The Jakarta Post reports that the Indonesian government is to call tenders for construction of six new toll roads across the country, at a cost of Rp 77.69 trillion (US$9.1 billion). The report is somewhat confusing, as it claims there will be six toll roads added to Jakarta, and then lists five outside Jakarta and one within. All in all, what it does mean is that Indonesia is continuing to build a network of toll highways in and beyond Jakarta. The claim is that they are built by PPPs, but I am not so sure there is that much "private" in some of them, although they are certainly commercial.
Projects listed are:
- Jakarta Outer Ring Road NorthWest part 2 (7km) is to be built by a joint venture between state owned toll operator PT Jasa Marga and provincial government property company PT Jakarta Propertindo
- Cikampek-Palimanan (West Java but east of Jakarta) (116km) is to be built by PT Lintas Marga Sedaya, Malaysian (ultimately state owned) highway concessionaire PLUS (which owns PT Lintas Marga Sedaya) and PT Baskara Utama Sedaya for Rp 11.35 trillion (US$1.28 billion);
- Cileunyi-Sumedang-Dawuan (West Java, east of Bandung) (60km) to be built by the Ministry of Public Works and an undecided private firm for around Rp 9.63 trillion (US$1.08 billion);
- Pejagan-Pemalang (Central Java) (57.5km) is managed by a dedicated company called PT Pejagan Pemalang Toll Road which is seeking partners to build the project for around Rp 5.51 trillion (US$622 million);
- Gempol to Pandaan (East Java south of Surabaya) (13.6km) is to be built by PT Jasa Marga for around Rp 1.16 trillion (US$131 million); and
- Medan-Kualanamu-Tebing Tinggi (Sumatra) (60km) is to be built by the Ministry of Public Works and a yet to be identified private partner for around Rp 6.23 trilion (US$703 million).
Tolling in Indonesia remains dominated by manual cash tolls, but the extent of toll road development is such that it must present opportunities to modernise the nascent network. One of the interesting development in tolling in developing countries is how largely isolated the major developing country economies have been in developing and running toll systems. China, India and Indonesia have all developed systems and business rules independently, with little cross fertilisation between each other, or indeed from major developed country operators. How long before this fractionated sector starts to consolidate?