Freeway: Toll roads will accelerate new investments
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.
Bisnis Indonesia - Jalan bebas hambatan: Tol bakal percepat investasi baru
7 August 2023
By: Afiffah Rahmah Nurdifa & Alfian Asmaaysi
Jakarta - President Joko Widodo stated that the operation of Bogor-Ciawi-Sukabumi toll road section 2 (Cigombong-Cibadak toll segment) spanning 11.9 km would open new investment opportunities in West Java.
Meanwhile, a consortium of a state-owned enterprise (SOE) and private companies has been determined as the winner of the tender for Cikunir-Ulujami toll segment of Jakarta Outer Ring Road (JORR) Elevated worth Rp21.26 trillion.
The President said that the operation of Bogor-Ciawi-Sukabumi (Bocimi) toll road section 2 could cut travel time from Jakarta to Sukabumi to 2.5 hours.
“The toll segment will accelerate the mobility of passengers and goods and anything related to investment. Based on the investor survey, West Java is ranked first as it has the most toll roads,” he said after inaugurating Bocimi toll road section 2 in Sukabumi on Friday (4/8).
The President said that the toll road could boost mobility and cut travel time. Usually, travel time from Jakarta to Sukabumi takes 5 hours. It can even take up to 8 hours due to traffic jam.
With Bocimi toll road section 2, Jokowi believes that the toll segment will facilitate the connectivity of the public’s economy in the industrial, goods, and services sectors. Moreover, Cigombong-Cibadak toll segment will be connected to West Java’s south coast area from Sukabumi to Pangandaran.
The President also hopes that Bocimi toll road section 2 that costs Rp3.2 trillion can improve access to tourism areas around Lido, Sukabumi, Pelabuhan Ratu, Ujung Genteng, and Geopark.
Bocimi toll road consists of four sections that have a total length of 54 km. Section 1 (Ciawi-Cigombong) spanning 15.35 km has been operating since December 2018.
Section 2 (Cigombong-Cibadak) that was inaugurated yesterday operated on a functional basis to facilitate Eid homecoming flow from 15 April to 1 May 2023.
There are two other sections, namely section 3 (Cibadak-West Sukabumi) spanning 13.70 km that has a land acquisition progress of 86% and section 4 (West Sukabumi-East Sukabumi) spanning 13.05 km that has a land acquisition progress of 9.9%.
Private companies and an SOE
On another occasion, Cikunir-Ulujami toll segment of Jakarta Outer Ring Road (JORR) Elevated that was constructed on top of the existing JORR has been won by a consortium of an SOE and private companies.
The Public Works and Housing (PUPR) Ministry has determined the winner to be the consortium of PT Marga Metro Nusantara, PT Adhi Karya (Persero) Tbk (ADHI), and PT Acset Indonesia Tbk (ACST).
PT Marga Metro Nusantara is a subsidiary of PT Nusantara Infrastructure Tbk (META), a toll road issuer of Salim Group. Moreover, PT Acset Indonusa Tbk (ACST) is a construction company of Astra Group.
The concession period is determined to be 45 years from the issuance of the work order to construct the toll road.
“The parameter that is currently in competition is the toll road tariff for group 1 in 2027 that has been set at Rp25,500,” the PUPR Ministry wrote.
Cikunir-Ulujami toll segment of JORR Elevated is a part of the toll road network in Greater Jakarta spanning 21.50 km with a width of 3.5 metres. Vehicles are planned to travel at a speed of 80 km per hour.
The starting point of the toll road is located in Jatiasih in Bekasi and the end point is located at Ulujami South Jakarta Interchange. JORR Elevated will be connected to the JORR network that is expected to reduce the load of the existing toll road as it has surpassed its capacity.
The construction of JORR Elevated is similar to Syeikh Mohamed Bin Zayed (MBZ) toll road that was acquired by META at the end of 2022. MBZ toll road is the longest elevated toll road in Indonesia spanning 36.84 km.
