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Sumsel to Develop a 137km Toll Road Soon

Markmore Labuan and Prodexim to Establish a Joint Venture 

By Zufrizal

JAKARTA: Malaysian company Markmore Labuan Ltd, and regional company of the South Sumatera Provincial Government Prodexim, have signed a Head of Agreement (HoA) on the 137km-long toll road development in the province.

The signing of HoA, as quoted in the press release of the Public Relations of the Provincial Government of South Sumatera (Sumsel), was entered into by Chairperson of Markmore Labuan Ltd Datok Tansri Halim bin Saat, together with President Director of Prodexim Muchlis, in the Building of the Investment Coordinating Board (BKPM) in Jakarta, yesterday.

The project signing was witnessed by Governor of Sumsel Alex Noerdin, Regent of Ogan Komering Ilir (OKI) Ishak Mekki and Regent of Banyuasin Amiruddin Inoed, as well as the Deputy for Investment Implementation Control of BKPM Azhar Lubis.

This Rp 7 trillion - Rp 8 trillion worth infrastructure mega project, which will be built from Kayu Agung (OKI) through Betung Banyuasin, is claimed to be the longest toll road outside Java and the second toll road in Sumatera after North Sumatera.

“The development of this 137km toll road will be implemented by PT Sriwijaya Markmore Persada, which constitutes a joint venture between Markmore Labuan Ltd and PD Prodexim,” said Governor of Sumsel Alex Noerdin in his speech of welcome.

Central Government Support 
Therefore, he expected that the central government through BKPM could extend support in the form of licensing finalisation so that the implementation of the toll road development could commence immediately. 

According to Alex, President Susilo Bambang Yudhoyono and Malaysian Prime Minister will launch this project on 10 November, 2011, i.e. one day prior to the opening of Sea Games XXVI.

Governor of Sumsel revealed that the 137km-long toll road development is divided into several sections, namely 37km-long Kayu Agung - Jakabaring (Palembang ring road), 42km-long Jakabaring - Alang Alang Lebar, and 58km-long Alang Alang Lebar - Betung.

On another occasion, Alex explained that the 37km-long first phase of the toll road development could commence immediately, considering the fact that its land procurement has been finished, pending licensing.

Meanwhile, Deputy for Investment Implementation Control of BKPM Azhar Lubis said that his party will fully support the road infrastructure development process in Sumsel, including its licensing. 

According to Azhar, what BKPM will do is a must because the toll road development project is a sector of investment which constitutes his area of responsibility. He promised to immediately report the signing of this HoA to the Head of BKPM Gita Wirjawan. 

With regard to investment and task division for the toll road development, Ekubang (Finance and Development) Assistant to Sumsel Provincial Government Eddy Hermanto explained that the issue will be raised in the subsequent meeting after the signing of HoA. According to him, the investment of Markmore Labuan Ltd in the sector of road infrastructure development in Sumsel constitutes the first one. 

Previously,  Governor of Sumsel said that the Malaysian investor had turned out to be interested not only in carrying out the first phase (Jakabaring - Indralaya - Kayuagung) of the toll road development, but also the second phase to connect the 123km-long Jakabaring - Alang Alang Lebar - Betung. 

He admitted that the toll road is still under discussion between the Provincial Government and the Malaysian investor. However, he did not provide any details as to when the toll road development will be realised, nor mention the source of its funding. (Bisnis, 19 July) (zufrizal@bisnis.co.id)

Kayu Agung - Betung Toll Road Project

Segment Length (km)
Kayu Agung - Jakabaring 37
Jakabaring - Alang Alang Lebar 42
Alang Alang Lebar - Betung 58

Source: South Sumatera Provincial Government