Govt to build railway in Batam, with or without foreign investors

Fadli, The Jakarta Post, Batam | Archipelago | Wed, October 17 2012,

The government will charge ahead with plans to develop a railway system in Batam, Riau Islands, despite lackluster interest from investors in Singapore and Russia, an official says.
“Foreign investors have not shown interest in the project yet. But some of them, especially those from Russia, have shown interest in developing a railroad in Sulawesi and Kalimantan,” Transportation Ministry railroads chief Tundjung Inderawan said on Wednesday.

Tundjung said that if foreign investors could not be found the government would build a railway in Batam using Rp 2.4 trillion (US$251 million) in funds from the Transportation Ministry, the Riau Islands provincial administration, the Batam Free Trade Zone Authority(BPK) and the Batam administration.
The proposed rail system has an estimated completion date of 2017 and will span 27.5 kilometers between Batu Ampar with Batu Aji, 16.4 kilometers between Sekupang and Batam Center and 16.3 kilometers between Batam Center and Nongsa.
BPK chief Mustofa Wijaya said the rail system was needed to reduce congestion.
“We see a significant growth in Batam’s population and traffic congestions in Batam is already in front of our eyes,” Mustofa said.(han/swd)