Indonesia’s new toll road projects through public private partnerships

Public private partnerships (PPP) are being set up by the Indonesian Government to construct three toll road projects valued at US$783.3 million (IDR 9.40tn). Tender for the projects will be launched in 2014, with construction due to begin the following year. A 39km Manado-Bitung road in North Sulawesi; a 37.6km road in Malang-Pandaan in East Java; and 15.8km Medan-Binjai road in North Sumatra comprise the three toll road projects. The three projects are due for completion by the end of 2017. Also in Indon
December 16, 2013 Read time: 2 mins
Public private partnerships (PPP) are being set up by the 1065 Indonesian Government to construct three toll road projects valued at US$783.3 million (IDR 9.40tn). Tender for the projects will be launched in 2014, with construction due to begin the following year. A 39km Manado-Bitung road in North Sulawesi; a 37.6km road in Malang-Pandaan in East Java; and 15.8km Medan-Binjai road in North Sumatra comprise the three toll road projects. The three projects are due for completion by the end of 2017.

Also in Indonesia, 4911 Citra Marga Nusaphala Persada (Citra Marga) plan to spend $183.33 million (IDR 2.2trn) on some of its key road expansion projects during 2014. The firm aims to commence work on the Depok-Antasari route and to add more lanes to the Jakarta Inner Ring Road to ease traffic congestion. Over a period of four years, it is estimated that the Jakarta Inner Ring Road project will cost some IDR 3.6tn.

Some IDR 2tn-IDR 2.5tn will also be raised by the firm from bond sales, a rise of two-fold from the initial plan. Indo Premier Securities, Trimegah Securities, Sucorinvest Central Gani and Ciptadana Securities have been appointed to become underwriters for the transaction. Citra Marga is also reportedly aiming to pay IDR 122bn in loans to its units, namely Girder Indonesia and Citra Margatama Surabaya.
Highway & Network Management

For more information on companies in this article

Related Content

  • New toll roads panned for Indonesia
    December 16, 2014
    Two major new toll road projects are now in planning for Indonesia. One is for the Palembang-Indralaya toll project while the other is for the Soreang-Pasir Koja toll road. The South Sumatra provincial government believes that the Palembang-Indralaya toll road project will cost US$319.2 million, and feature a pay-back period of 18 years and 11 months. The investors in the project include the construction firms, Jasa Marga and Hutama Karya as well as the provincial government-owned Prodexim. Hutama Karya is
    Read More
  • Indonesia US$5.33bn master plan for access and toll roads
    August 3, 2012
    The Ministry of Public Works in Indonesia has allocated US$5.33 billion (IDR 50.35 trillion) for a development master plan set to include improvements to vital access and toll roads. Among the projects in the Acceleration and Expansion of Economy Development master plan up until 2014 are access roads from Nabire to Narotali; from Manokwari to Sorong in Papua; from Sei Mangke to Kuala Tanjung in North Sumatra; and from Tanjung Priok to the Metropolitan Priority Area. It also includes the Cileunyi-Sumedang-D
    Read More
  • Indonesia’s new tolled highway projects
    September 29, 2016
    A series of major infrastructure projects are now moving forward in Indonesia, with financing sources having been identified for the work. Key projects include a tolled highway for East Java and a new tolled road and bridge link in East Kalimantan. Work on the 158km South Coast road project for East Java is moving forward with the securing of financing in the shape of a US$225.8 million loan from the Islamic Development Bank (IDB). A tolled highway link is being planned between Melawai in Balikpapan city
    Read More
  • New bridge planned for key Indonesia link
    July 22, 2013
    A feasibility study worth US$199 million will be carried out for the planned Sunda Straits Bridge in Indonesia. The bridge itself is expected to cost close to $20 billion to construct. It will be of major economic importance for Indonesia by providing a direct road link between the islands of Sumatra and Java. The link will connect Sumatra directly to Indonesia’s capital, Jakarta, and the bridge is expected to be 27km long in all. The Sunda Straits Bridge will actually be a series of links connecting the sm
    Read More

Highlighted Content