President Prabowo Subianto has entrusted infrastructure development projects, including toll road projects, to private companies.
"So, toll roads, ports, airports, I'll leave them to the private sector. Please, everyone get moving," Prabowo said, as reported by *Katadata.co.id* (1/16/2025).
"We entrust this to the private sector to play a bigger role. We hope they will be more efficient, timely, innovative, and can bring growth everywhere," he added.
During Prabowo's 2025-2029 administration, the government targets the construction of 2,461 kilometers (km) of toll roads.
This target is recorded in the Decree of the Minister of Public Works and Public Housing (Kepmen PUPR) Number 2790/KPTS/M/2024, issued on October 15, 2024, a few days before Prabowo's inauguration.
According to the Decree, national toll road construction projects for the 2025-2029 period are divided into two categories.
First, toll road concession agreements (PPJT) or carry-over projects. These are toll road projects targeted for the 2020-2024 period but not yet completed, requiring continuation in the 2025-2029 period.
Second, new road sections, namely new toll road construction projects targeted to operate in the 2025-2029 period.
These toll roads are targeted to be built on Java, Sumatra, and Bali. The largest projects are located in Java, both in terms of road length and investment value.
Here's a breakdown of the national toll road development targets for the 2025-2029 period by region, road length, and required investment costs according to the Kepmen PUPR:
1. Java Island
* Length of PPJT/carry-over toll road sections: 754.56 km
* Length of new toll road sections: 551.60 km
* Total length of toll road sections: 1,306 km
* Indicative investment cost: Rp430 trillion
2. Sumatra Island
* Length of PPJT/carry-over toll road sections: 433.19 km
* Length of new toll road sections: 678.74 km
* Total length of toll road sections: 1,112 km
* Indicative investment cost: Rp288 trillion
3. Bali Island
* Length of PPJT/carry-over toll road sections: none
* Length of new toll road sections: 43.28 km
* Total length of toll road sections: 43.28 km
* Indicative investment cost: Rp8 trillion
Cumulatively, the Ministry of PUPR estimates that the toll road development target for the 2025-2029 period will require a total investment cost of Rp725 trillion, plus Rp129 trillion for land acquisition.
"In order to achieve the 2025-2029 toll road infrastructure development target, innovative funding strategies are needed, involving synergy between the government and the private sector," as quoted from the Kepmen PUPR.
"Strategies for the provision and funding of toll road infrastructure development can be applied to the entire construction cycle, including initial planning, feasibility studies, transaction stages, detailed technical design, land acquisition, construction stage, operation and maintenance stage, efficiency improvements, asset sales, and reinvestment," it continues.