Skip to main content

Trans-Sumatra highway deal for Indonesia

Funding sources are being looked at for the important Trans-Sumatra highway in Indonesia. The Indonesian Government has been holding discussions with the Asia Investment Infrastructure Bank (AIIB). A loan for the construction of the 130km stretch of tolled highway from Pekanbaru to Dumai is being considered. In all this stretch of highway is expected to cost some US$1.24 billion to construct with just under a third being funded by the loan.
July 25, 2016 Read time: 1 min
Funding sources are being looked at for the important Trans-Sumatra highway in Indonesia. The Indonesian Government has been holding discussions with the Asia Investment Infrastructure Bank (AIIB). A loan for the construction of the 130km stretch of tolled highway from Pekanbaru to Dumai is being considered. In all this stretch of highway is expected to cost some US$1.24 billion to construct with just under a third being funded by the loan.

Related Content

  • Major highway investment for Indonesia with key project on track
    March 11, 2013
    Work on Indonesia’s landmark Trans-Sumatera Toll highway is set to commence in 2013. The contractor Hutama Karya has been awarded the deal to carry out the project. There will be a total 24 toll roads to be constructed on the route by the state-owned construction firm. Meanwhile Indonesia’s Ministry of Public Works has projected that overseas funding for its infrastructure projects in 2014 will be nearly US$784 million, similar to the figure set for 2013. Projects for funding in 2014 include several communi
  • India’s new highway projects finding funding
    October 20, 2016
    Funding has been found for a major highway project in India. The Asian Development Bank (ADB) is providing a substantial portion of the US$846 million of financing required for the 800km Visakhapatnam-Chennai Industrial Corridor (VCIC). In all the ADB will provide $631 million in the form of a series of grants and loans, which will be delivered in stages. Meanwhile the Indian Government will provide $215 million. The VCIC itself forms part of the 2,500km East Coast Economic Corridor (ECEC).
  • Jasa Marga picks up a loan for the Medan-Kualanamu project
    April 27, 2015
    In Indonesia, state-controlled toll road operator Jasa Marga has secured a loan worth nearly US$124 million to finance its Medan-Kualanamu-Tebing Tinggi (MKTT) toll road project. The loan is secured from a consortium of banks that include Bank BRI, Bank Mandiri and Bank BNI. The total cost of the project is around $315 million. The tender process of the project is being conducted and the winning bidder will be revealed in May. Jasa Marga operates and manages 13 toll road concessions directly and nin
  • Indonesia plans $490 billion infrastructure spend over the next five years
    October 8, 2014
    According to the government of Indonesia, US$490.7 billion (IDR 6,000 trillion) will be needed in the next five years for a series of major infrastructure projects across the country including roads, bridges, power plants, ports and airports. The government hopes that investment projects like these will boost its economic growth rate to 7% per annum versus 5% this year. This latest announcement follows on from an Indonesian government report last November, which unveiled plans to invest $35 billion in new