Toll Road Development Boosts Investment in Lampung

Bandarlampung, Lampung, Oct. 2 (ANTARA Lampung) - Construction of the Trans Sumatra toll road that started in Lampung has boosted investment in the southern region of Sumatra.

Investment in Lampung grew 2.87 percent on-year in the first quarter of 2015 . The growth rate rose 3.66 percent on-year in the second quarter of 2015.

Based on a survey by the provincial representative office of Bank Indonesia , the increase in investment was attributable to development of roads, bridges and irrigation networks and energy sector.

Implementation of investment projects in Lampung until the second quarter of 2015 reached RpRp3.28 trillion in value including Rp2.55 trillion by foreign investment companies and Rp737.1 billion by domestic investment companies.

The start of construction of infrastructure projects has encouraged investment in Lampung and revived economic growth in that province.

Among the infrastructure projects in the process of construction in the province is the Bakauheni (South Lampung) - Terbanggi Besar (Central Lampung) section of the Trans Sumatra toll road.

Construction of the section is to be completed in 2018.

Other projects include gas pipes from South Sumatra across the sea to West Java by the state owned gas distributor PT Perusahaan Gas Negara (PGN), and repairs of irrigation system and dam of Sukaraja Tiga in East Lampung.

There are also railway double track between Lampung and South Sumatra , dry port project in the port pf Panjang and expansion of Bakauheni port , etc.

The growth of investment in Lampung is also indicated by the growing consumption of electricity , supplied by the state electricity company PLN mainly in the industrial sector.

Power consumption by the industrial sector grew 5.45 percent on-year in the second quarter of 2015 , up from 2 percent in the previous quarter.

The number of PLN`s industrial customers rose to 564 companies in the second quarter of 2015.

Another indication of investment growth in Lampung is imports of capital goods into the province such as imports of machines ansd equipment and industrial transport vehicles.

Contraction was still recorded in the imports of capital goods in the second quarter of 2015 compared with the same period last year, but rising trend was recorded from the previous quarter.

The survey showed that investments was made mainly for capacity expansion by companies and procurement of new equipment.

Substantial increase in investment was recorded in the agricultural, fisheries and forestry sector, notably in animal husbandry sector.

A company is building stalls for dairy animals with an investment of Rp30 billion, and a cow breeding farm in Lampung to be completed and OPERATIONAL IN 2016.

Another company is carrying out feasibility study of project to build a modern slaughterhouse in the province.