REPUBLIKA.CO.ID, MEDAN -- Coordinating Minister for Economy Chairul Tanjung has announced three infrastructure projects as part of the Master Plan of Acceleration and Expansion of Indonesian Economic Development (MP3EI) program in Sumatra.
The chief economic minister announced the plan on Friday at the Medan-Binjai toll road project in Kebun Sei Semayang, Deliserdang, North Sumatra.
The three projects are Trans Sumatra toll road, 500 KV Sumatra transmission and Sumatra-Java Interconnection HVDC Transmission.
Chairul Tanjung said the projects are a landmark that would make Sumatra an island with high economic growth and better prosperity.
The projects would improve cost efficiency that the goods transport cost would be cheaper in Sumatra and from Sumatra to other islands even other countries, he said.
"The condition would improve Sumatra's industrial competitiveness and would open many jobs -- all are monumental, a milestone in Sumatra's economic development," he said.
He said the Sumatra 500 KV transmission would link all power plants any where in Sumatra that power could be channeled to all part of the island.
The project is monumental as energy and gas are vital for a country to advance, he said.
He said gas from the Arun field would soon flow to Belawan, the port city of North Sumatra, and the Pangkalan Susu power plant would soon come on line to free North Sumatra from the inconvenience of power shortage and blackouts.
Meanwhile, the construction of interconnection submarine cable between the Sumatra systems and the Java and Bali networks will further guarantee power supply in the region, he said.
Projects with a total investment of US$2 billion would be linked with power system in Malaysia through interconnection cables with Malaka.
North Sumatra Governor H Gatot Pujo Nugroho said land clearing for the Medan-Binjai toll road is in the process.
Around 70 percent of the land needed for the toll road project has the status of land title for business purpose for state plantation company PT.Perkebunan Nusantara II , Gatot said.
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