Indonesia Doubling Transport Budget With $10 Billion Fuel Saving

Jakarta Globe, Sharon Chen,  Jan 05, 2015

Motorists ride their motorbikes between cars during rush hour on a main road
in Jakarta on Nov. 28, 2014. (EPA Photo/Mast Irham)

Jakarta. Indonesia will save about $10 billion from the biggest overhaul of its decades-old fuel subsidy system, allowing the government to double spending on transportation, agriculture and public works, the energy minister said.

The finance ministry estimates that at least 120 trillion rupiah ($10 billion) in savings will be made this year, and the number will increase in coming years, said Energy and Mineral Resources Minister Sudirman Said in a Bloomberg Television interview with Angie Lau on Monday.

“What happened is shifting the subsidy from consumption into more productive spending,” the minister said.

“Because of the policy this year 2015, the public works, the transportation sector and the agriculture will double the capital expenditure budget.”

President Joko Widodo scrapped the subsidy for gasoline on Jan. 1 and capped the amount of aid for diesel, joining India and Malaysia in taking advantage of plunging oil prices to wean their nations off government subsidized fuel. Indonesia had been subsidizing fuel since the first oil price shock in the 1970s and kept prices at less than $0.20 per liter until 2005, according to a World Bank report published in March.

The government plans to double spending on transportation from last year, according to Said. The budget for public works such as roads, housing and irrigation will be more than twice the original allocation and more money will be set aside for farmers and the agriculture sector, he said. Building infrastructure for the oil and gas industry and electricity will be part of the government’s focus this year, he said.

Dismantling the subsidy program is a political hot potato — protests accompanied past price increases and riots spurred by soaring living costs helped oust dictator Suharto in 1998.

“The challenge would be of course the response from the public, but I have confidence that if we communicate well, then they will understand” and in the longer term it is going to be a much better budget structure, the minister said.

Bloomberg

Beijing looks to cooperate with Asian nations for mutual gains

Want China Times, Staff Reporter 2013-10-21

Buses on the first Sino-Vietnam highway, which links southwest China's
Yunnan province and Vietnam. (Photo/Xinhua)

China is pushing for cooperation with Southeast Asian nations in infrastructural investments to foster closer links with the regional economy, reports Beijing's Economic Observer.

During a meeting with Indonesian president Susilo Bambang Yudhoyono in Jakarta in early October, China's president Xi Jinping proposed the establishment of an "Asian infrastructural investment bank," aiming to fund infrastructural projects between Association of Southeast Asian Nations (ASEAN) member nations and other countries in the region.

China's premier Li Keqiang, meanwhile, expressed China's willingness to deepen relations and cooperate with countries in the region during his Oct. 9-15 trip to Brunei, Thailand, and Vietnam. He also announced plans to build a high-speed rail reaching Southeast Asia.

"Once the projected China-South Asia hi-speed rail is built, all the way to Singapore, trading activities and logistics operations will emerge along the route," said Wang Yigui, a professor from the School of International Studies at Beijing's Renmin University of China. Wang added that Southeast Asia has a great need for infrastructural investments, which can be a powerful driver for their economies amid the global economic slowdown.

Indonesian president Susilo Bambang Yudhoyono responded enthusiastically to the Chinese overture, saying during the recent Asian Pacific Economic Cooperation (APEC) summit on Oct. 6, that heavy infrastructural investments are needed to improve a low-efficiency supply chain and facilitate cross-border trade and services, which would not only stimulate the economy but also create jobs.

James Gagne, CEO of Agility Logistics, said the company has scored a 10% growth in emerging markets in recent years, much higher than the industry average, attributing the exceptional performance to marked improvement in infrastructural facilities in Southeast Asia.

Many economists and entrepreneurs believe infrastructural facilities will be a major growth driver for emerging markets in coming years. Hemant Kanoria, managing director of the India-based SREI Infrastructure Finance, said that India has a great need for investment in such infrastructural facilities as highways, power, and water supply. He added that there is a funding shortfall of US$18 billion this year, an opportunity which has caught the eyes of private equity funds worldwide.

Meanwhile, other East Asian nations, such as Cambodia, are also in dire need of infrastructural investments, forming a favorable setting for the establishment of the Asian infrastructural investment bank, according to Li Wei, also a Renmin University of China professor.

Observers are upbeat over cooperation between China and Asian nations in infrastructure project, as the former has a need for overseas investments due to its huge forex reserves and overcapacities, while the latter are actively seeking foreign investment in infrastructural facilities in a bid to invigorate the economy, create jobs, and create an improved setting for external trade, the paper said.

