Sign up for E-Blast

View Sample
Managed by: SMEC

Land Acquisition Funds for Becakayu Toll Road to be Disbursed

JAKARTA - The government is committed to disburse the funds for land acquisition in Bekasi - Cawang - Kampung Melayu (Becakayu) toll road. The funds amounting to Rp 378 billion represent  government support to improve the financial viability of the toll road. The funds will be disbursed in the 2012 State Budget (APBN).

"The funds are sourced from the special allocation fund (DAK) for land acquisition in the Directorate General of Bina Marga (Highways), which has been budgeted at approximately Rp 1 trillion for 2012. Thus, the needed funds for this toll road have been prepared through the budget of Bina Marga, and even it has become one of our priorities," said Director General of Bina Marga of the Ministry of Public Works (PU), Djoko Murjanto, in Jakarta, Tuesday (1 November).

Funding for land acquisition will be disbursed in stages, according to the conditions of lands that are ready to be paid for on the field. The Rp 378 billion funds can be utilised within one fiscal year or more. "The level of difficulty of land acquisition in the Becakayu segment helps determine the needed funds to be taken from Bina Marga. Moreover, the budget of Rp 1 trillion is mainly used for land acquisition in all toll roads in Indonesia during 2012," he added.

Djoko said that the government’s support for the Becakayu toll road is given following the swelling of the project’s investment cost, from Rp 6 trillion to Rp 7.15 trillion, after the evaluation.

PPJT Preparation
Meanwhile, Head of the Toll Road Regulatory Agency (BPJT), Achmad Gani Ghazaly, said that the agreement on funding support from Bina Marga is opening subsequent processes of the project. "So, the process of preparing for the signing of the amended toll road concession agreement (PPJT) can be carried out. We hope that the PPJT amendment can be soon finalised, although the government’s funding support will only be disbursed next year," he explained.

Before the amendment is signed, the company is encouraged to promptly complete all the required paperwork and the overall concept of project implementation. The land acquisition can also be done in parallel with the construction preparations.

Contacted separately, Head of the Design and Operations Division of PT Kresna Kusuma Dyandra Marga (KKDM), Didik Hari Wilopo, expressed hope that the government will actually disburse the land acquisition funds soon, so that the construction can be expedited. KKDM is the concession holder for the Becakayu toll road.

"Moreover, the support commitment is already incorporated in the government’s evaluation revision of Becakayu toll road. The government’s support is intended to minimise the investment risk borne by the investor[s], following the hike in the investment cost via-a-vis the initial contract estimate," he explained.

Didik added that the company is ready to sign the PPJT amendment contract. Moreover, BPJT in principle has approved the amendment plan, so it is a matter of fulfilling the administrative requirements. (imm)