Indonesia Infra Update: toll road tariff; MRT & land reform - Deutsche Bank

A bi-annual tariff adjustment on 13 toll roads by September 2011
The government plans to increase tariff for 13 toll roads by 10-12%, which is inline with the current tariff regulation where the government guarantees tariff adjutment every two years based on inflation. These toll roads include:
A) Jasa Marga: 1. Belmera, 2. Jagorawi, 3. Jakarta-Tangerang, 4. Jakarta Inner City Toll Road, 5. Pondok Aren-Ulujami, 6. Padalarang-Cileunyi, 7. Cipularang, 8. Palimanan-Kaci, 9. Semarang, 10. Surabaya-Gempol, 11. Jakarta Outer Ring Road and 12. Bogor Ring Road, and B) Marga Mandala Sakti (Astra Int'l): Tangerang-Merak.

Prequalification tender for Jakarta's MRT project
Ten contractors from domestic and Japan have expressed their interests to participate in the prequalification tender for Jakarta's MRT project that will be held in the next 1-2 months with expected contract signing in April-May 2012 and project completion in 2016. There are three MRT routes that would be developed - 1) Jakarta (Central): 27km; 2) Jakarta-Bekasi-Cikarang (East): 18-30km, and 3) Jakarta-Tangerang-Karawaci (West): 16-25km. Japan Bank for International Cooperation (JBIC) will finance this project.

Parliament has begun to review the proposed land acquisition bill
Since yesterday, the Commission V in the parliament has started the review process on the proposed land acquisition bill, which was submitted by the government on 15 December 2010. This review is scheduled for completion as soon as 8 April 2011 or June/July 2011 at the lattest in a bid to pass this bill into Law in mid-2011. The members of Commission V appear to have common goal to pass-on this proposed bill to speed-up land procurement process for infrastructure realization in the country. Thus far, the disagreement is localized around the inclusion of land acquisition for private sector in this bill.