Skip to main content

Indonesia set for major PPP infrastructure tendering round

The Indonesian government is getting ready to tender for major infrastructure projects including roads to be developed under public-private partnership (PPP) contracts, the Jakarta Post reported. Public Works and Public Housing minister Basuki Hadimuljono said in Jakarta that the first priorities would be on the 94km Balikpapan-Samarinda toll road, the 7km Manado-Bitung toll road in North Sulawesi and a drinking water treatment system project in western Semarang, central Java. The projects will prove that P
March 10, 2015 Read time: 2 mins
The 1065 Indonesian government is getting ready to tender for major infrastructure projects including roads to be developed under public-private partnership (PPP) contracts, the Jakarta Post reported.

Public Works and Public Housing minister Basuki Hadimuljono said in Jakarta that the first priorities would be on the 94km Balikpapan-Samarinda toll road, the 7km Manado-Bitung toll road in North Sulawesi and a drinking water treatment system project in western Semarang, central Java.

The projects will prove that PPP contracts can work in Indonesia and they should help the government’s programme to support an annual economic growth rate of at least 7%, he said.

A tender for the Balikpapan-Samarinda toll road is expected to be ready in May and involves an investment of nearly US$879 million.

“The toll road will be divided into several sections,” he said. “The first section will be funded by the state budget and the fifth section will be funded by provincial budget. Meanwhile, the second, third and fourth sections will be open for tenders since the land acquisition process for those sections is almost finished.”

A tender for the Manado-Bitung toll road, expected to cost around $307 million, would be open by the end of the year, a delay while the government finalises land acquisition, he said.

Other projects that could be out to a PPP contract include the Bontang Refinery project in East Kalimantan and the completion of the Jakarta Mass Rapid Transit project.

Apart from traffic congestion, the Indonesian capital suffers from a high annual rainfall that puts a strain on the drainage system which includes the city’s road infrastructure. To ease the problem, World Highways reported in February that a US$1.88 billion combined road and drainage tunnel is being proposed.

Work is due to start this year, with the initial phase of the construction being carried out by Antaredja Mulia Jaya. The project is calling for two 12km tunnels to be complete in three years. One of the tunnels will link Tanah Abang with Ulujami and the other will connect Manggarai with Bale Kambang.

The project is similar in concept at least to the completed 5333 Stormwater Management and Road Tunnel's section constructed in Malaysian capital Kuala Lumpur.

For more information on companies in this article

Related Content

  • Slovak government stands firm over R2 Expressway, including Soroska Tunnel
    August 11, 2017
    Jan Durisin, head of Slovakia’s motorway operator NDS, has said that the R2 expressway, will go ahead despite watchdog fears of poor value for money. Completion of the R2, that includes the Soroska Tunnel, remains 2024, he told Slovakian news agencies. NDS, he said, will start looking for a contractor to start work in 2018 on a stretch of the expressway near the town of Roznava. R2 is a 360km route that will run from Kosice in the east across the country to Trenčín, near the Czech border in the west. It wil
  • Replace bridge for Vancouver’s Massey Tunnel could aid congestion
    December 21, 2015
    Opponents of a proposed 10-lane bridge near Vancouver, Canada, said the structure will encourage urban sprawl in a region that is already struggling with a booming population. The British Columbia provincial government recently opened the final round of public consultation for the planned 3.3km toll bridge likely to cost around US$2.54 billion.
  • Indonesia’s US$7.01bn for road building to boost connectivity
    August 23, 2013
    From its 2014 budget, the Indonesian government has allocated US$7.01 billion (IDR 74.90 trillion) to the Ministry of Public Works and $3.6 billion (IDR 39.2 trillion) to the Ministry of Transportation to develop national connectivity through road construction. The move, announced by President Susilo Bambang Yudhoyono, will see road transport capacity increased by 3,854.3km in Papua; East Nusa Tenggara; West Nusa Tenggara; Sulawsi; Kalimantan; Bali; Java; and Sumatera. The government will also maintain 3
  • Indonesian toll road project construction
    April 18, 2022
    Construction has started for a key Indonesian toll road project.