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Angry minister becomes Twitter trending topic

Sita W. Dewi, The Jakarta Post, Jakarta, Tue, 03/20/2012

State-Owned Enterprises Minister Dahlan Iskan’s move of exiting his car, which was stuck in a long queue backed up in front of a Jakarta toll gate, forcefully opening the gates of two unattended toll lanes and allowing 100 vehicles to drive through for free on Monday morning has stirred up a deal of public attention.

The minister also reportedly reprimanded state-owned toll operator PT Jasa Marga’s top management shortly after the incident.

The keyword “Dahlan Iskan” is now being named as one of the trending topics in Indonesia on Twitter today. Most of the tweets praised the minister’s move -- some of them even encouraged the media mogul to run for president in 2014.

“Mr. Dahlan Iskan FTW! He’s so cool! All public officials should have done this!” said account @jojosuherman.

Noted composer Addie MS posted on Twitter: “Dahlan Iskan let cars pass without paying toll fees to break the long queues, and reprimanded Jasa Marga’s executive director soon after. [The director] deserved that!”

Meanwhile, account @adjisdoaibu questioned the minister’s actions, asking, “Why did he do that? Couldn’t he wait? Would he be as angry as that if the queue had been caused by the President’s motorcade?”

On his Twitter account, Dahlan said he was not furious; he only wanted to break the frustrating traffic congestion.

The minister was on his way to a meeting at national flag carrier Garuda Indonesia’s office when he got caught in a line of about 30 cars waiting to enter the Semanggi toll gate in Slipi, West Jakarta at around 6 a.m.

“I was not only angry, I was extremely furious,” he was quoted as saying this morning.

Govt to allocate Rp16.68 trillion for road repair

Antara News, Wednesday, December 30, 2009 00:15 WIB

Jakarta (ANTARA News) - The government is preparing a budget amounting to Rp16.65 trillion for road and bridge repairs in 2010, down from the previous year`s allocation of Rp18.64 trillion, a deputy minister said.

Deputy Minister for Public Works Hermanto Dardak said here on Tuesday that of the 2010 year allocation, Rp1.34 trillion would be used to finance repair of 1,477 km highways in northern coasts of Java.

"The highways in the coast of Java get the biggest allocation of the funds because they constitute the backbone of the nation`s transportation and economic distribution," Hermanto said.

He said that the government would also allocate Rp373.26 billion for the repair of 1,186 km of Java`s central axis roads and Rp224.33 billion for the 1,132 km southern Java lanes.

In Sumatra, according to Hermanto, the allocation that would be provided for the 2,805 km eastern trans-Sumatra highways amounted to Rp848.79 billion, the 2,540 km central trans-Sumatra Rp543.06 billion and the Sumatran 2,493 km western lanes Rp418.68 billion.

"We have set a target that in 2014 the whole trans-Sumatran highways would have a width of seven meters,," he said.

The road repair in Kalimantan in 2010 will included the 3,408 km southern highways with allocation of Rp996.89 billion, the 1,900 km central highways with Rp232.63 billion and the 1,557 km northern ones with a fund allocation of Rp192.66 billion.

In Sulawesi, the allocation for the 2.099 km western highways is set at Rp943.98 billion, the 2,346 km central highways Rp 495.03 billion and the 2,054 km western roads amounted to Rp228.93 billion.

In Papua, the government will provide Rp980 billion for 2,060 km strategic roads and Rp460.21 billion for other 1,038 km other roads.

Hermanto said that the government also targeted that in 2014 about 95 percent of national roads in the country would have been in good condition.

Unprecedented infrastructure development?

The Jakarta Post, Rendi A. Wintular, Jakarta, Mon, 12/21/2009 11:52 AM, Review & Outlook

JP/R. Berto Wedhatama

For the government’s economic team, 2010 will be a decisive year to demonstrate its competence in settling the accumulation of five years of homework resolving the protracted problems that are stifling infrastructure development.

A set of policies aimed at expediting key infrastructure projects, notably highway and power projects, were unveiled in late October for all levels of government to work on.

Among the policies widely expected next year is a revision of a 2006 presidential decree on land clearance for public interest and a law on the revocation of land ownership rights.

According to Public Works Minister Djoko Kirmanto earlier this month, a revision to the presidential decree would include the halving of the land price negotiation period from 120 days to 60 days. The private sector will also be allowed to start construction of government-initiated projects as soon as 51 percent of the required land has been cleared.

Djoko is optimistic that all land-purchase policies, especially those for toll road projects, can be passed by the end of January. However, revisions to land clearance laws, he said, would take longer as they would need to be deliberated among lawmakers.

According to Djoko, the government’s negotiation team for land clearance will also be overhauled because its members are made up of incompetent officials working for local administrations.

Most infrastructure projects have hit roadblocks as landowners refuse to sell their land at market prices, demanding prices that often reach irrational levels.

