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

  • Key Indonesian highway/bridge projects moving forward with funding
    August 14, 2014
    Infrastructure in Indonesia looks set to benefit from a series of a key highway and bridge projects, now gathering momentum. The country’s State Enterprises Ministry has announced plans for new road building worth a colossal US$25.66 billion. Work on a key highway stretch will commence in September 2014. This highway will connect provinces across the island of Sumatra, with the project looking set to be handled by the state-run firm Hutama Karya. The Indonesian Government has granted Bengkulu $1.22 billion
    Read More
  • Indonesia’s massive bridge project being planned
    August 30, 2019
    A massive bridge project is being planned for Indonesia that will play a key role in the country’s development of its new capital. Building the 7.35km Balikpapan-North Penajam Paser bridge will provide a connection to Penajam. Constructing the bridge is expected to cost over US$1.02 billion, with work expected to start in 2020. The bridge will be tolled. Serious issues are impacting on Jakarta, with the city suffering heavily from pollution and congestion, as well as its land area sinking. This combination
    Read More
  • Trimble helps bring Indonesia up to speed on the latest heavy construction technology
    March 28, 2014
    Indonesian infrastructure investment is seeing major highway expansion - Simon Gould writes Over the next 12 years, Indonesia has planned some massive infrastructure investments, under a master plan aimed at bringing it up to developed country status by 2025. Its Government’s Masterplan for Acceleration and Expansion of Indonesia's Economic Development (MP3EI) envisages infrastructure spending of US$400 billion between 2011 and 2025 to help achieve this (see sidebar for more on MP3EI). With limited funds of
    Read More
  • Tendering commencing for Indonesian toll road project
    July 21, 2014
    In Indonesia the tender process is commencing for the new Balikpapan-Samarinda toll road. The project had faced earlier delays due to problems over land acquisition along the route. These have now been solved and the project should be getting underway in October 2014. The Indonesian Government is investing some US$215 million in the project, although the inner of the tender will also be expected to invest in the scheme.
    Read More

Highlighted Content