Jakarta (ANTARA News) - State-owned road construction firm PT Hutama Karya has announced that the construction of Trans-Sumatra toll road will begin by March 2013.

"The first phase of construction will cover 300 kilometres," PT Hutama Karya President Director Tri Widjajanto said after attending a "State-Owned Companies Marketeers Club" function here on Friday.

The first phase of the 2,000-km-long toll roads, which will stretch from Lampung province in southern Sumatra to Aceh province in the northern tip of the island, will cover the Medan-Binjai and the Palembang-Indralay sections, he stated.

"As of now, these are the sections most likely to be developed in phase one, Tri added.

He said Hutama Karya would carry out the project in cooperation with PT Perkebunan Nusantra (PTPN).

However, Tri refused to provide details about the expenses that will be incurred during the construction of the first phase of the project.

"Besides, we hope to get funds from the state capital participation (PMN) programme," he said.

"The funds needed for the construction project are still being calculated by the consortium, but we will also rely on the government`s support in the form of PMN," Tri added.

Hutama Karya will seek Rp5 trillion in funds from PMN, according to its 2013 corporate work plan.

It was previously reported that the construction of the Trans-Sumatra toll road would cost approximately Rp300 trillion.

The 2,000 km toll road will not use the existing roads and will therefore not need relocation of houses, said Subagyo, a director at the public works ministry.

The total cost of the project will not be as high as many think, because it will be developed over plantation land and unused land, mostly belonging to the state, he explained.

"Besides, other plantation companies will also be more than eager to offer a small part of their land for the project, as it would greatly facilitate the transport of their commodities," Subagyo pointed out.

In Java, constructing toll roads can often be a difficult and expensive affair because of land clearance issues, he noted.

"However, we have submitted a proposal, under the toll road construction programme, suggesting the use of unoccupied land only," Subagyo stated.

He said the government`s Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI) would significantly boost the local economy of Sumatra by 2025.

Earlier, the government had announced that the Trans-Sumatra toll road would be ready by the time the construction of Sunda Strait Bridge (which will connect Sumatra and Java) is completed.

The 30-km-long bridge is expected to be ready in 10 years` time. (A014/INE/ BSR/S012)

Editor: Kunto Wibisono
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