The government will soon begin construction of the Trans-Sumatra toll road from Aceh to Bakauheni in Lampung.
It will set aside Rp 5 trillion (US$441 million) from the state budget in the initial stage.
The Trans-Sumatra toll road is considered a strategic project, Coordinating Economic Minister Hatta Radjasa said after opening a leadership meeting of the Indonesian Chamber of Commerce and Industry (Kadin) in Palembang, South Sumatra, on Friday.
The government has appointed state construction company PT Hutama Karya to build the 2,700-kilometer long toll road. According to Hatta, funds derived from the state budget will be disbursed in two tranches, the first Rp 2 trillion in 2013 and the second Rp 3 trillion in 2014.
Hatta was upbeat the toll road would be very beneficial for provincial administrations and the central government, because the transportation of goods from Sumatra to Java still relied heavily on land transportation.
“It has been decided and it is economically viable,” said Hatta, who was accompanied by the Kadin chairman and the South Sumatra governor.
The Trans-Sumatra toll road project consists of 24 segments, including Medan-Binjai, Pekanbaru-Kandis-Dumai, Palembang-Indralaya and Bakauheni-Terbanggi Besar toll road.