Of the 1,000 kilometers of toll road projects linking the Eastern and Western tips of Java, planned in 2004, only around 40 kilometers have been constructed thus far, according to the Public Works Ministry.

The Central Statistics Agency reveals growth in highway capacity, excluding toll roads, only reached an average of 3 percent annually between 2002 and 2007.

As of the end of 2007, Indonesia only has 421,535 kilometers of road linking its 1.91 million square-kilometers of land.

Analysts have voiced concerns that limited highway capacity — including toll roads — has already created a bottleneck in logistics and distribution of goods, undermining the nation’s competitiveness.

In order for the private sector to feel secure in building more highways, toll roads and power plants, the government is slated to form a company next year that will cover all risks when participating in government-initiated infrastructure projects.

The company, dubbed as PT Penjamin Infrastruktur Indonesia, will function as an insurer to any risk exposed to the private sector.

The company will complement the already established state-run financing company PT Sarana Multi Infrastruktur in managing the construction of infrastructure.

Aside from highway and toll road projects, the government has also pledged to accelerate the development of its first and second phases of 10,000-megawatt (MW) power plants.

Nearly half of the projects included in the first phase could be ready by the second half of 2010, falling short of the target of being entirely operational in 2009.

Among the policies proposed to accelerate construction is a revision to a set of regulations that will eventually enable state-run power company PT Perusahaan Listrik Negara (PLN) to have flexibility in determining the electricity prices purchased from independent power producers (IPPs).

Under the existing regulations, the government is setting a price cap for PLN when negotiating an electricity purchase with the private sector, regardless any impact from inflation and unexpected soaring costs of plant construction.

According to the Energy and Mineral Resources Ministry, only 18 percent of 50 private companies willing to construct power plants have so far secured a deal with PLN and licenses from the government.

Due to the difficulties, several resource-rich provinces are currently under a protracted plague of electricity shortage.

Aside from limited electricity supplies, the business community is also concerned with interruptions in power distribution due to PLN’s already overstretched facilities.

The company, which has a monopoly in electricity distribution, has recently suffered problems in its storage and transmission networks, which has resulted in rotating blackouts in many parts of the country, most notably in Greater Jakarta.

PLN will need an investment of US$933 million to overhaul and expand its transmission networks next year, according to the company’s president director Fahmi Mochtar.

The company, he said, could only provide 78 percent of the funds, with sourcing for the outstanding amount still being worked out.

Critics have said problems in the company’s sagging facilities had actually been noticed by policy makers as long as five years ago. However, no measures have been proposed.

A combination of stiff bureaucratic mentality and poor coordination among ministries and agencies have contributed to sluggish infrastructure development.

Doubts are lingering in the business community over the ability of economic ministers and bureaucrats to resolve the coordination problems, exacerbated by overlapping regulations.

Several key policies to watch for:

1. Policy synchronization for spatial planning.
2. Revision in land clearance regulations and laws.
3. Reform at the National Land Agency.
4. The forming of the risk-mitigating company for infrastructure PT Penjamin Infrastruktur Indonesia.
5. Regulation issued on forest conversion.
6. Revision to government regulations on the use of idle land.
7. Revision to government and ministerial regulations to increase the portion of coal allocated for the domestic market.
8. Revision to regulations related to PLN’s purchase of electricity from the private sector.

Source: The Office of the Coordinating Minister for the Economy

The author is a staff writer at The Jakarta Post.

Java Toll Road Gets $498m Loan

The Jakarta Globe, Ardian Wibisono

Toll roads are "strategic infrastructure that have a multiplier effect on economic development," according to the head of BNI bank. (JG Photo/Yudhi Sukma Wijaya)

Agroup of domestic banks announced on Friday that it would lend PT Trans Marga Jateng Rp 4.7 trillion ($498 million) to help finance construction of part of the Trans-Java toll road.

“Toll roads are strategic infrastructure that have a multiplier effect on economic development,” said Gatot Soewondo, president director of PT Bank Negara Indonesia. PT Bank Mandiri, PT Bank Rakyat Indonesia and PT Bank Jateng are also taking part in the loan, which carries 13 percent interest and a 13-year term.

Trans Marga Jateng, a joint venture between state toll road operator PT Jasa Marga and the regional government-owned PT Sarana Pembangunan Jawa Tengah, said the loan would be used to build the 76-kilometer Semarang-Solo toll road, which has a total project value of Rp 6.83 trillion.

Agus Suharyanto, Trans Marga Jateng’s president director, said the toll road would consist of five sections, with construction of the 10.9-km Semarang-Ungaran section already under way.

“For the first section, we estimate construction costs will be Rp 1 trillion,” he said, adding that the stretch should start operating late next year.

“We also hope to begin construction of the section linking Ungaran and Bawen next year,” Agus said.

He said the main obstacle to any toll-road project was land clearance, adding that he hoped the government could speed up the process.

