Magelang Toll Road

active

In February 2004, PT Merapi Internusa, a Malaysian fully-owned company, signed a 28-year agreement with local authorities to build, operate and transfer a toll road project in Magelang, Central Java in Indonesia. The 10km road, which was to be designed by Malaysian consulting engineers and constructed by local Indonesian contractors and workers, was estimated to cost between RM12 million and RM15 million (US$3.4 - US$4 million). The gross toll collection over the 28 year period was estimated at RM150 million, of which the local authority was to get a portion of approximately RM50 million (US$13.1 million). The road was to be specifically used by vehicles transporting sand from the surrounding Gunung Merapi base. The road construction works commenced in May 2004 after obtaining full approval from the authorities there in the first week of March of that year. Construction was expected to take eight months to a year to complete and PT Merapi Internusa was to finance the cost with internal funds.