Bina Marga prioritises constructing 2,500 km of toll roads: For 2020-2024 period

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 - Bina Marga prioritaskan bangun 2.500 km jalan tol: Periode 2020-2024

29 December 2020

 

Jakarta – The Highways Directorate General of the Public Works and Public Housing (PUPR) Ministry will prioritises the construction of 2,500 km of toll roads from 2020 to 2024. Hence, various innovations in road financing will be improved.

“So, we will prioritise accessibility improvement. So, we are concentrating to construct both non-toll strategic roads and toll roads to improve connectivity in priority economic growth areas and transport nodes, in line with the mandate set for road infrastructure,” Highways Director General, Hedy Rahadian said some time ago.

He sees that the current capacity of toll road construction is around 500 km per year. In the future, the capacity will be continuously improved with various innovations in road financing.

Then, Hedy continued that the Highways Directorate General was also targeting to construct 3,000 km of new national roads and to improve the national road condition to 97%. He also admitted that that task was not easy as the Covid-19 pandemic that occurred this year had caused the condition of national roads to decline from 92% to 90%, provincial roads to 75%, and regency roads to around 65%.

With that condition, he said that, to improve road condition, more resources would be required until 2024.

He continued that road condition must be improved to reduce travel time from 2.3 hours to 1.9 hours per 100 km in the main routes of the national road network. Moreover, Hedy has set a benchmark travel time of around 1.5 hours per 100 km.

“This is what we call competitive travel time. So, the gap that we must cover is still quite large. Hence, the strategy is to make toll roads as the backbone,” he said.

His reason is that, on toll roads, the speed can be developed to reduce travel time. He also mentioned that Malaysia and Thailand, which were the main competitors of Indonesia in economy, have better competitiveness in roads.

“Indonesia’s position is not good enough in the competitive index and the infrastructure index. Moreover, its competitiveness in roads is still lower than those countries,” he added.

Hedy is also encouraging a think tank and a technical guideline for the Highways Directorate General to achieve a competitive level to suppress logistics costs. Even if the performance index of logistics is improving, Indonesia’s position is still lower than the competing countries.

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