Takeshi Murakami, a senior consultant at Japan’s Nomura Research Institute, said the slow pace of infrastructure development, including roadways, was a major hurdle for Indonesian economic growth.

He said there had been little progress toward the goals laid out during a national infrastructure summit in 2005.

The summit called for 1,700 kilometers of toll roads to be built between 2005 and 2010. However, only 43 kilometers had been built by the end of September, according to Fatchur Rochman, head of the Indonesian Chamber of Commerce and Industry’s toll-road development committee.

Anton Gunawan, an economist at PT Bank Danamon, said inadequate infrastructure was also causing higher inflation because poor highways made goods more expensive to transport.

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New Toll Roads Approved for Jakarta; Private Sector to Fill Funding Shortfall

Electronic toll collection system introduced as of January 2009

Jakarta,  (ANTARA News) - Some toll roads in Jakarta will start using the Electronic Toll Collection (ETC) system starting the third week of January 2009. 

"So far, the simulation of using the system has been held in some toll roads. The system is expected to be used publicly starting the third week of January 2009," operations director of toll road operator PT Jasa Marga, Adityawarman, said on Friday. 

The operators involved in the new toll payment system are PT. Jasa Marga, PT. Citra Marga Nusapala Persada, PT. Marga Mandala Sakti and PT. Bintaro Serpong Damai. 

The preparations have been done by each of the operators. Some 20 from a total 40 soon-to-be-installed equipment have been installed for the city`s inner ring roads. 

"We have installed the devices at the Cililitan and Semanggi toll gates, to name some," he added. 

The total 400 equipment will be installed by the end of January 2009 and in the third week of the month, the system can be used publicly. 

The use of the electronic cards, said Adityawarman, is to shorthen transactions from seven to four seconds. 

As for other toll road routes, like the Jakarta-Cikampek and Jakarta-Ciawi toll roads, the use of the system is still waiting for the open system.

LET THERE BE ROADS

The Jakarta Post | Wed, 12/24/2008 7:35 AM 

 

 

Workers complete the extension road along the Cikarang-Cikampek tollroad in Bekasi on Tuesday. The extension is expected to ease the heavy traffic on this major artery of Java. (JP/J. Adiguna)

Govt to build Cinere-Jagorawi toll road in 2009

The Jakarta Post, Depok | Fri, 12/19/2008 6:52 PM  

Next month, the Public Works Ministry is set to commence construction of a toll road between Cinere and Jagorawi, with residential land acquisition and clearing almost complete, a ministry official says. 

The planned road would connect Cinere of South Jakarta with neighboring cities including Bogor, Tangerang and Bekasi. 

The ministry's land acquisition team leader, Sugandhi, told tempointeraktif.com on Friday that construction would commence in Harjamukti village, Depok. 

"We have cleared the land, built culverts and brought in some heavy equipment," Sugandhi said. 

The ministry is still in the process of paying compensation to residents of Harjamukti, Cisalak Pasar and Curug villages, he said. 

"We have completed 90 percent of the payments -- worth some Rp 334 billion (US$ 27,8 million) -- for 791 plots of land," he said, adding that on Friday the ministry had paid out Rp 10.2 billion to village residents for 0.8 hectares of land. (ewd)

New airport lanes cut travel time

Triwik Kurniasari, The Jakarta Post, Jakarta | Tue, 12/02/2008 10:39 AM

On the first day of the operation of the newly constructed airport toll road lanes, commuters Monday enjoyed shorter travel times to Soekarno Hatta International Airport.

Airport toll road operator PT Jasa Marga opened the two new lanes, adding to the two existing lanes, to motorists at 7 a.m. Monday.

The old lanes are for those heading to the airport, while the new ones on the left are designed for those heading to Kamal, Meruya and Daan Mogot in West Jakarta.

As a result of construction, the airport toll road has been widened and elevated in parts.

The toll road now splits after Kapuk toll gate.

"This morning, it took about 45 minutes from Blok M (South Jakarta) to the airport. Previously, it took more than one hour," Samin, an airport bus driver, told The Jakarta Post.

"I used to get caught in traffic during peak hours because motorists heading for Kamal or Meruya blocked the road. Now, the condition is much better," he said.

Samin's fellow bus driver, Jon Henri, agreed.

"During today's rush hours, the traffic to the airport was smoother than before. I hope that the elevated road can also prevent flooding during the wet season," Jon said.

While the road to the airport was free from congestion, the other way around tended to be packed with motorists because the road is still under construction.

Jasa Marga corporate secretary Okke Marlina said the company was also erecting two more new lanes for the reverse road.

"We hope the construction will be finished by the end of this year," Okke said.

Jasa Marga started the project in March to prevent annual flood damage, which affects the airport toll road during the rainy season.

