Toll Road Projects Will be Hard to Sell
Wednesday, 01 November, 2006 | 17:32 WIBTempo Interactive
, Jakarta: Sofyan Wanandi, Head of the National Recovery Committee, said toll road construction projects will be the most difficult projects to be sold.
This is because investors are not yet convinced that the government can provide legal certainty as regards land acquisition.
Sofyan explained that the matter of land acquisition was actually an old problem in Indonesia, which still could not be solved.
“The matter is difficult to solve because there are overlapping regulations between the central and regional governments,” he said after the opening of the Infrastructure Conference and Exhibition 2006 at the Jakarta Convention Center, today (1/11).
Because of this, Sofyan went on to say that the banking sector was reluctant to provide loans because it regarded such projects as not visible or not having certainty that the funds invested in these projects can be returned on time.
According to him, foreign parties who are potential to join infrastructure tenders in Indonesia come from Japan, China, Australia, Europe and America.
“Because they have been studying Indonesia for a long time,” said Sofyan.