Sumatran Toll Road Construction Claims To Have An Economic Impact Of IDR 768 Trillion From An Investment Of IDR 538 Trillion

JAKARTA - The government through PT Sarana Multi Infrastruktur (SMI) said that the construction of 11 priority sections of the Trans Sumatra toll road had an economic impact of IDR 768 trillion.

SMI's Director of Financing and Investment Sylvi J. Gani said the amount was generated from development investments which cost an investment of Rp538 trillion with a stimulus of Rp452 trillion.

"We also value that the construction of the Trans Sumatra Toll Road can have a multiplier impact on the national economic output of Rp. 1.7 percent," he said in a webinar held on Friday, August 20.

According to Sylvi, the highway is believed to be able to generate added value of IDR 369 trillion, increase household income of IDR 119 trillion, and work opportunities for 671,000 people per year.

"The annual impact of the construction of the Trans Sumatra toll road is equivalent to 2.2 percent of GRDP (gross regional domestic product) in Sumatra," he said.

"Meanwhile, in terms of manpower, it can provide an opportunity to absorb 2.4 percent of the workforce in Sumatra every year," he continued.

For information, the Trans Sumatra toll road is one of the government's priority projects whose construction will start from 2015 to 2033 and is planned to be built along 2,812 km stretching to the tip of Sumatra Island.

This project was built with the aim of opening new economic centers that can be built from industrial estates and are able to become the main access in connecting various provinces in Sumatra.

Until now, the segment that has been operating is 531 km long. PT SMI as an institution under the auspices of the Ministry of Finance was appointed as a special mission vehicle (SMV) which is actively involved in financing the construction of these five toll roads with a commitment value of Rp. 18.5 trillion.