IKN toll road management to be tendered in July 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 - Pengelolaan jalan tol IKN dilelang Juli 2024
24 June 2024
By Heru Febrianto
Jakarta, ID – The Public Works and Housing (PUPR) Ministry will tender the management and maintenance of the Nusantara Capital city (IKN) access toll road following its scheduled completion in July 2024.
PUPR Minister Basuki Hadimuljono said the tender aimed to acquire a toll road business entity to manage and maintain the IKN access toll road. “Yes, its operations will be tendered,” Basuki said, as quoted by Antara in Jakarta on Friday (21/6/2024).
According to Basuki, the toll road project will follow a tender scheme that allocates state budget (APBN) funds to a BUJT. This scheme has previously been used by the government for the Patimban Port access toll road.
“Similar to our other toll roads. For instance, the Patimban toll road was constructed inexpensively using APBN funds,” he said.
Other projects include Suramadu Bridge, which was made part of a toll road and used APBN funds after its operation and maintenance was tendered. However, in 2018, the government decided to make Suramadu Bridge a non-toll bridge.
“It is the same. Only for its operation and maintenance so that it can be maintained and operated,” Basuki stated.
However, he ensures that the tender for the IKN access toll road will be conducted once its construction is completed. Previously, the PUPR Ministry scheduled phase 1 of the toll road to IKN in East Kalimantan to be completed in July 2024, before Indonesia’s Independence Day on 17 August 2024.
In June 2024, Basuki visited the construction site of the IKN toll road, which will provide access to the central government core area (KIPP). The IKN toll road will be connected to the Balikpapan-Samarinda (Balsam) toll road, specifically at KM 8 – Kariangau.
The IKN toll road will shorten travel time from Balikpapan to IKN’s KIPP. The current route via the Balsam toll road takes 2 hours and 15 minutes for 95 kilometres (km). The IKN toll road will cut this down to just 45 minutes for 57 km.
“The toll road network to IKN is expected to function before the ceremony on 17 August 2024 in IKN,” he stated at the time.
Phase 1 of the IKN toll road construction consists of three sections, namely section 3A (Karang Joang-KKT Kariangau) spanning 12.4 with a progress rate of 77.59%, section 3B (KKT Kariangau-Tempadung Interchange) spanning 7.3 km with a progress rate of 86.09%, and section 5A (Tempadung Interchange-Balang Island Bridge) spanning 6.7 km with a progress rate of 83.62%.
To enhance connectivity to Nusantara, the PUPR Ministry is also constructing a short-span Balang Island Bridge, which is a duplicate of the long-span Balang Island Bridge located 500 meters away. Construction of the new bridge began in January 2024 and has reached a progress rate of 79.87%. It is being built alongside the existing 512-meter bridge.
Direct appointment
Meanwhile, an infrastructure observer from Universitas Trisakti, Yayat Supriatna, said that the government could use APBN funds for toll road construction, especially for the IKN access toll road. However, according to him, the management and maintenance must be tendered to a BUJT.
“We only need to see if a BUJT is interested in its return on investment,” he said when contacted by Investor Daily.
Yayat explained that private toll road companies would need to make calculations since their responsibilities include both management and maintenance.
“Therefore, the tender scheme must be carefully examined. Will the government offer compensation or guarantees if the toll road fails to recoup its capital within a specified time period?” he explained.
He ensures that the IKN toll road can be completed using APBN funds. However, it is important to consider whether the toll road will be beneficial. As a last resort, a direct appointed may be necessary.
“The last option can be a direct appointment by the state. If a private BUJT enters, additional compensations could include managing an area within IKN.,” he revealed.
Yayat added that there were many examples of direct appointments by the state for toll roads that have not proven to be beneficial. For example, Hutama Karya has previously been appointed to construct and manage such toll roads.
“The state-owned enterprise (SOE) Jasa Marga also manages many toll roads that have not yet generated a return. Therefore, it is crucial to ensure that these potentially beneficial toll roads do not become unprofitable,” he added.
