Trans Papua development resumes
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 - Pembangunan Trans Papua kembali dilanjutkan
5 July 2024
By Heru Febrianto
Jakarta, ID – The Trans-Papua road project, which previously faced obstacles, is set to be resumed by the government. The development of this national road is anticipated to enhance logistics traffic, thereby reducing the prices of goods and services in eastern Indonesia.
The government’s effort to continue the construction of the national road is reflected on the signing of a public-private partnership (PPP) agreement on the development of the Jayapura-Wamena-Elelim segment of the Trans-Papua road in Papua Pegunungan Province.
Public Works and Housing (PUPR) Minister Basuki Hadimuljono explained that the construction of the Jayapura-Wamena-Elelim segment of the Trans-Papua road, spanning 50.14 kilometres (km), was meant to support the main transportation and logistics corridor as well as support intercity connectivity.
In addition, the development also aims to promote fairness, minimise regional disparities, and reduce the high cost of essential goods in each region.
“With PPP, inshallah (God willing), I believe the road can be completed immediately. Then, the elevated prices of goods and services in Wamena could be lowered, paving the way for the realisation of welfare in Papua and Papua Pegunungan,” Basuki said as quoted from the official website of the PUPR Ministry on Thursday (47/2024).
Basuki also explained that the aspiration to develop the road dated back to the era of President Soeharto in the 1980s to connect Jayapura-Wamena. The development is meant to support the logistics route to reduce the prices of goods and services.
“Just imagine, dozens of years ago, he [President Soeharto] made a statement to connect the logistics route in Jayapura-Wamena to reduce elevated prices. We have tried our best, so the construction will resume today,” he stated.
The progression of the Trans-Papua national road was halted due to interference from armed criminal groups. Furthermore, the national road network, which stretches 4,330.07 km from Sorong City in Southwest Papua to Merauke in South Papua, presents challenging terrain as it is situated approximately three to four thousand feet above sea level.
Project value at Rp3.3 trillion
During the occasion, four significant agreements were signed. The first was the signing of a PPP agreement between the Highways Director General and the President Director of PT Hutama Mambelim Trans-Papua. The second was the signing of an infrastructure provision cooperation (KSPI) agreement between the same parties. The third was the signing of a guarantee agreement between the President Director of PT PII (Persero) and the President Director of PT Hutama Mambelim Trans-Papua. Lastly, a regress agreement was signed between the PUPR Minister and the President Director of PT PII (Persero).
PT Hutama Mambelim Trans-Papua (HMTP), the business entity determined as the winner of the tender, was established by the consortium of PT Hutama Karya (Persero) and PT Hutama Karya Infrastruktur (HKI).
HMTP President Director Dadi Suprapto explained that the Jayapura-Wamena segment of the Trans-Papua road served as a crucial logistics route. This route connects three provinces and eight regencies in Papua Pegunungan.
“The Memberamo-Elelim section of the Jayapura-Wamena segment is located in Yalimo Regency, Papua Pegunungan Province. It spans 50.14 km from KM 366+90 to KM 416+830,” Dadi stated.
Dadi further clarified that the responsibilities of HMTP spanned a wide range of tasks. These include designing, building, financing, operating, maintaining, and transferring (DBFOMT). The concession period for these tasks is set at 15 years. This period includes two years dedicated to construction, followed by 13 years of maintenance and operation.
The scope of the construction includes several elements, a bridge, a motorised weighing unit, and the handling of slopes and cliffs. It also covers operations and maintenance during the service period. The return on investment will be facilitated through the availability payment (AP) scheme. The project, with an investment value of Rp3.3 trillion, is backed by the government through PT PII.
“HMTP is targeting to complete the Mamberamo-Elelim section of the Jayapura-Wamena segment of the Trans-Papua road in Papua Pegunungan Province in line with the conditions specified in the agreement. The focus will be on ensuring excellent quality,” Dadi added.
Public transportation required
A transportation observer from Unika Soegijapranata, Djoko Setijowarno, said that the construction of the Mamberamo-Elelim section of the Jayapura-Wamena segment of the Trans-Papua road practically would open access to Jayawijaya Mountains.
This access is expected to enliven public transportation from and to Jayawijaya Mountains. “I think the route has been eagerly anticipated by the residents of Papua, so we expect public transportation access from and to the location,” he told Investor Daily.
According to Djoko, the development of the Trans-Papua road is unique as the maintenance will be handled by an SOE, which is expected to ensure superior quality control.
On the other hand, the government only needs to provide public transportation. This could include buses or other modes of transport, with the aim of serving all citizens in Papua. “It is fine if it needs to be subsidised, similar to other pioneer land transportation in other regions. Gradually, we anticipate that private companies will also begin to provide transportation services,” he revealed.
He emphasised the need for robust collaboration among all stakeholders to facilitate the provision of subsidies from the central government to the regional government. “This could take the form of public service obligation or pioneer land transportation. The scheme would involve providing buses through a buy the service arrangement. In this setup, the government would be responsible for providing the facilities, while the regional government would seek out the operator,” he added.
