"We fully support the construction of toll roads there."
Jakarta (ANTARA News) - Finance Minister Agus Martowardojo has supported the proposal to speed up the construction of Trans-Sumatra toll roads, expressing hope that state-owned toll road firm PT Hutama Karya would take the initiative.

"We fully support the construction of toll roads there," he said here on Friday.

Agus stated that there were several alternatives for PT Hutama Karya a state company set up to implement infrastructure projects to finance the toll road projects.

"The alternatives include the options of offering state capital investment, or issuing bonds, either by the government or by PT Hutama Karya itself," he pointed out.

Therefore, the minister called for a feasibility study on the toll road, which would connect Banda Aceh in the western tip of Sumatra to Bakauheuni in the eastern end of the island. He also expressed hope that the project would begin this year.

"We will support it all, but it would be better if PT Hutama Karya could conduct a feasibility study. That way, we could coordinate better with the government and also with the Toll Road Regulator Agency (BPJI) on the issue," Agus continued.

He stated that the construction of the Trans-Sumatra toll roads could be completed sooner if it was supported by good planning and a feasibility study.

The minister admitted that the toll roads would be beneficial in the long run because they would improve regional connectivity and boost economic activities.

"We want the Sumatran toll road construction to be completed soon so the economy could be improved further. Therefore, I would suggest that the feasibility study should be conducted and coordination must be made. However, there is the need to get some clarity from the BPJT on the matter," Agus added.

He expressed hope that the government regulation (PP) on assigning Trans-Sumatran toll road projects to PT Hutama Karya would be issued this month.

"The assignment has been given to PT Hutama Karaya because the project`s internal rate of return (IRR) was only about 6-13 percent," Agus explained.

"With the new government regulation, PT Hutama Karya could change its line of business from being a state-owned construction firm to becoming a toll road operator as long as it does not issue an initial public offering (IPO)," he added.

In the first phase, PT Hutama Karya will build the 16-km-long Medan-Binjai road section, worth Rp3.4 trillion. In doing this project, it will establish the PT Hutama Prasarana Nusantara subsidiary.

In order to develop the subsidiary, PT Hutama Karya will cooperate with state-owned plantation firms PT Perkebunan Nusantara II, III and IV, as well with the North Sumatra regional government company, PT Pembangunan Prasarana Sumatera Utara.
(Uu.A014/INE/KR-BSR/B003)

Editor: Priyambodo RH
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