06
January


 

Indonesia's Public Works and Housing Ministry intends to complete a 929.7-kilometer stretch of a toll road connecting Java's westernmost city of Merak to Surabaya, the capital of East Java, by the end of this year, according to a statement released recently. The Merak-Surabaya toll road will be part of the TransJava toll road which will connect Merak to Java's easternmost city of Banyuwangi. The TransJava toll road, when completed, will stretch for 1,167 kilometers from West to East Java. Public Works Minister Basuki Hadimuljono said in the statement that they want the Merak-Surabaya toll road to be at least partly ready by June this year so it can help with the Idul Fitri exodus. He said that the ministry expects all land acquisition for the project to be completed by January, so they can move on to construction straight away. So far, a total of 561 kilometers of the TransJava toll road has been completed and are already in use. Construction is still going on in the remaining parts, totaling 606 kilometers. At some sections of the toll road, construction has been halted by land acquisition problem. Nevertheless, minister Basuki said the problems with clearing land for the toll road is now "nearly 100 percent solved." The Indonesian government expects the TransJava toll to improve access to remote cities on the island and reduce logistic costs. (JG)

06
January

The Jakarta administration has allocated Rp 3.4 trillion (US$255 million) from its 2018 budget to flood mitigation projects. Water Resource Agency Head Teguh Hendarwan, as quoted by kompas.com,  said on Friday that the biggest allocation of Rp 1.3 trillion will be for the Water Resource Agency, which will be in charge of land acquisition for river restoration projects. He added that the city would focus on land acquisition along the rivers of Ciliwung, Pesanggaran and Sunter. Another Rp 800 billion are to be spent on the development of sewerage systems and waterways. (JP)

06
January


Transportation Ministry proposed to charge Rp70,000 for Soekarno Hatta Airport train fare for this year. Transportation Minister Budi Karya Sumadi said that the fare is lower than the rate determined by Railink as much as Rp100,000. Up to February 2018, the fare charged is still promotional rate Rp70,000. He stated that he is recommended to maintain the current price so that people can enjoy a good price and they can compare it with other modes of transportation. Budi added that rate adjustment is still open for discussion and it can be evaluated in 2019. He believes that Railink can still gain profit from sources other than ticket sales including advertisement at the station and naming right with BNI bank to name the station BNI City Station. He also explained that in addition to airport train, Railink can explore profit potentials from area development. BNI City Station can be a meeting point for different kinds of transportation modes to create commercial space. The minister hoped that this can develop into a lifestyle, a station becomes a place where people meet and the restaurants will run well. (tempo)

06
January

Finance Minister Sri Mulyani Indrawati stated that in 2018, the development programs will be focused on improving welfare and reducing poverty. To achieve such goals, the ministry will lead economic reform agenda including in the fiscal aspect of 2018. Sri Mulyani mentioned that 2018 fiscal policy is still directed at three main strategies including optimizing revenue, improvement in the quality of expenditure and cautious, sustainable financing. By doing so, state budget (APBN) management will be strengthened. Such strategies are devised to support healthy economic growth at the level of 5.4 percent and decrease in unemployment to 5–5.3 percent. Sri Mulyani stated in Malang on Friday that the level of poverty is to be reduced to under 10 percent, and Gini ratio to 0.38. Currently, Indonesia is one of the countries with the lowest level of debt in the world. Sri Mulyani concluded that Indonesia needs to maintain state budget deficit only for productive purpose to ensure debt payment and this is the responsibility for the future generation. (tempo)