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.
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