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

  • US$6 billion needed for Indonesia highway
    October 4, 2024
    A further US$6 billion is needed for a key Indonesia highway.
    Read More
  • A history lesson in private public partnerships
    April 12, 2012
    Michel Démarre gives some historical insights into public-private partnerships conceived to implement urban infrastructure projects, a concept that surprisingly dates back to as early as the 13th century! All over the world today, the role of public authorities in the process of planning and, in most cases, designing, financing and procuring urban roads is paramount. Even for modifications to existing roads, decisions are made by these public authorities (usually after due consultation with the population)
    Read More
  • A history lesson in private public partnerships
    February 15, 2012
    Michel Démarre gives some historical insights into public-private partnerships conceived to implement urban infrastructure projects, a concept that surprisingly dates back to as early as the 13th century!
    Read More
  • Turkish highways and bridge project financing secured
    June 7, 2018
    The financing package that will pay for Turkey’s €2.43 billion Malkara to Çanakkale highway and 1915 Çanakkale Bridge has now been secured. This follows on from Mott MacDonald completing its technical due diligence of the project documentation. The project will be handled under the PPP model. The centrepiece of the project is the €1.68 billion Çanakkale 1915 bridge. This will be over 4.6km long, with a 2,023m main span that will be the longest in the world for a suspension bridge. It will allow a clearance
    Read More

Highlighted Content