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Three mining companies are prepared to invest around Rp 4 trillion to build dedicated coal roads in Jambi Province. The 314-kilometer (km) logistics roads would be divided into three main routes.
Jambi Province Regional Secretariat Economic Affairs and Development Assistant Johansyah stated that construction of the dedicated coal road could not rely solely on the regional budget.
"The cost is enormous, exceeding Rp 4 trillion. Therefore, the private sector must be involved," he explained.
The three companies that sought involvement in the project are PT Sinar Anugerah Sukses (SAS), PT Putra Bulian Properti (PBP), and PT Inti Bangun Sarana (IBS). This project is deemed urgent because the problem of coal transportation on public roads has caused social impacts, damaged infrastructure, and decreased regional revenue sharing fund (DBH) from minerals and coal.
PT PBP and PT IBS have planned to complete a 105 km route and a 101 km route, respectively. Meanwhile, PT SAS President Director Ridony Gurning emphasized that his company remains committed to completing a 108-kilometer route from Sarolangun to a logistics terminal for PT SAS' exclusive usage.
"Progress for the construction [of the route and terminal] continues. This dedicated road is crucial for continuity of business and [will] provide benefits to the region," he concluded.
In addition to increasing production, the dedicated road is also believed to boost regional revenue through DBH (Regional Revenue Sharing Fund) and taxes, as well as create new job opportunities. Ridony confirmed that his team is preparing technological engineering to minimize environmental impact.