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Joint Project: Makassar-Parepare Railway Guarantor Signed Soon

Joint Project: Makassar-Parepare Railway Guarantor Signed Soon

JAKARTA - PT Penjaminan Infrastruktur Indonesia has scheduled the signing of the Makassar-Parepare railroad cooperation project guarantee in the third week of December 2018. The project is said to be going to create a number of new records in cooperation projects with business entities (PPP). PII President Director Armand Hermawan said that the stages of the Makassar-Parepare railroad project from exploring market interest to signing the PPP agreement were completed within 9 months. He added that the relatively fast process for a collaborative project dismissed the notion that preparation of the process requires a long time.

"So, if you say that PPP is long, it's just an illusion. Besides being the fastest, this project is also the first PPP project in the Ministry of Transportation. Another record, Sulawesi can [train] infrastructure," Armand told Bisnis last week.

The Makassar-Parepare railroad stretches 144 kilometers. In the cooperation project, the business entity is offered to build a line in segment F along 13.90 kilometers. In addition, the scope of cooperation also covers the operation and maintenance of three segments along 107.10 kilometers. The value of the Makassar-Parepare railroad contract is estimated to reach Rp1.50 trillion. This 20-year collaboration will use an investment return scheme in the form of service availability or availability payment (AP).

Armand said that PII would guarantee if the government was late paying its obligations to business entities. Project termination is also an aspect of the risk borne by PII. To date, as many as six consortia have been declared to have passed the prequalification stage. Merwka is PT Len Industri; Kyeryong Construction-Korea Railroad Corporation-KRNA; PTPP-BK-CCCEI-IM; China Harbor Indonesia; PT Waskita-PT Waskita Toll Road; and PT Wijaya Karya Tbk.-IMS. The number of participants who passed the prequalification in the Business record is less than the number of interested people in assessing market interest in March 2018. At that time, as many as 24 companies expressed their interest in participating in the Makasssar-Parepare railroad cooperation project. (Rivki Maulana)

Source : Rivki Maulana (2018), https://sumatra.bisnis.com/read/20181127/437/863383/proyek-kerja-sama-penjaminan-ka-makassar-parepare-segera-diteken
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Makassar, sulselprov.go.id — Indonesian President Joko Widodo (Jokowi) inaugurated the operation of the Makassar-Parepare Inter-Maros-Barru train line, Wednesday, March 29 2023. The inauguration took place at the Maros Railway Depot, Maros Regency.

The President hopes that this railroad line will not only be a transportation option for the community but can also reduce logistics costs while at the same time increasing the competitiveness of South Sulawesi and Indonesia as well.

"If later there are really a lot of trains, there are for passengers, there are for tourism, there are for goods, this will give competitiveness, our country's competitiveness will be even better because goods are transported by cheap means of transportation," said President Jokowi.

Accompanying the President, among others, Coordinating Minister (Menko) Maritime Affairs and Investment Luhut Binsar Pandjaitan, Minister of Transportation (Menhub) Budi Karya Sumadi, Cabinet Secretary (Seskab) Pramono Anung, Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia , as well as the Governor of South Sulawesi Andi Sudirman Sulaiman.

Meanwhile, the Governor of South Sulawesi, that the presence of this train is very welcome. Because it will facilitate people's mobility and logistics transportation.

“And of course this is very welcome. Because previously you had to bring your own vehicle to the airport, now there is a shuttle bus that connects to the train and goes straight to the airport," said Andi Sudirman.

One of the highlights is that the railway line in South Sulawesi passes through many tourist attractions. Among them, the Kars Rammang-Rammang Geopark which last year was nominated for the UNESCO Global Geopark (World Earth Park).

“Lots of tourists come. Incidentally, this terminal is connected to Rammang-Rammang," he explained.(*)

Source: https://sulselprov.go.id/welcome/post/resmikan-jalur-kereta-api-makassar-parepare-presiden-sebut-tingkatkan-daya-saing-sulsel