Surabaya-Mojokerto toll road.

JAKARTA (TheInsiderStories) – Indonesia’s Toll Road Regulatory Agency offered seventh toll road projects with an investment value of Rp151.13 trillion (US$10.79 billion) to be auctioned until December 2019. The projects have length 575 kilometers (km), the agency announced on Friday (07/19).

The agency’ head Danang Parikesit said six of the seven projects to be auctioned were proposals or initiatives from business entities. He added that currently there is one project which is in the tender process, namely the Balikpapan – Penajam Paser Utara toll road bridge along 7.35 km.

“The project is a business entity initiative with the right to equalize the offer or right to match at PT Tol Teluk Balikpapan,” he said. PT Tol Teluk Balikpapan is a subsidiary of PT Waskita Toll Road (WTR). With the right to equalize the offer, WTR has a huge opportunity to win the auction of projects worth Rp15.53 trillion.

While the six toll road projects are also ready to be auctioned with a total investment of Rp135.60 trillion. The six projects are Semanan – Balaraja toll road along 31.90 km, Kamal – Teluk Naga – Rajeg along 38.60 km, Patimban Port Access along 37.70 km, Gedebage – Tasikmalaya – Cilacap along 184 km, Solo – Yogyakarta – Kulon Progo along 91.93 km, and Yogyakarta – Bawen along 77 km.

The government is continuously working to realize an effective and efficient national transportation system to improve the mobility of goods and services. In an effort to support the national logistics system, the Government implements a policy of transaction integration on toll roads. From 2015 to June 2019, the agency has completed the operation of 985 km. From 1978 to June 2019, toll roads in Indonesia that have been fully constructed and operate have reached 1,780 km, the agency data showed.

Last year, the agency has auctioned two toll road projects to investors through an availability payment scheme, in which the government will set up the quality and service standard.

The two toll roads are the Serang-Panimbang toll road section with a length of 83.9 km 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.

Earlier in February 2017, the Indonesia government launched five toll projects worth Rp50.8 trillion that developed through Public-Private Partners scheme. All the projects with the length 311.32 km are 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 agency said the toll road projects require a total investment of Rp4,800 trillion until 2019. 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. At the same time, Minister of Public Works and People’s Housing Basuki Hadimuljono said, its unit already paid Rp14.5 trillion from total funds Rp34 trillion for land acquisition.

This is in line with Law Number 38 Year 2004 concerning Roads mandating that Toll Roads are held to improve the use and effectiveness of goods distribution services, and affirmed in services to support the improvement of economic growth and is aimed at increasing efficiency of distribution service in supporting the improvement of economic growth especially in areas that have high level of development.

President Joko Widodo has the plan to integrate the management of toll road across the country. The toll adjustment is expected to address the needs of logistics actors and encourage trucks or containers to utilize toll roads thus reducing arterial road burden.

A weeks ago, Lembaga Manajemen Aset Negara (LMAN), a state company under Ministry of Finance signed an agreement with 29 toll road business entities, 36 toll road sections and 35 memoranda of understanding with a total value of Rp13.1 trillion for 2019.

While the revised allocation for the fiscal year 2018, the agency said, consisted of 24 toll road business entities, 30 road segments toll road for 27 memoranda of understanding with a total value of Rp15.03 trillion.

The signing was related to the return of land bailouts for toll road projects that were included in the national strategic project list. Previously, the agency had paid for the national strategic project bailout in the form of toll roads worth Rp34.73 trillion or 92.9 percent of the billed Rp37.4 trillion in the first semester of 2019.

Furthermore, the previous land acquisition fund has been paid by toll road business entity to support the infrastructure development acceleration of National Strategic Project. Fund payments are also based on finance and development supervisory agency verification.

Until July 5, 2019, the agency has paid a bailout of the national strategic project in the form of a toll road amount to Rp34.735 Trillion or 92.8 percent of which was billed to LMAN in the amount to Rp37.403 Trillion.

US$1=Rp14.000

Written by Lexy Nantu, Email: lexy@theinsiderstories.com

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