Tuesday, 12 March 2013

BUMN TO JOIN CONSORTIUM FOR SUNDA STRAIT BRIDGE PROHECT


The Sunda Straits Bridge Project (JSS) would be executed, but the investor structure would be changed, with the entry of State Owned Companies (BUMN) and the private sector. “The Sunda Straits bridge would be executed but by involving BUMN” Djoko Kirmento, Minister of Public Works disclosed in Jakarta on Friday (19/11).

PT Grehe Banten Lampung Sejahtera (GBLS) as initiator of JSS would remain to be main investor collaborating with two provincial Governments, i.e., Banten and Lampung. So although the private compo­nents would be reduced with involvement of BUMN, the name of company to undertake the project re-Maimed the same.

Separately Jusuf Kalla stated his opinion that the private sector might build a JSS project worth Rp 100 trillion, as long as not all of them was guaranteed by the Government. “If the entire project was totally guaranteed by the state, in case of wrong design or mismanagement, who would bear the loss? That must not happen” Jusuf Kalla said.

About the discourse that the project which connect Java and Sumatra would by financed by APBN State Budget, JK had no objection to it. “This project is the private idea isn't it? I agree, as long as the private sector would bear the consequences. It would be better as long as the stets don't have to bear the consequences. The case is different from electricity subsidy, it must be guaranteed. But this JSS project is high risk project, the consequences would be tremendous.

Business News - November 19, 2012

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