VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The Indonesian government has signed a cooperation agreement with the Islamic Development Bank (IsDB) for financing the construction of the Trans South-South Road Infrastructure Phase 2 (TRSS-2). Director general of financing and risk management at the Finance Ministry, Luky Alfirman, who signed the cooperation agreement, said that the bank will provide 150 million US dollars out of the total construction cost of US$450 million for TRSS-2 under the agreement, in accordance with Islamic sharia principles.

"The purpose of the TRSS-2 road infrastructure development is to encourage sustainable economic growth and poverty alleviation throughout southern Java," Alfirman said, according to an official statement on Monday.

Through the development of new roads along the southern coast of Java Island, TRSS-2 can improve the efficiency and safety of road users, Alfirman said.

As part of TRSS-2, toll road sections will be built in East Java and DI Yogyakarta, with their length estimated at 67.78 kilometers, including a bridge spanning 443.1 meters. The roads will pass through the districts of Tulungagung, Blitar, Malang, and Bantul.

Infrastructure financing has also been obtained from the Asian Development Bank (ADB) through a separate funding modality, Alfirman informed.

Furthermore, the road and bridge construction will be carried out by the Directorate General of Highways of the Ministry of Public Works and Public Housing (PUPR).

Currently, Indonesia is implementing five projects financed by the Islamic Development Bank in the sectors of education, health, social welfare, agriculture, and transportation, whose total value is pegged at more than US$1 billion.

Indonesia and the Islamic Development Bank are also formulating the Member Country Partnership Strategy (MCPS) for the period 2022 to 2025, which is expected to encourage development through two pillars, namely sustainable infrastructure development and human resource development. (Antaranews)