sarana Multi Infrastruktur (SMI).
Related news: Merah Putih Fund will establish new, nationalist ecosystem: Thohir
"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 an additional Rp257 trillion (around US$17.7 billion) — would potentially generate Rp768 trillion (around US$52.9 billion) by 2033, she projected.
Related news: G20 success will open investment opportunities for Indonesia: official
"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 jobs for 671 thousand people annually, or equal to 2.4 percent 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), she informed.
Related news: President Jokowi officializes new office of Indonesian Mosque Council
Related news: President sends letter on ITE law amendment to parliament
Translator: Aji C, Azis Kurmala
Editor: Fardah Assegaf
Copyright © ANTARA 2021
