Sumatra’s rich natural resources would flow more easily into Java and beyond. (Photo: Sri Rahayu Ningsih, AFP)

Bridging the Java-Sumatra Gap Will Boost the Economy

Indonesia’s infrastructure projects have had a stop-start history over the past few years. Government officials acknowledge the critical importance of infrastructure for the economy and nation to progress; however, a number of large projects have been stalled.

There is now serious talk of building a 20-kilometer bridge across the Sunda Strait to link Java with Sumatra. In the latest step in plans for the $10 billion project, a pre-feasibility plan has been completed by businessman Tommy Winata and submitted to the government.

Such a huge undertaking will require a strong partnership between the public and private sectors and it is thus heartening to note that State-Owned Enterprises Minister Sofyan Djalil has indicated that government-owned companies will participate in the project. For his efforts, Tommy will receive a slight advantage when the government tenders the project.

If everything goes according to schedule, the bridge will be operational by 2020. The government has said it will prioritize infrastructure projects that involve transportation and the movement of people and goods. Given that Java and Sumatra account for 80 percent the country’s population, the bridge will connect a large portion of the country.

Moreover, Sumatra’s rich natural resources will now be able to flow more easily into Java and beyond. Traffic between the two islands has been increasing steadily as the domestic economy continues to grow. Some 20 million ferry passengers and 1.7 million tons of cargo passed through the Sunda Strait in 2006 and this figure is expected to double by 2020.

The bridge makes imminent economic sense despite its enormous cost. President Susilo Bambang Yudhoyono has said that his government will also accelerate the completion of the Trans Java and Trans Sumatra highways to complement the Sunda Strait bridge.

Similar projects in other countries have proved that they also foster rural development as formerly inaccessible areas open up. New industries spring up along the toll roads as new opportunities are created, lifting living standards and creating new jobs. China and Malaysia are good examples of countries that have raised economic output and increased productivity by opening up their hinterlands with road infrastructure.

For the bridge to be commercially viable, the government must create new industrial estates nearby and build ports and harbors so that goods can be shipped more efficiently.

Finally, the bridge will only materialize if the government supports the partnership between the private and public sectors. The president must throw his political support behind the project so that issues such as land titles and other bureaucratic red tape do not stall it.

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