Trans-Papua road receives funding of Rp2.67tn
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 - Jalan Trans Papua dapan suntikan pembiayaan Rp2,67 T
2 January 2025
Jakarta, ID – PT Hutama Mambelim Trans Papua (HMTP) is set to receive syndicated financing of Rp2.67 trillion from PT Bank Rakyat Indonesia (Persero) Tbk (BRI) for the construction of the Mamberamo-Elelim section of the Jayapura-Wamena segment of the Trans-Papua road in Highland Papua Province.
HMTP is an initiating business entity formed by a consortium of PT Hutama Karya (Persero) and PT Hutama Karya Infrastruktur (HKI). Meanwhile, the construction of the Mamberamo-Elelim section of the Jayapura-Wamena segment of the Trans-Papua road is a public-private partnership (PPP) project.
On Monday (30/12), a signing ceremony was held for the syndicated financing agreement worth Rp2.67 trillion between HMTP and BRI, with PT Sarana Multi Infrastruktur (SMI) acting as a coordinating bank. The financing is also supported by PT Bank Indonesia (Persero) Tbk (BNI), which serves as a joint mandate lead arranger and bookrunner (JMLAB).
The syndicated loan structure involves five financing providers: BRI, SMI, BNI, Bank Syariah Indonesia (BSI), and Bank Pembangunan Daerah Papua (BPD Papua). Together, they are funding the construction of the Trans-Papua road.
Acting HMTP Director Kun Hartawan stated that the signing of the syndicated financing agreement is a follow-up to the signing of the PPP agreement for the construction of the Mamberamo-Elelim section of the Jayapura-Wamena segment of the Trans-Papua road, which took place at the Public Works Ministry Auditorium in July 2024.
"With this signing, HMTP can commence the construction of the Mamberamo-Elelim section of the Jayapura-Wamena segment of the Trans Papua road, spanning 50.14 km, a project that has been envisioned since the administration of President Soeharto," Kun stated in his press release in Jakarta on Wednesday (1/1/2025).
Furthermore, he added that this collaboration demonstrates how synergy can overcome challenges and help realise one of Indonesia's dreams.
"We hope this cooperative spirit can be maintained until the project is completed as planned, so it can provide lasting benefits to the people of Papua and Indonesia," Kun added.
The Jayapura-Wamena segment of the Trans-Papua road is a crucial access route that connects three provinces and eight regencies in Highland Papua. The construction is expected to improve accessibility, facilitate logistics distribution, strengthen the regional economy, and enhance public welfare, aligning with the Prabowo-Gibran administration's commitment through the asta cita policy to advance Indonesia's infrastructure.
The construction of the Trans-Papua road comes with a concession period of 15 years, divided into two years for construction and 13 years for service, with a total investment value of Rp3.3 trillion. Following this, HMTP will prepare the detailed technical plans for the road, bridges, and vehicle weighing facility, which will be followed by a two-year construction phase. After that, HMTP will be responsible for the preservation, operation, and maintenance of the road, bridges, and vehicle weighing facility during the 13 years of service.
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