Prices are too high due to expensive logistics costs.Jakarta (ANTARA) - The 11.8-kilometer Binjai-Stabat toll road section in North Sumatra will cut short the travel time and reduce logistics costs by up to 75 percent, President Joko Widodo (Jokowi) stated.
The lower logistics costs would reduce the price of commodities produced in the region, thereby improving its competitiveness, the president noted at the inauguration of the Binjai-Sabat toll road in Langkat District, North Sumatra, on Friday.
"We often lose out in the competition with imported goods, as our prices are too high. Prices are too high due to the expensive logistics costs," he remarked.
Jokowi drew attention to the production of oranges from Karo District.
"Once the roads were repaired, logistics and transportation costs fell by 75 percent," he pointed out.
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Karo District, as an orange production center, is expected to benefit from the toll road, and as a result, the district's flagship commodity could compete with the imported oranges, the president remarked.
In addition to agriculture, the tourism sector can benefit from the construction of the toll road.
The president noted that the toll road managed by state-owned construction firm PT Hutama Karya (Persero) will also ease access to tourist destinations in North Sumatra.
"The road will also facilitate access to various tourist destinations in North Sumatra, such as the tourist areas of Bukit Lawang, Tangkahan, and Tuan Guru spiritual tourism area in Tanjung Pura Langkat. This is a good opportunity to develop the potential of the regions,” he remarked.
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The Binjai-Stabat toll road is directly connected to the Medan-Binjai toll road that is already operational. The toll road will cut short the travel time from Stabat in Langkat District to Kualanamu Airport, from two hours to approximately 45 minutes.
The Binjai-Stabat toll road is section 1 of the Binjai-Langsa toll road.
The Binjai-Langsa toll road comprises five sections: section 1 Binjai-Stabat (11.8 km); section 2 Stabat-Tj. Pura (26.2 km); section 3 Tj. Pura-P. Brandan (18 km); section 4 P. Brandan-K. Simpang (44.2 km), and section 5 K. Simpang-Langsa (29 km).
After all sections are connected, the toll road will connect the provinces of North Sumatra and Aceh, as part of the Trans Sumatra toll road that connects Lampung to Aceh.
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Translator: Mentari Dwi Gayati, Sri Haryat
Editor: Fardah Assegaf
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