STATE OWNED COMPANIES READY TO FINANCE BUILDING OF SUNDA STRAIT BRIDGE

The Minister of State Owned Companies [BUMN] stated that BUMN companies were ready to finance building of the 15 km long Sunda Strait bridge.

The commitment to build this Rp130 trillion titanic project emerged because so far the process of building this bridge which would connect Java and Sumatra was not showing any progress, not even a spark of hope concerning matters of which investors would finance the feasibility study. “BUMN are ready to be commended to build JSS” the Ministry of BUMN Dahlan Iskan stated at the Petani Headquarters Jakarta on Friday [7/3].

Although be expense of this project was astronomic, Dahlan believed that by synergy, BUMN could gradually allocate investment in the next few years. “The Rp 150 trillion fund is not to be raised overnight. JSS need 12 years to build, so it means the need per year is around Rp 12 trillion” Dahlan said.

Dahlan said that supposedly the Government could afford to finance this JSS project considering the high allocated amount subsidy for energy amounting Rp300 trillion. Previously the Government had designated a consortium led by PT Graha Banten Lampung Sejahtera [GBLS] initiated by tycoon Tommy Winata to continue feasibility study process. In the development process, PT GBLS would be supported by a team of BUMN.

Dahlan himself admitted that he was ready to run feasibility study or build JSS if the Government appointed BUMN. “All you have to do is to appoint, once appointed I will start to work. If we have to build we build, if we have to plan we will plan,” he said.

Dahlan said that building of JSS needed 12 years and that should be difficulty in procuring fund of RP150 trillion. “We are collecting this fund in a year or two but in 12 years. If Rp150 trillion was built in 12 years it would be around Rp12 trillion per year, truly feasible,” he said.

Meanwhile the Coordinating Minister of Economy Hatta Rajasa stated that the Minister of Public Works would set up a Task Force, because it was decided that the project would not use APBN state budget, so the company owned by Tommy as initiator would handle it, assisted by BUMN. “It is agreed that the JSS project would proceed. We will mobilize BUMN led by initiator. They my start discussing it,” Hatta Rajasa remarked.

In terms of financing, the Ministry of Finance agreed to control feasibility study only the phase of groundbreaking. Although this megaproject was not going to use APBN, the state of JSS as strategic infra-structure obliged the Government to monitor the development process. “Meaning JSS project would not use APBN but we should run the Governance” Hatta said.

Technically, to finalize GBLS the company and BUMN would be dissected in the next meeting, chaired by the Ministry of PU. The technical aspects included financing scheme, construction plan, and division of labor between private initiator and BUMN appointed to support the JSS project. (SS)

Business New - March 12, 2014