Five state-owned enterprises (SOEs) signed a toll road concession agreement for the Yogyakarta - Bawen Toll Road project in Central Java with an investment value of Rp14 trillion (US$1.0 billion) - Photo: Privacy

JAKARTA (TheInsiderStories) – Five state-owned enterprises (SOEs) signed a toll road concession agreement for the Yogyakarta – Bawen Toll Road project in Central Java with an investment value of Rp14 trillion (US$1.0 billion). The consortium said the project will soon be built.

The companies that have won the auction are PT Jasa Marga Tbk (IDX: JSMR) with an ownerships 60 percent, PT Adhi Karya Tbk (IDX: ADHI) owned 12.5 percent, PT Waskita Karya Tbk (IDX: WSKT) hold 12.5 percent, PT PP Tbk (IDX: PTPP) have 12.5 percent, and PT Brantas Abipraya’ portion 2.5 percent.

“With the signing of this agreeement, I am very grateful because later Joglosemar (Jogja Solo Semarang) will become an area that is connected to each other,” said minister of public works and housing, Basuki Hadimuljono, while attending the signing procession on Friday (11/13).

Head of the Toll Road Regulatory Agency, Danang Parikesit, added that the toll road project was included in the National Strategic Project through Presidential Regulation Number 58 of 2017. Its also designated as a priority infrastructure project through a Regulation of the coordinating minister for economic affairs dated on August 31, 2017, he said.

Yogyakarta-Bawen Toll Road auction starts on Nov. 25, 2019 and announced the winner on Nov. 6. This toll road is part of the Trans Java toll road for Semarang-Solo segment. The Bawen section will be split to the south towards Yogyakarta.

Parikesit explained that this toll road crosses two provinces, Central Java with a length of 67.05 kilometers (km) and Yogyakarta along 8.77 km. The concession period of toll road is 40 years with total investments of Rp14.2 trillion and an estimated internal rate of return of 12.48 percent.

“The Yogyakarta Bawen toll road will begin construction in August 2021, after the land is cleared, so hopefully this can be done more quickly and it is expected to be completed and operated in the third quarter of 2023,” he revealed.

Next year, the ministry is planning to offer 13 projects worth Rp134.17 trillion with a road and bridge sector cooperation scheme between the government and business entities. In the 2021 State Budget, finance minister, Sri Mulyani Indrawati rises the infrastructure spending by 47 percent to Rp413.8 trillion from this year worth of Rp281.1 trillion to pursued several projects that had been delayed in 2020.

She elaborated, the projects ranging from roads, land connectivity, bridges, airports, railways, water and energy, also information and technology. While, in this year, said Hadimuljono, the government prepared an investment Rp395 trillion for toll road projects across the archipelago.

He added, the country offered nine toll road projects across the archipelago like Solo – Yogyakarta toll road with length 10 kilometers will begin the construction in September. The project need costs Rp16 trillion.

US$1: Rp14,000

Written by Editorial Staff, Email: theinsiderstories@gmail.com