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12 December 2016

Govt to Extend Balikpapan-Samarinda Toll Road Project

President Joko "Jokowi" Widodo gave his permission to continue the Balikpapan-Samarinda toll road project to Bontang, another city in East Kalimantan, as part of the efforts to improve connectivity in the country which in turn will reduce logistics costs and food prices.

"I've talked about this matter with the Public Works and Housing Minister last night," the president said in Balikpapan on Monday (05/12). "That's not a problem. So, Balikpapan to Bontang it is."

The president's permission came after East Kalimantan Governor Awang Farouk asked to extend the project to Bontang, about 116 kilometers northeast from Samarinda.

The toll road connecting Balikpapan and Samarinda, the capital city of East Kalimantan province, is initially designed to span across 99-kilometer near the coastal line of Kalimantan island, cutting travel time to an hour from up to three hours previously.

The project, which begun in 2010 but was postponed until 2015 due to land acquisition issues, has five parts; one will be fully funded by the state and district coffers, another will be funded through a loan program from China and three other parts are tendered to the private sector.

Jokowi still expects the Balikpapan-Samarinda original project to be completed at the end of 2018, ahead of the initial target of May 2019.

The president has allowed three existing consortium — which includes the consortium of state-control toll road operator Jasa Marga, state construction Wijaya Karya, Pembangunan Perumahan and Bangun Tjipta Sarana; consortium Citra Marga Nusaphala Persada, Kaltim Bina Sarana Konstruksi, Brantas Abipraya, Istaka Karya; and consortium Naza Engineering & Construction, Daya Mulia Turangga — to chip into the extension project.


Source: http://jakartaglobe.id/business/govt-extend-balikpapan-samarinda-toll-road-project/