PT Hutama Karya (HK) appointed by government to become State-Own Enterprise (SOE) that leads the Trans Sumatra highway construction along 2,600 km which will begin in September and worth U.S. $ 35 billion, equivalent to Rp 355,8 trillion. The government has also budgeted U.S. $ 200 million this year in the APBN-P 2013 to work on the first phase of the project.
The President's decision for this appointment is expected to be completed and published in August. Currently, land acquisition of Medan-Binjai section along 17 Km had already been prepared and HK has signed a partnership with three state-owned plantation, PT Perkebunan Nusantara (PTPN) II, III, IV and the local governments.
The next segment is Palembang - Indralaya along 22 Km which will use the land of local government and the local governments are responsible for land acquisition.
Funds worth U.S. $ 200 million in equity allocated as much as 48% for land acquisition, 10% for planning, and 43% for construction. Advanced budget allocation for the project is estimated at U.S. $ 800 million in the APBN next year.
The project was great because Sumatra contributed up to 24% of Indonesia's GDP, the second largest after Java. The toll road will connect the top end of Sumatra (Aceh) to the South end (Lampung) and to other economic center in Sumatra.
The Trans Sumatra highway is a part of Asian High Way network. It is targeted to increase the growth and resilience of economic and to decrease logistics costs in regional area.
The Construction companies and cement factory to be the beneficiary because the realization of the project will improve the prospects of the project contractor orders in the medium and long term. Cement company in Sumatra or the supply of cement to the area would be the beneficiaries. HK still NEUTRAL on the construction sector due to the high value of the shares already.
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