The toll road has been flooded a couple of times, paralyzing access to the airport and causing delays for passengers and the cancellation of flights.

The project, however, has been opposed by several environment NGOs, including the Indonesian Forum for the Environment (Walhi), the Indonesian Consumer Foundation (YLKI) and the Jakarta Legal Aid Institute (LBH).

They previously claimed the project, which led to the destruction of 19 hectares of mangrove forest, would worsen flooding in the capital and that the fishermen who rely on the forest for their livelihoods would suffer.

They also urged Jasa Marga to replace the destroyed mangrove forest by planting trees at nearby locations.

Okke said her company had prepared a plot of land to replace the destroyed mangrove forest.

Jakarta to plant 30,000 trees

The Jakarta Post, Jakarta | Sat, 11/29/2008 11:28 AM  

Jakarta Governor Fauzi Bowo planted a lobi-lobi tree in Srengseng city forest, Kembangan subdistrict, West Jakarta, at the launch of an ambitious planting project on Friday. 

"We need more trees, so we will cultivate them. We will plant 30,000 trees in Jakarta," Fauzi said. 

"It will take consistency and sustainable action to make this city greener." 

The project, powered by 300 volunteers, is sponsored by Jakarta Green Radio, the Medco Foundation, the Monfori Nusantara, the Bisnis Indonesia daily newspaper, and the Jakarta Green Monster organization. 

The volunteers planted a thousand trees in the 15-hectare-forest Srengsen forest. Most of tress planted are fruit trees seldom found in Jakarta, such as the cimpedak and kecapi. 

The launch comes as part of a massive national tree planting project, which will involve the planting and cultivation of more than 100 million trees throughout Indonesia. 

The Srengseng's forest is one of the largest green areas in the city. It is home to 26 species of birds and 68 kinds of trees. Besides this forest, Jakarta's green areas include the Suropati and Senayan parks. 

According to Fauzi, the city needs more green areas to reduce pollution and the impact of global warming. 

"Jakarta, which covers an area of 65,000 hectares, must allocate at least 14 percent of that space as green areas such as parks. Right now parks account for only 9.6 percent of the cities area," he said. 

Fauzi said that he was optimistic he could achieve this goal of expanding the city's green spaces. 

He also reminded Jakartans that they would have to change their way of thinking about how to use vacant lots in Jakarta. 

"Vacant land does not always have to be used for buildings; we must use more land for green areas. We don't need to repeat the mistakes we've made before." 

Authorities in Jakarta have made several efforts to re-green the city. The newest project involves buying five hectares of land along the tollroad to the Soekarno-Hatta International Airport, which will be used for a park.(naf)

Govt speeds up $10b Java Sumatra bridge

Oyos Saroso H.N., The Jakarta Post, Jakarta | Fri, 05/09/2008 9:38 AM

The government is slated to begin construction next year of the country's longest and most expensive bridge, linking Sumatra and Java islands, a year ahead of schedule.

Lampung Governor Sjachroedin Z.P. said Thursday the government would start work on the 29 kilometer bridge across the Sunda strait early in a bid to boost economic activities in Sumatra.

The bridge, connecting Bakauheni in Lampung with Merak in Banten, will cost about US$10 billion over the next 15 years, Sjachroedin said.

"All the governors in Sumatra want the development to begin soon and they expect it won't burden the government financially," he said, adding the bridge was expected to be operational by 2025.

Public Works Minister Djoko Kirmanto said the construction costs would be shouldered mainly by private investors, with the central government financing only 5 percent of the project.

"We will attract investors to finance the bridge development by offering them incentives," he said. (rff)

Jakarta to deliver on elevated roads plan

Mustaqim Adamrah, The Jakarta Post, Jakarta | Sat, 05/03/2008 11:14 AM

Despite criticism from urban and transportation experts, the city administration is moving forward with its plan to construct elevated roads, including six turnpikes, in the inner part of the city.

Deputy Governor Prijanto said the administration is setting up a special company, called PT Jakarta Toll Road Development, that would help garner 67 percent of Rp 40 trillion (US$4.34 billion) total investment to run the project.

The administration would control ownership in the new company through the city-owned construction firms PT Jakarta Propertindo and PT Pembangunan Jaya.

The remaining 33 percent of the project share would be offered in a public bidding.

"This (new) company has both the concept and the cash. So it has the right to own shares in the project," Prijanto said on Friday at the City Hall in Central Jakarta.

The administration plans to build more elevated roads to reduce traffic woes in the city. Ground-level road constructions are no longer feasible due to limited land availability in the city.

Transportation experts say the elevated roads project will not ease congestion in the city, and instead invite more cars and make traffic jams worse.

According to a survey by Japan International Cooperation Agency, the capital's streets will be paralyzed by 2014 due to rapid growth in the number of vehicles.

