At some point in the longer term, Peninsular Malaysia could also be connected to Sumatra, on condition that the Indonesian government is currently exploring the potential for constructing a bridge to attach the 2 countries as a part of plans to develop and improve toll highways.
Bloomberg reported that the Indonesian government plans to spend a staggering $70 billion on toll highways connecting distant islands, including a link to Malaysia. The news organization quoted the top of Indonesia’s toll road regulator, Danang Parikesit, as saying that by 2024, the country’s toll highways will probably be almost 3 times longer than they’re today.
“By 2024, toll highways in Indonesia will stretch for 5,400 km, almost three times longer than the current network,” reportedly.
“In addition to highways, the regulator is also examining the possibility of building a bridge from Peninsular Malaysia to Sumatra and a bridge connecting Singapore with Bintan Island.”
More than half of the brand new toll roads will probably be inbuilt Sumatra, where they are going to connect the 2 ends of the island.
Danang said he expected advanced construction techniques to be required in some locations to take care of road bridges 100 meters above the bottom or tunnels several kilometers long.
The plan was to facilitate the transportation of food and fuel through the world’s largest archipelago. Indonesia, scattered over 17,000 islands, is a logistical nightmare. The prices of on a regular basis items could be highly inflated, and development in hard-to-reach locations is difficult.
Last month, Indonesia’s Planning Minister Bambang Brodjegoro said the one option to achieve faster economic growth is thru connectivity.
But there are concerns over how the 1 trillion rupiah highways will probably be financed, with analysts fearing the financial burden will put pressure on the Indonesian banking system and the balance sheets of local construction corporations.
Parikesit reportedly said the federal government is aware it cannot foot the bill by itself and is looking for other sources of capital, including bank loans and personal financing.
This work is predicted to spice up revenues of state-owned construction corporations resembling PT Waskita Karya, PT Adhi Karya and PT Wijaya Karya. Financial entities resembling PT Bank Rakyat Indonesia, PT Bank Negara Indonesia and PT Bank Mandiri could also be invited to assist finance the project.
In 2014, the Melaka state government was considering reviving a 2006 proposal for a bridge connecting it to Dumai in Riau, Sumatra – which can be the longest on the earth.
The origins of the project date back to the Nineties, nevertheless it was abandoned after the Asian financial crisis in 1997.
Source: Bloomberg | MalayMail.com
