New tolled highway plans for Indonesia

The authorities in Indonesia have set out extensive plans to source funding for new tolled highways. In all seven highway projects have been identified as crucial to expanding the network and improving connectivity for the Indonesian islands of Sulawesi, Java and Sumatra. Some US$25 billion in loans from overseas has been sourced by the Public Works Ministry of Indonesia.
November 1, 2012 Read time: 2 mins
Improved connectivity will benefit Indonesia's island of Sumatra

The authorities in Indonesia have set out extensive plans to source funding for new tolled highways. In all seven highway projects have been identified as crucial to expanding the network and improving connectivity for the Indonesian islands of Sulawesi, Java and Sumatra.

Some US$25 billion in loans from overseas has been sourced by the Public Works Ministry of Indonesia. But these loans will only be required if Indonesian firm 5206 Hutama Karya terminates its deals arranged for the projects. Indonesia’s Bureau of Planning and Foreign Loans has said that the projects may cost more than originally planned however. The Bakauheni-Terbanggi Besar toll road has increased in cost from $790 million to $869 million, an increase of $79 million.

The Pekan Baru-Dumai project has increased in cost from $670 million to $737 million, an increase of $67 million. The Solo-Kertosono project is now likely to cost $330 million, an increase of $30 million from the $300 million originally expected. The second stage of the Medan-Kuala Namu development will cost $66 million instead of $60 million, while the Medan-Binjai work will cost $72.6 million instead of $66 million. The Indralaya-Palembang toll segment will cost $82.5 million instead of $75 million while the Mamminasata project will cost $98.2 million instead of $85.4 million.

Work on the 2000km Trans-Sumatra toll road project will commence in March 2013. The first pahse of the project will be to buil a 300km section from Sumatra's Lampung province to Aceh province will be built during the construction's phase one. This will include the Palembang-Indralay and Medan-Binjai sections. The alignment will cross state-owned plantation and unused lands without interrupting existing roads. Funds worth close to $521 million will be sought by the firm from the government's state capital participation (PMN) scheme. Hutama Karya will co-develop the project with Perkebunan Nusantara (PTPN). The tolled highway project is due for completion at the same time as work on the Sunda Strait Bridge, which is due by 2022.

For more information on companies in this article

Related Content

  • Indonesia highway projects underway
    July 27, 2020
    Work on key Indonesian tolled highway projects is now underway.
    Read More
  • Indonesia toll road tender opening
    November 29, 2016
    The tender process for four major toll road projects in Indonesia will commence during 2017. The Indonesian Government is partnering with the World Bank to handle the four projects. The new Bali toll road will improve transport links in Bali, while the construction of the Tegal-Cilacap toll road will provided a much-needed new link in Central Java. Also being planned are the Jogya-Bawen toll road and the Sukabumi-Ciranjang-Padalarang toll road. Indonesia’s Toll Road Regulatory Agency is working on costings
    Read More
  • Work resumes on Indonesian tollway
    October 22, 2014
    Construction work on Indonesia’s Bekasi-Jakarta toll road has recommenced after a break of close to 20 years. The work on the 21km Bekasi-Jakarta toll road was originally started by Kresna Kusuma Dyandra Marga (KKDM), a consortium headed by state-run Waskita Karya, with a 60% share in the package. However work on the project was stopped in the late 1990s due to the Asian financial crisis. The deal for the link will see KKDM operating the toll road, which is costing US$600 million. State funds worth some $2
    Read More
  • Aceh Road Rehabilitation project wins key IRF GRAA award
    May 15, 2014
    The 9.1 magnitude earthquake and resulting series of tsunamis that struck Sumatra, Indonesia, in 2004 destroyed communities in 11 countries. Hardest hit was the Indonesian province of Aceh; an estimated 174,000 people were killed and 500,000 displaced. Basic infrastructure was left in ruin while the primary road along the west coast was destroyed. Vehicles making the trip had to navigate unpaved gravel roads, one-lane temporary bridges, and improvised ferries. Given the cataclysmic events that devastated th
    Read More

Highlighted Content