Operator Determination Hampers Trans-Java Toll Road Fund
Thursday, 11 January, 2007 | 16:00 WIB

TEMPO Interactive, Jakarta: The disbursement of initial funding of Rp600 billion to the Public Service Agency (BLU) for land acquisition of the Trans-Java Toll Road is not regarded as being related to the founding of a freeway management holding company.

Hisnu Pawenang, Head of the Toll Road Management Agency, said that the BLU, which was founded under the Public Works Department, is carrying out the government's duties to manage risks in acquiring land for toll roads.

“(Founding a holding company) has nothing to do with the BLU,” he said at his office, Jakarta, yesterday (10/1).
A holding company is an investor who does not have a role in land acquisition.

“Investors only provide funds,” said Hisnu
He was speaking in response to Finance Minister Sri Mulyani Indrawati’s insisting on the founding of a holding company before the Rp600 billion funds were disbursed.

Sri Mulyani said she did not wish that when the funds are disbursed, the identity of the toll toad operator was not still yet clear.

This requirement is to confirm that the bail-out funds from the state are used according to plan.

“We will wait until the holding company is founded,” she said after a cabinet meeting at the Agriculture Department in Jakarta on Monday (8/1).

Sri Mulyani went on to say certain that the land acquisition funds for all toll road projects amounting to Rp2 trillion would be disbursed smoothly if the requirements are met.

“The funds were allocated in the State Budget 2007,” she said

Previously, the Public Works Department proposed a Rp3 trillion budget for infrastructure, but the Finance Department only approved Rp2 trillion.

Djoko Kirmanto, the Public Works Minister, had said he was optimistic that Rp600 billion funds coulf be disbursed on January 2.

However, so far the awaited funds are still at the Finance Department.

Hisnu explained that the founding of a holding company was still at the planning stage and not yet final because the implementation was not yet certain of success like in Malaysia or South Korea.

Kasanah, an investor from Malaysia, said Hisnu, had explained this concept to the Public Works Minister.

“According to them, this holding company is more government-to-government in terms of its characteristics,” he said.

During the presentation, Kasanah proposed an asset ownership of 30 percent so that the majority assets still belong to the government.

If the holding company concept is approved, Hisnu said he was of the opinion that investor selection must be transparent.

Rieka Rahadiana | Anton Aprianto