Hutama Karya to build Trans Papua Road worth Rp3.3 trillion

  • 19 Apr 2024

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Investor Daily - Hutama Karya garap jalan Trans Papua Rp3,3 triliun

19 April 2024

By Heru Febrianto

Jakarta, ID – PT Hutama Karya (Persero) is appointed as the winner of the tender for the construction of the Mamberamo-Elelim section of the Jayapura-Wamena segment of the Trans-Papua road in Papua Pegunungan Province worth Rp3.3 trillion.

Hutama Karya Corporate Secretary Executive Vice President Adjib Al Hakim said that the consortium of Hutama Karya and PT Hutama Karya Infrastruktur (HKI) was appointed as the winner of the tender for the construction of the Mamberamo-Elelim section of the Jayapura-Wamena segment of the Trans-Papua road in Papua Pegunungan Province by the Public Works and Housing (PUPR) Ministry. The project will be executed using the public-private partnership (PPP) scheme.

The project was previously studied after conducting market research on the Trans-Papua project on 6 September 2022. It involves an investment value or a capital expenditure (capex) of Rp3.3 trillion with availability payment as the return scheme. “The project will have a concession period of 15 years with two years of construction and 13 years of maintenance,” Adjib said in his press statement in Jakarta on Thursday (18/4/2024).

In this project, Hutama Karya with a portion of 55% and HKI with a portion of 45% will be responsible for technical and conceptual design, construction, financing source preparation, operation, maintenance, and transfer to the government after a 15-year concession period.

According to him, the Trans-Papua project is the main logistics route from Jayaura to Wamena spanning 50.14 kilometres (km). The work scope includes the handling of roads, bridges, slopes, cliffs, and weighing facilities.

In the next stage, the consortium of HK and HKI will establish a joint venture that acts as the implementing business entity for the Trans-Papua project throughout the concession period, initiated with the signing of a PPP agreement with the PUPR Ministry as the responsible party of the cooperation project.

Furthermore, Adjib explained that the Trans-Papua project would enhance economic growth, improve accessibility and connectivity, as well as expand the road network to increase public welfare in Papua.

“The project will be a major step in developing infrastructure in Papua, which is expected to bring significant impacts to the region,” Adjib stated.

Besides Trans-Papua, Hutama Karya is currently working on several other projects with the PPP scheme, including the development of facilities in Anggrek Port in Gorontalo for the Transportation Ministry and the Proving Ground in Bekasi with PT Indonesia International Automotive Proving Ground (IIAPG).

First segment set to be completed in 2024

The Trans-Papua road will not only facilitate the mobility of passengers, services, and goods, but also economically benefit the people in Papua, especially in West Papua Province. To realise equity, the continuous development of the Trans-Papua road must be completed.

The Trans-Papua road in West Papua is divided into two segments, namely Segment I and Segment II that have been connected since the end of 2017. Segment I of the Trans-Papua road that is set to span 547.81 km have been constructed for 537.1 km with 10.70 km being dirt road. Meanwhile, Segment II that is set to span 524 km has been constructed for 414.85 km with 109.152 km being dirt road.

“Both segments required 36 hours to traverse in 2017. Currently, in 2023, they can be travelled in less than 13 hours,” West Papua National Road Management Agency Head Mauluddin Said Latar stated.

The completion of the first segment from Sorong-Maybrat to Manokwari leaves 10.7 km of dirt road, Mauluddin hopes it can be completed in 2024.

“We hope it can be completed in 2024. Currently, we are still working on the landslide on the Kamundan-Akwey segment at KM273+500 in Ayawasi-Sisu in the operational area of West Papua Region III PJN (National Road Implementation) [Task Force],” Mauluddin stated.

Meanwhile, Segment II that encompasses the Manokwari(Maruni)-Mameh-Wasior-Papua Province Border segment has been constructed for 317,848 km. Regarding the construction of bridges until the end of Fiscal Year 2022 (addition to the MYC package until Fiscal Year 2024), 366 units have been constructed with a total length of 5,583 metres.

The number of permanent bridges constructed totals to 224 units (4,006 metres). Additionally, there are 142 units of semi-permanent bridges made of wood and box culverts spanning a total of 91,577 metres.  “In 2024, the plan is to replace the nine units of bridges that are made of wood spanning a total length of 95 metres,” Mauluddin said.

On a separate occasion, Infrastructure Financing Director General of the PUPR Ministry Herry Trisaputra Zuna said that the availability payment scheme was a scheme where payments were made based on the availability of services provided. This means the business entity will be responsible for the operation of the road. “The tender winner will be paid by the government if the project has been completed and operated,” he said to Investor Daily.

Herry explained that the payment will be paid in installations throughout the cooperation contract period in accordance with the level of service provided. “If the road has been completed and paid for, but is damaged at a later time, it will still be the responsibility of the business entity,” he stated.

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