Sunday 23rd Jul 2017 - RUC Magazine

Indonesian Government Offers Toll Road Projects

News

Indonesia’s Ministry of Public Works and Housing said the government plans to offer three toll road projects to investors in the first quarter of 2016.

According to the Infrastructure Indonesia website the three projects are: (1) Cileunyi-Sumedang-Dawuan (Cisumdawu) in West Java; (2) Serang-Panimbang in Banten; and (3) Legundi-Bunder in East Java. These projects are part of the Indonesian government’s target to add 1,000 kilometres of new toll roads up to 2019 in an effort to enhance the country’s infrastructure development, hence improving connectivity across the archipelago and reduce logistics costs.

Herry Trisaputra Zuna, Head of the Toll Road Regulatory Agency (BPJT) within the Public Works and Housing Ministry, said the government intends to offer these three toll road projects to investors for bidding in Q1-2016 and concession agreements are expected to be signed somewhere in the third quarter of the year. These three toll road projects are assumed to be the last roads that will be offered by the Indonesian government under the Joko Widodo administration (2014-2019).

The first two sections of the Cisumdawu toll road (58.6 kilometres) will be developed by the government as this is part of the Trans Java toll road. The Serang-Panimbang toll road (83.9 kilometres) will be ready for the bidding process after the exact location has been secured.

Although the land procurement for the three toll roads has not been completed yet, the government already requests investors to declare their interest and provide necessary documents to the government in order to speed up the process. Land procurement for the Sumedang section of the Cisumdawu toll road has just begun, while only 10 per cent of the land procurement for the Legundi-Bunder toll road (29.3 kilometres) has been completed. Further land procurement will be undertaken parallel with construction, Zuna said.