The Indonesian government has been keenly focusing on the development of toll roads in the country. The Ministry of Public Works and Public Housing, Indonesia, has targeted the construction of about 3,000 km of new roads and 2,500 km of toll roads by 2024. Besides, toll roads spanning about 4,480 km are planned to be constructed by 2030. A majority of these toll roads are being implemented as public-private-partnership (PPP) projects. Southeast Asia Infrastructure provides an update on key ongoing toll road projects in Indonesia…
Trans-Sumatra toll road
The Ministry of Public Works and Public Housing has built about 393 km out of 2,878 km of the trans-Sumatra toll road, which is scheduled for completion in 2024. The remaining 1,194 km is still under construction, while 1,291 km is in the preparation stage. The toll road is being developed on a PPP basis by the state-owned construction company PT Hutama Karya.
The project will connect Lampung on Sumatra’s southern tip and Aceh in the north. The project is currently facing funding issues. The banking sector has committed to providing IDR 72.2 trillion and the government will provide IDR 21.6 trillion; IDR 19.6 trillion of state capital injection has been allocated to Hutama Karya for the project.
Solo-Yogyakarta-New Yogyakarta International Airport toll road
The Surakarta-Yogyakarta-New Yogyakarta International Airport toll road will span over 96.5 km with an investment value of IDR 26.6 trillion ($1.8 billion). Part of the toll road is scheduled to open in 2023, with the full toll road expected to be opened by 2024. The project has been divided into three sections. In September 2020, the PT Daya Mulia Turangga-PT Gama Group consortium, along with PT Jasa Marga (Persero) Tbk and PT Adhi Karya (Persero) Tbk signed the concession agreement with the Ministry of Public Works and Housing. The consortium will get a 40-year concession for the toll road.
Serang-Panimbang toll road
The Serang-Panimbang toll road is one of the national strategic infrastructure projects in the country. The proposed toll road spans a length of 83.7 km and is expected to entail an investment of IDR 5.33 trillion. It is being implemented in three sections, namely, Section 1 of Serang-Rangkasbitung (26.50 km), Section 2 of the Rangkasbitung-Cileles (24.17 km), and Section 3 of Cileles-Panimbang (33 km). As of April 2020, about 57 per cent of the construction work had been completed on the 26.5 km Section 1. It is being developed in PPP mode by PT Wijaya Karya Tbk.
Manado-Bitung toll road
In September 2020, the Indonesian government inaugurated the Manado-Danowudu section of the Manado-Bitung Toll Road, the first highway in north Sulawesi. The new toll road section connecting the provincial capital and Danowudu in Ranowulu district spans 26 km, 65 per cent of the 40 km Manado-Bitung Toll Road. PT Jasamarga Manado Bitung, a subsidiary of PT Jasa Marga, broke ground on the toll road in 2017. The project is being implemented in PPP mode with a concession period of 40 years, and is expected to entail an investment of about IDR 6.19 trillion.
Balikpapan-Samarinda Toll Road
The 99.3 km Balikpapan-Samarinda Toll Road will connect the two largest cities in East Kalimantan, namely, Balikapapan and Samarinda. The project is divided into two sections – Section 1 consisting of Package 1 (25.07 km) and Package 5 (11.09 km), and Section 2 consisting of Package 2 (23.26 km), Package 3 (21.9 km) and Package 4 (17.7 km). As of December 2019, packages 2, 3 and 4 had been completed, and construction work on packages 1 and 5 was still under way. Package 1, 2 and 3 are being implemented by PT Jasamarga Balikpapan Samarinda. The construction of Packages 1 and 5 is being carried out by the government as part of the support for construction.
Semarang-Demak toll road
The 27 km Semarang-Demak toll road project is being implemented in Central Java to provide motorists from Semarang with an alternative toll road to reach Surabaya and other cities in East Java. PP Semarang Demak, a consortium of PT Pembangunan Perumahan (PP), PT Wijaya Karya and Misi Mulia Metrical (M3) have split the project into two sections, the first being the 10.69 km section connecting Semarang to Sayung in Demak and the second being a 16.31 km section connecting Sayung to Demak regency. PP and Wijaya Karya hold 65 per cent and 25 per cent stake in the consortium respectively, while M3 holds the balance 10 per cent stake. The project is being implemented in PPP mode with an estimated investment of IDR 15.3 trillion.
The process of submitting the green book and preparing the final engineering design plan is still on for Section I of the project. Meanwhile, the progress of the construction of Section 2 has reached 30.53 per cent for land acquisition and 10.56 per cent for physical projects. Section II is expected to be completed by end 2021. The project is a part of the Java Toll Road network that will eventually extend it from Merak in Banten to Pasuruan in East Java.
Cileunyi-Sumedang-Dawuan (Cisumdawu) Toll Road
The 62 km Cisumdawu Toll Road project is being implemented in PPP mode by PT Brantas Abipraya and PT Citra Karya Jabat Tol at an expected investment of IDR 8.21 trillion. Lack of financing and the country’s age-old issues with land acquisition have delayed project implementation. Currently, the progress of land acquisition in the 10.57 km Section I from Cileunyi to Rancakalong has reached 92.5 per cent and construction progress is 58.56 per cent. The 17.05 km Section II of Phase I (Rancakalong to Ciherang) had been completed in 2017. Under the Ciherang-Sumedang section (Phase II), land acquisition has reached 95.5 per cent, while about 85.46 per cent of construction work has been completed. Phases I and II are being developed by the government while Phases III-VI are being developed by the private players.
Desari toll road
The 21.6 km Desari toll road has been divided into three sections – the 5.8 km Section I from Antasari to Brigif, the 6.3 km Section II from Brigif to Sawangan, and Section III from Sawangan to Bojong Gede. In July 2020, the government inaugurated Section II of the project. The project is being implemented in PPP mode by PT Citra Waspphutowa, a subsidiary of PT Citra Marga Nusaphala Persada (CMNP), with 62.5 per cent shares owned by PT Citra Marga Nusaphala Persada, 25 per cent shares owned by PT Waskita Toll Road, and the balance 12.5 per cent shares held by PT Pembangunan Perumahan.
Other upcoming toll road projects
The upcoming projects include the 76 km Yogyakarta-Bawen toll road, 48 km Makasar-Maros-Sungguminasa toll road, 32 km Semanan-Balaraja toll road, 21.5 km Cikunir-Ulujami elevated toll road, 61.5 km South Sentul-West Karawang toll road, 37.7 km Patimban access toll road and 21 km Semarang Harbour toll road. Besides, bids are under evaluation for the 206.6 km Tasikmalaya-Cilacap Gedebage toll road.
Apart from land acquisition issues, the uncertain investment environment created by the Covid-19 pandemic will complicate Indonesia’s toll and national highway expansion plans.
