Lampung prepares groundwork to invite investors

Oyos Saroso H.N. , The Jakarta Post , Bandarlampung | Sat, 11/28/2009 1:07 PM

The Lampung provincial administration is formulating regulations in response to anticipated consequences from the construction of the Sunda Strait bridge (JSS) after the central government took over the endeavor as a national project.

The regulations, in the form of local ordinances, will focus on investment and development in Lampung with a view to protecting the community from any negative impacts resulting from the bridge's presence or operation.

"Without regulations, money would rapidly flow out of the province because people in Lampung could easily go to Jakarta to shop and spend their money. Also, industries that are very lax or not concerned with environmental safety could invest or move their operations to Lampung if adequate regulations were not in place," Lampung Governor Sjachroedin Z.P. said.

Sjachroedin expressed hope the JSS, connecting the islands of Java and Sumatra, would be completed quickly.

"We don't want to be lose out to the bridge connecting Dumai in Riau with Malaysia," he said.

Sjachroedin said he was pleased by the central government's positive stance on the proposal - formed by the Lampung and Banten provincial administrations and governors from across Sumatra - to build the bridge.

"We are rather impatient because studies of a planned Java-Sumatra bridge have been conducted since the 1980s. Had the central government refused to assist, we *the Banten governor and governors from across Sumatra* would have built the JSS ourselves. We would have invited investors and managed it together with the Banten provincial administration," Sjachroedin said.

Prior to discussions at the national level, he added governors of eight provinces in Sumatra and the Banten governor had discussed the plan and the project's potentially huge benefits.

According to Sjachroedin, PT Artha Graha had conducted the project's feasibility studies.

"We invite the central government to conduct another study should they wish to do so," he said.

"The social disparity between Lampung and Banten provinces can certainly be reduced if the JSS project is realized," he added.

"The JSS, which is planned to have a height of 70 meters with a span of 30.4 meters, is designed to be able to withstand earthquakes and tsunamis. We are aware of the presence of the active Mount Anak Krakatau in the Sunda Strait which is prone to eruption and could trigger a tsunami," Sjachroedin said.

The JSS project has also highlighted possible impacts on the Archipelagic Sea Lanes of Indonesia (ALKI), which organizes marine navigation. The deepest sea gap included in the ALKI is located between Sangiang and Prajurit islands spanning 3.5 kilometers. According to the JSS plan, two of the bridge's support pillars will be built on each island.

The cost of the JSS project is estimated at Rp 92 trillion (US$9.79 billion), which will be divided into two phases. The first phase, costing Rp 1.8 trillion, would cover the feasibility studies and engineering costs, while the second phase would be the construction, costing Rp 90.2 trillion. The project has an estimated time to completion period of between six and 10 years.

At the end of October, Coordinating Economic Minister Hatta Radjasa said Indonesia would prioritize the development of domestic infrastructure, including the completion of the JSS.

Hatta added that the government would look to develop local economies through the JSS project. He said the recent focus on the JSS project was also aimed at preventing commodities in Sumatra from being sent to Malaysia and to create better connections between Java and Sumatra.

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