Chairman of the Indonesian Transportation Society, Bambang Susantono, said road construction would only be appropriate for the outskirts of the city.

"A good public transportation system is enough to link the inner part of the city. The administration and the central government should be consistent in developing it," he said.

Bambang said the Rp 40 trillion allocated to the project would be better spent in establishing a rail-based rapid transit system linking the eastern and western parts of the city.

However, the administration has scheduled road construction to begin next year in North Jakarta, along with the construction of a Mass Rapid Transit (MRT) construction in the southern part of Jakarta.

The Rp 8.3 trillion MRT project will stretch 14.3 kilometers from Lebak Bulus, South Jakarta, to Dukuh Atas, Central Jakarta and is expected to be finished in 2014.

Governor Fauzi Bowo said the administration had arranged for the two mega projects to be less disruptive to road networks in the city.

City to have more elevated roads as of next year

Mustaqim Adamrah , The Jakarta Post , Jakarta | Wed, 03/12/2008 11:55 AM

Governor Fauzi Bowo said Tuesday the capital would start a Rp 40 trillion (US$4.2 billion) project constructing elevated roads across all municipalities in Jakarta next year. Six toll roads are included in the project.

"We must understand that horizontal road expansion is no longer a favorable solution in easing traffic jams," he said at City Hall.

"Therefore, we have no other choice except to build more elevated roads."

He said elevated toll roads were also part of a plan to generate revenue for the city.

"We could use more revenue from toll roads to fund the development of other roads, as well as the development of an MRT, the monorail and the busway," said Fauzi.

The MRT (Mass Rapid Transit) is a rail system Jakarta has been planning since 1984. Plans to begin construction this year have again been delayed until 2010.

He said, however, more research was required to measure the impacts of the construction, such as congestion.

"Both the central government and the city administration agree road expansion on ground level will not solve transportation issues in the city," he said.

"But we can think of another way to solve traffic problems. We have to carefully decide the locations of the toll road exits and entrances in the design."

Wrong locations of toll road exits and entrances, Fauzi said, would create worse traffic jams.

He also said the money needed to fund the elevated roads project would come from the administration, the capital market, the money market and loan syndicates.

Fauzi said the city would start the toll road construction in North Jakarta because MRT construction was planned for the same time in the south.

The Rp 8.3 trillion ($913 million) MRT project will stretch 14.3 kilometers from Lebak Bulus, South Jakarta, to Dukuh Atas, Central Jakarta and is expected to be finished in 2014.

In addition, Fauzi said the design would also calculate increased air pollution resulting from road expansions that consequently encourage more people to use vehicles.

The six planned toll roads

1. Rawa Buaya, West Jakarta - Sunter, North Jakarta 18.6 km
2. Kemayoran, Central Jakarta - Kampung Melayu, East Jakarta 9.7 km
3. Pasar Minggu, South Jakarta - Casablanca, South Jakarta 9 km
4. Kampung Melayu, East Jakarta - Tomang, West Jakarta 12 km
5. Sunter, North Jakarta - Pulo Gebang, East Jakarta 12.5 km
6. Ulujami, South Jakarta - Tanah Abang, Central Jakarta 8.6 km
   
   
   

Wider Alternative Access Road to Soekarno-Hatta Airport

Thursday, 06 March, 2008 | 18:41 WIB

TEMPO Interactive, Tangerang:The Tangerang Municipal Government plans to widen Jalan Irigasi, Benda District, from 1.5 meters to 14 meters in order to improve the flow of traffic to Soekarno-Hatta airport.

This 1.5 kilometers long road connects Daan Mogot and Husein Sastranegara roads.

According to Dadang Durachman, Head of the Tangerang Municipal Government Planning Board, this proposal has already been submitted to the Banten Provincial Public Works Department.

The reason for widening this street is because the Sedyatmo toll road is flooded during the rainy season, leading to traffic jams.

People have been using Jalan Daan Mogot as an alternative route to reach the airport, but the road is too small.

If Jalan Daan Mogot is widened, then traffic between Jakarta and Tangerang towards Soekarno-Hatta Airport through Jalan Irigasi (AMD) alongside the flood canal, will flow better.

The construction of the new road will be connected to Jalan Irigasi, which was constructed last year over a length of 7km length and 7m in width.

During the construction, people going to the airport from Daan Mogot can use Jakan Halim Perdanakusuma.

Later on, it will be easier to use Jalan Irigasim which will be connected to the 14m wide Jalan Husein Sastranegara and Sedyatmo toll road, before entering the airport area through the airport main entry.

On the other hand, people from airport will be able to travel via Husein Sastranegara directly to Jalan Daan Mogot.

From there, people can continue on their journey to Jakarta or go straight to Tangerang via Simpang Kebon Besar.

