IRN to build Rp3t Sumatra railway, roads

Khairul Saleh, The Jakarta Post, Baturaja, South Sumatra 

PT Inti Rajawali Nusantara (IRN) plans to build roads and railways in Bengkulu and South Sumatra provinces at a cost of around Rp 3 trillion (US$300 million). 

The projects will connect Muaraenim in South Sumatra and Linau Bintuhan in Bengkulu. The roads and the railway will pass through Ogan Komering Ulu and Ogan Komering Ulu Selatan in South Sumatra, IRN president director Hakman Novi said recently. 

The company is developing transportation infrastructure to facilitate the conveyance of its mining and plantation products such as coal and crude palm oil. 

Currently, IRN depends on the railway from Tanjung Enim, Muaraenim regency, for transporting the company's products to Palembang or Lampung. 

The new roads and railway will shorten the distance for transporting coal from the South Sumatran cities to the three major seaports, Tanjung Enim and Tanjung Api-Api in South Sumatra, and Tanjung Karang in Lampung. 

Once the new roads have been developed, the distance by road between Tanjung Enim to Linau Bintuahan will only be 150 kilometers. 

In the long-term, the company also plans to develop the seaport of Linau into an international class gateway to the provinces of Bengkulu and South Sumatra. 

"This will attract more investors and create jobs while at the same time offering safe, efficient, and competitive transportation, which will facilitate the development of the industries of the two regions," he said. 

The planned Rp 3 trillion investment would be spent during the next 3 to 5 years, he said. 

"Every legal requirement will be met, including the permit from the Forestry Ministry because the project will pass through the Bukit Raja Mandara protected forest," he said. 

"The land compensation for the people of the affected areas will be paid wholly by the company," he said. "No government funds are being used for this project." 

Ogan Komering Ulu regent Yuli Nawawi said that he appreciated the projects planned by IRN. 

He emphasized that central and provincial governments would ensure that the company used only the areas designated in their surveys for the purposes already stipulated. 

He added that the projects, for which all permits must be properly issued, would speed up the development of the region.