Infrastructure project: Final chapter of IKN toll road project tender
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 - Proyek infrastruktur: Babak akhir lelang proyek jalan tol IKN
15 August 2023
By: Alifian Asmaasyi & Rahmad Fauzan
Jakarta - The government is continuously constructing infrastructures in Nusantara Capital City (IKN). Soon, tenders for sections 6A and 6B of the IKN toll road project are set to be completed.
IKN Infrastructure Development Task Force Chairperson Danis Sumadilaga explained that the contract signing process for sections 6A and 6B of the IKN toll road project was expected to be completed next month.
“Sections 6A and 6B of the IKN toll road are still being tendered. The contract signing process is expected to be realised in September,” he said to Bisnis on Monday (14/8).
Section 6A of the IKN toll road covers the Riko-Outer Ring Road Plan segment, while section 6B covers the Outer Ring Road Plan-ITCI 3 Interchange segment.
Danis stated that sections 6A and 6B of the toll road could be used as a runway in certain conditions.
He also revealed that the Public Works and Housing (PUPR) Ministry would design sections 6A and 6B of the IKN toll road that span 3 kilometres to be completely straight, similar to a runway.
The PUPR Ministry is committed to accelerating the construction of Balikpapan-Samarinda toll road that is one of the accesses to the Central Government Core Area (KIPP).
The toll road construction process has commenced on three sections, namely section 3A (Karang Joang-KKT Kariangau), section 3B (KKT Kariangau-Tempadung Interchange), and section 5A (Tempadung Interchange-Balang Island Bridge).
For section 3A, PT Hutama Karya (Persero) is targeting the construction of the IKN toll road to be completed in 2024.
Hutama Karya President Director Budi Harto explained that, until July 2023, the construction progress of the IKN toll road segment only reached 10%.
“We are still optimistic about the toll road being completed next year,” he said.
Besides the IKN toll road project, Hutama Karya will also accelerate the construction of six segments of Trans-Sumatra Toll Road (JTTS) that are set to be completed this year.
According to Budi Harto, the six toll segments are Sigli-Banda Aceh, Kuala Tanjung-Pematang Siantar, Pekanbaru-Bangkinang, Bangkinang-Pangkalan, Kisaran-Indrapura, and Binjai-Pangkalan Brandan.
“Besides the new one, all [toll roads] will be completed [this year], except for Padang-Sicincin toll road that will be completed next year,” he said.
In detail, Budi explained that, among the six toll segments, Pekanbaru-Bangkinang toll segment has the highest construction progress, reaching 93.21%.
The land acquisition progress is reported to have achieved 100%.
The toll segment spans 40 kilometres (km) in total with a project value reaching Rp5.2 trillion. The toll road consists of two sections, namely section 1 (Pekanbaru-Sungai Pinang) spanning 9.11 km with 1.5 km constructed and section 2 (Sungai Pinang-Bangkinang) spanning 30.9 km that was inaugurated by President Joko Widodo (Jokowi) in January 2023.
Then, the construction progress of Kisaran-Indrapura toll segment that spans 48 km has reached 88.2%, while the land acquisition progress is reported to have reached 99.59%.
On the previous occasion, National Development Planning/National Development Planning Agency (PPN/Bappenas) Minister Suharso Monoarfa said that the capital expenditure in 2024 would be focused on more concrete interventions.
“Such as completing infrastructure development, developing quality and competitive human resources, implementing the elections, and accelerating the development of IKN,” Suharso said at Bappenas Tower in Jakarta on Friday (11/8).
Based on the data from the PPN/Bappenas Ministry that was received by Bisnis, next year, the government will allocate around Rp102.81 trillion from the state budget (APBN) to strengthen infrastructures that support economic development and basic services.
To maintain the state expenditure in 2024 to be more optimum and more on target, Suharso said that the allocation would be directed for priority matters.
“Next year, the priority allocation can be increased from the previous years. At least around 70% of non-operational expenditure from the budget ceiling that reaches Rp753,8 trillion,” Suharso said.
From fiscal years 2021 to 2023, he continued that the expenditure of ministries and institutions for priority matters was kept above 50% of non-operational expenditure.
In detail, productive expenditure reaches around 25%-28% of the total expenditure, while bureaucratic internal expenditure reaches around 4% of the total expenditure of ministries and institutions.
In 2024, Suharso said that the composition of productive/capital expenditure that supports PN and bureaucratic internal expenditure must be maintained to at least be on par with 2023.
In the expenditure posture of ministries and institutions, there is operational expenditure that covers expenditure for employees and goods as well as non-operational expenditure that covers priority allocation and implementation of tasks and functions of ministries and institutions that are not national priorities.
Besides that, Suharso continued that productive expenditure/capital expenditure that supports national priorities must be maintained so that the composition is larger than bureaucratic internal expenditure that covers rewards and work committee meetings.