Bad roads slow Indonesian growth, hurt competitiveness

Novia D. Rulistia, The Jakarta Post, Jakarta

The state of land transportation is not only poor but seems to be getting worse, a seminar revealed, citing a global survey that put Indonesia's ranking in a worse position this year than last year.

Bambang Susantono, deputy to the coordinating minister for the economy for infrastructure and regional development, said Tuesday that Indonesia was ranked 91 among 131 countries surveyed by the World Economic Forum in the transportation infrastructure area.

Indonesia was 89th last year.

Bambang said the infrastructure sector was eroding the country's economic competitiveness.

"From the aspect of competitiveness itself Indonesia ranks 54th out of 131 countries."

Bambang said problems often occurred such as bottleneck and delays in logistics deliveries along Java's northern coastal highway.

"Such conditions create logistical obstacles which are hampering the country's economic growth and diminishing our competitiveness index even further," he told the seminar on Indonesia's state of transportation.

Therefore, Bambang said, the government planned to speed up road infrastructure projects to help solve bottleneck problems in the country's main trading lanes by increasing the infrastructure budget.

"To help solve the problem, we will first focus on creating better access in certain areas which support the economy, like the eastern parts of Sumatra, Kalimantan and Java's northern coastal highways," he said.

Also, the government will focus on improvements in industrial areas, such as in Cikarang, West Java, and Jababeka, as well as the construction of toll roads from Cibitung to Tanjung Priok ports.

To do that, the government has increased budget allocations for infrastructure projects in the past several years, Bambang added.

In 2005, the government allocated Rp 20.9 trillion for infrastructure, of which Rp 8.9 trillion was set aside for transportation.

This year, the infrastructure budget allocation has reached Rp 61.9 trillion with Rp 33.8 trillion for transportation.

However the budget for roads management this year is only Rp 18.41 trillion, according to director general for highways at the Public Works Ministry, A. Hermanto Dardak. Only 45 percent of the budget is to be used for road expansion.

The remaining 55 percent, equal to Rp 10.19 trillion, will be used for the preservation of 33.78 kilometers of roads and 27,456 meters of bridges, as well as the improvement of road structures.

The road expansion projects will consist of the construction of 1,800 kilometers of bridges and roads.

"The increase in budget is simply not enough," Bambang said.

"In addition, the budget increase should be balanced by other efforts, like transportation regulations, improving the quality of human resources and the involvement of the private sector."

Govt to speed up construction of Cibitung-Tanjung Priok turnpike

The Jakarta Post

JAKARTA (Antara): Construction of the Cibitung-Tanjung Priok turnpike will be accelerated to overcome traffic jams from and to Jakarta's Tanjung Priok seaport, a government official said.

"The government will speed up construction of the turnpike from Cibitung to Tanjung Priok port," deputy for infrastructure and regional development to the coordinating minister for the economy, Bambang Susantono, said Tuesday on the sidelines of a seminar on the medium-term national development program in the transportation sector.

Bambang said the acceleration would be part of the government's efforts to resolve traffic problems around Tanjung Priok.

The government will also extend the turnpike to industrial areas in Cikarang and Cikarang Timur, he said.

The government has earmarked Rp 200 billion to clear land for the construction of the Cibitung-Tanjung Priok tollway, he said.

Merpati flies out of Halim Perdanakusumah airport for a month

JAKARTA (JP): State-owned PT Merpati Nusantara Airlines announced Monday it will fly out of Halim Perdanakusumah airport in February to maintain its level of service to passengers.

"The temporary move was taken because weather conditions in Jakarta and its surroundings are expected to remain unpredictable in the coming weeks," Merpati corporate secretary Purwatmo saidin a media release.

"By moving to Halim Perdanakusumah airport, Merpati is anticipating unwanted events experienced by many airlines last week."

Purwatmo was referring to events on Friday, when the Sedyatmo tollroad connecting Jakarta to the Soekarno-Hatta International Airport was inundated, disrupting flight schedules.

Airport authorities also closed the airport in Tangerang from 10 a.m. to 3 p.m. due to bad weather and limited visibility.

Many airplanes were forced to postpone their departures or divert to another airport including Halim Perdanakusumah airport.

On Monday there were only two Merpati flights departing from Halim Perdanakusumah at 9:30 p.m. and 10:15 p.m., both heading for Makassar, South Sulawesi.

There were five arrivals scheduled in Halim Perdanakusumah on Monday afternoon from Denpasar, Medan and Makassar.

"We will move all flights to Halim Perdanakusumah on Tuesday," Purwatmo told The Jakarta Post over the phone. (nvn)

Leaving On A Jet Plane (Don't Know When I'll be Back Again)

The Jakarta Post, Simon Pitchforth

Well Friday of last week proved to be another fun day of over-hydration in the capital. Jakarta's floods seem to be moving from a five-year cycle toward a one-year cycle, the combined result of global warming, environmental degradation and years of poor city governance.

