The President of the Republic of Indonesia Joko Widodo is carrying out a groundbreaking of the Pemalang-Batang and Batang-Semarang toll roads. Groundbreaking was carried out in Batang, Central Java on Friday (6/17). Accompanying the president, Minister of Public Works and Public Housing (PUPR) Basuki Hadimoeljono, SOE Minister Rini Sumarno, and Central Java Deputy Governor Heru Sudjatmoko.

In his report to the President, Minister Basuki stated that the construction work on the Pemalang - Batang and Batang - Pemalang toll road will be carried out in parallel with the land acquisition.

"The progress of land acquisition on the Pemalang - Batang toll road currently reaches 12 percent and the Batang - Semarang toll road reaches 20 percent. So that both can be completed according to the target, namely in 2018, the construction will be carried out in parallel with the land acquisition," said Basuki.

President Joko Widodo believes the existence of this toll road will contribute significantly to serving the movement of people, goods and services, especially in the North Coast of Central Java and in Java as a whole.

The President further said that the Government was aware that infrastructure development was an absolute prerequisite for increasing the nation's competitiveness in order to encourage economic growth. Therefore, in the future the Government will continue to strive to improve the investment climate so that it supports the acceleration of toll road infrastructure development.

"The Governor of Central Java, the Mayor, the Regent and his staff, along with the community, are expected to support the completion of toll road construction, particularly in relation to the land acquisition process for the two segments that we groundbreaking today," he continued.

Jokowi added that so far the main problem in infrastructure development has been regarding land acquisition. Therefore he asked the investors who would build the toll road to be able to discuss and educate the public about the positive impact of development on the community's economy. Not to forget, he also appealed to the community to be willing to release their land for infrastructure development in the common interest.

For information, the operation of the 39.2km Pemalang - Batang section is carried out by PT Pemalang - Batang Toll Road whose shareholders consist of PT Waskita Toll Road (60 percent) and PT Sumber Mitra Jaya (40 percent) with an overall investment cost of Rp4.8 trillion and the 45-year concession period commencing from the issuance of the Construction Start Order (SPMK).

While the 75km concession of the Batang - Semarang toll road is carried out by PT Jasamarga Semarang-Batang with the composition of its shareholders being PT Jasa Marga (60 percent) and PT Waskita Toll Road (40 percent) with an overall investment cost of Rp.11.05 trillion and a concession period of 45 years since the issuance of SPMK.

The Minister of PUPR revealed, the Batang-Semarang toll road is the first toll road project that uses a guarantee mechanism from the Indonesian Infrastructure Guarantee Corporation (PT PII / IIGF), including guarantees for bailout funds in the context of procurement of toll road land.

"The facility is expected to reduce investment risk, increase project bankability so as to increase the interest of the private sector and banks for participation in infrastructure development," he concluded.