Toll road regulator BPJT offers two projects with availability payment scheme

Photo by BPJT

JAKARTA (TheInsiderStories) – Toll Road Regulatory Agency (BPJT) plans to auction two toll road projects to investors, as a move to improve connectivity in the country.

The two toll roads are the Serang-Panimbang toll road section with a length of 83.9 kilometers and estimated investment of Rp11.4 trillion in Banten province and a toll road linking Samarinda and Bontang in East Kalimantan with a length of 94 km and estimated cost of Rp15 trillion.

The project is being offered through availability payment scheme, in which the government will set up the quality and service standard.

Earlier in February this year, the Indonesia government launched five toll projects worth Rp50.8 trillion (US$3.82 billion) that will be developed through Public Private Partners scheme. All the projects with the length 311.32 kilometers (km) is expected to be completed by 2019.

The five projects are Jakarta – Cikampek II elevated along 36.4 km with total investment Rp14.7 trillion, Krian – Legundi – Bunder – Manyar 38.2 km (Rp 9 trillion), Cileunyi-Sumedang – Dawu (Cisundawu) with a length of 60.72 km that will be connected with the port of Cirebon (Rp8.2 trillion), Serang – Panimbang along 33 km, which is part of the development of Tanjung Lesung (RpRp5.4 trillion) and Kuala Tanjung Mas – Tebing Tinggi – Parapat 143 km (Rp13.4 trillion).

“The progress of highway projects with Government Cooperation Enterprises (KPBU) schemes  is in line with the direction of the President to increase the involvement of the private sector’s role as the government’s State Budget is limited. The toll road projects require total investment of Rp4,800 trillion,” Minister for Economic Affairs and Chairman of Committee Acceleration of Infrastructure Development Priorities (KPPIP) Darmin Nasution said.

In the last of two years, the government has injected capital for state-owned enterprises (SOEs) Rp65.8 trillion and Rp50.4 trillion to carry out the infrastructure projects. On the same time, Minister of Public Works and People’s Housing Basuki Hadimuljono said, (BPJT) already paid Rp14.5 trillion from total funds Rp34 trillion for land acquisition.

List of Toll Projects Offering

No Toll Road Project Length (km) Land Price

Investment Value

1 Cileunyi-Sumedang-Dawuan                     58.50                     1,295                          12,331
2 Manado – Bitung                     38,70                        365                            4,163
3 Pandaan – Malang                     37,62                        294                            3,990
4 Balikpapan – Samarinda                     99,02                     1,266.64                          11,400
TOTAL                   233,84                     3,220.64                          31,884

Note: the project value is in billion rupiah