I'm sure you all have your own fun stories to relate. Myself, I attempted a trip into the office whilst the rain was still hammering down and, despite only walking for five minutes with an umbrella, got completely soaked from head to foot, and then found out that my appointment had been canceled due to the deluge. All good fun.

I cheered up no end though when I learnt that the President was in a similar flood-induced predicament, stranded in his motorcade on the toll road, no doubt composing tracks for that difficult second album (It's Raining in My Heart, Your Love Is like a Breached Flood Barrier, Toll Road of Desire, etc. etc.).

Other Indonesian politicians seemed to fare a little better however, mainly due to being the proud owners of the latest top of the range, high ground clearance SUVs. The Jakarta Post revealed all last Saturday:

"The rest of the Cabinet's ministers arrived on time at the palace for the meeting. Among them were Transportation Minister Jusman Syafii Djamal in a Land Rover, Coordinating Minister for Political, Legal and Security Affairs Adm.(ret) Widodo AS in a Lexus Cygnus, Coordinating Minister for People's Welfare Aburizal Bakrie in a Toyota Alphard, State Minister for the Environment Rachmat Witoelar in a BMW X5 and Forestry Minister MS Ka'ban in a Toyota Prado."

I stopped reading at that point as the story seemed to be lurching perilously close to something you'd find in Top Gear magazine. I wonder if these legislative auto enthusiasts get any commission for road testing these vehicles in Jakarta's 660 km square paddling pool.

Certainly other motorists were less fortunate and familiar images of half-submerged, abandoned cars once again filled the local media. Recently I've been considering getting a secondhand motor car but the thought of being conned into buying one of these terminally flood damaged clunkers fills me with dread.

Jakarta's airport seemed to be the biggest victim of last week's rain however. My housemate's own personal attempts to return from a Singapore visa run should provide an ample illustration. His plane was first diverted to Palembang where he was trapped inside with the other passengers on the runway with the air-conditioning off for ages whilst the backlog of diverted flights was dealt with.

Upon eventually arriving at Soekarno-Hatta he found that heading into town was impossible and checked into an airport hotel on one of their six-hour room stay deals. He crashed out, exhausted, only to be woken up at 3 a.m. by an insistent knocking on the door.

"Six hours finished Mr, time to check out." My bleary-eyed friend's attempt to prolong his stay with his credit card proved unsuccessful and he was forced to take a motorcycle taxi ride to the nearest ATM in order to secure further funds for more time in the land of nod.

The next day it eventually took the poor lamb three-and-a-half hours to get home via the back streets of Tanggerang.

These kinds of shenanigans don't really bode well for 2008: Visit Indonesia Year.

I mean you're pretty much stuck on the starting blocks if you can't even get out of the airport. If I was some fastidious potential business investor or wealthy tourist arriving at Soekarno-Hatta after a long, luxury business class flight quaffing champagne on Cathay Pacific whilst being manicured and peeled grapes by curvaceous stewardesses, I think I'd find the whole Jakarta airport scenario a bit of a rude awakening.

Although Jakarta's airport seems to be getting cut off from the rest of the world with increasing regularity, in truth this flooding problem has been on the cards for years.

In the dry season, the drive to the airport is actually a very pleasant canter through lush verdant vegetation and green paddy fields but on both sides the toll road is always surrounded by ominous swathes of water, ready to submerge it at a moment's notice. The whole area is basically a swamp.

The city administration seems to have done nothing about it for years though.

That famous, and alas now deceased, galactic hitchhiker Douglas Adams once said that, "Human beings, who are almost unique in having the ability to learn from the experience of others are also remarkable for their apparent disinclination to do so," an epithet tailor-made for Jakarta's governors if you ask me.

Matters would certainly be helped if the city administration would finally get round to finishing the JORR (Jakarta Outer Ring Road) which would at least provide another exit route out of the airport. Work on the ring road was halted during the 1998 financial crisis and doesn't seem to have been started again since.

I learned in the paper this week that plans are afoot to elevate the airport tollway.

As I understand it though, the toll road, as it is now, is designed around an underlying "chicken's claw" system which distributes the road's weight evenly over a larger area of the bog underneath, stopping it from sinking.

Would it really be possible to build an elevated tollway on such an unstable base given that the current road is basically floating as it is? Perhaps any civil engineers out there could enlighten me on this point as I'm getting way out of my depth here.

Until then it's adieu from me for another week and if you find yourself wading through floodwaters over the next month, remember to wash your legs thoroughly afterwards.

http://metromad.blogspot.com/

--Simon Pitchforth