Infrastructure development: Jumbo tenders of toll road projects
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 - Pembangunan infrastruktur: Lelang jumbo proyek jalan tol
21 November 2023
By: Alifian Asmaaysia
Jakarta - Toll road project tenders will still be held by the government from 2023 to 2024. There are at least four projects that are ready to be offered to investors with a total investment value of up to Rp102.16 trillion.
Toll road construction projects are still relied on by the government to improve connectivity and boost regional economy.
According to Road and Bridge Infrastructure Financing Implementation Director of the Infrastructure Financing Directorate General of the Public Works and Housing (PUPR) Ministry Reni Ahiantini, the four toll roads that are ready to be tendered are scattered across Jakarta, West Java, and Bali.
“So, there are four projects that are ready to be offered from 2023 to 2024,” he said during a public discussion last week.
The four projects are Gedebage-Tasikmalaya-Cilacap (Getaci) toll road phase 1, Semanan-Balaraja toll road, Cikunir-Karawaci toll road, and Gilimanuk-Mengwi toll road.
Particularly for Getaci toll road project, Reni said that it has entered the prequalification announcement stage in October 2023. The investment value of the project that spans 108.3 km reaches Rp37.64 trillion.
The next project that is set to be tendered soon is Semanan-Balaraja toll road spanning 32.39 km that has an investment value of Rp15.53 trillion. It has currently entered the tender preparation stage.
Then, there is Cikunir-Karawaci toll road project that will span across two provinces, namely Jakarta and Banten. The project spans 40 km. The toll road project that has an investment value of Rp26.15 trillion is set to enter the prequalification stage in the fourth quarter of 2023.
“Cikunir-Karawaci [toll road] is elevated. In truth, the fourth quarter of 2023 is still too optimistic. Apart from the necessary technical adjustments, there are several other aspects that need to be addressed. Hopefully, the prequalification announcement can be made in December,” he said.
The last project that will be tendered soon is Gilimanuk-Mengwi toll road spanning 96.84 km that has an investment value of Rp22.84 trillion.
“Gilimanuk-Mengwi [toll road] is still being reviewed as it was initially proposed by a business enterprise. Land acquisition and construction processes have started to some extent. Now, it is currently being recalculated and review to find out how much has been allocated,” he said.
Completed projects
Meanwhile, throughout 2023, the PUPR Ministry through the Highways Directorate General has completed 217.8 km of toll roads.
Highways Director General Hedy Rahadian stated that, from 2020 to October 2023, the Highways Directorate General constructed 728.85 km of operational toll roads. In detail, 511.11 km were completed from 2020 to 2022 and 217.8 km were completed from January to October 2023.
Toll roads that are still under construction in 2023 include the toll road in Nusantara Capital City (IKN), Serpong-Balaraja toll road section 1B, and Kuala Tanjung-Tebing Tinggi-Parapat toll road sections 1-2.
In the future, Hedy continued that the government was committed to carrying out major projects in accordance with the national programme.
“The budget ceiling of the Highways Directorate General for fiscal year 2023 is Rp49.31 trillion. However, with several new assignments and major projects that need to be completed, this amount is expected to gradually increase until November 2023, reaching a total of Rp78.96 trillion,” Hedy said.
In fiscal year 2022, the Highways Directorate General absorbed a budget of Rp54.4 trillion, which represents 93.71% of the total budget. Concurrently, they achieved a physical realisation rate of 96.13%.
Furthermore, infrastructure development that is in line with the 2024 National Medium-term Development plan will continue to be carried out to improve national road connectivity.
