Hutama Karya works on Panorama I Flyover worth Rp2.7 trillion
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 - Hutama Karya garap Flyover Panorama I senilai Rp2,7 T
25 March 2025
Jakarta, ID – PT Hutama Karya (Persero) and its subsidiary PT Hutama Karya Infrastruktur (HKI) are continuously strengthening their position as key players in Indonesia's infrastructure development.
The Public-Private Partnership (PPP) project for the Panorama I Flyover (Sitinjau Lauik I), which will connect Padang City and Solok City, part of the national road and Trans-Sumatra Highway, exemplifies effective collaboration between the Government and the private sector in developing infrastructure in Indonesia.
The Director General of Infrastructure Financing of the Public Works Ministry, Rachman Arief Dienaputra, stated that this PPP project aims to enhance traffic safety and comfort at the Panorama I (Sitinjau Lauik I) bend, known for being accident-prone.
"Considering hazard identification and risk assessment, the Sitinjau Lauik I bend is classified as an accident-prone area due to its sharp road geometry. Therefore, it requires handling through geometric changes by constructing a new road that meets technical, safety, and traffic comfort standards," said Rachman in a statement in Jakarta on Monday (24/3/2025).
EVP Corporate Secretary of Hutama Karya, Adjib Al Hakim, stated that the PPP Flyover Sitinjau Lauik project is a strategic step in improving infrastructure quality in West Sumatra.
"With the PPP scheme, we can ensure that this project is not only responsive in meeting infrastructure needs but also sustainable and provides significant economic benefits to the local community," he said.
Adjib further explained that the signing agenda includes the PPP agreement between the Project Cooperation Responsible Party (PJPK) and the President Director of Hutama HPSL as the Implementing Business Entity (BUP) and the Infrastructure Provision Cooperation Agreement (KSPI) between PJPK and the President Director of Hutama HPSL.
This project involves PT Hutama Panorama Sitinjau Lauik (PT HPSL) as the BUP, formed by a consortium between Hutama Karya (55%) and HKI (45%). The project, valued at Rp2,793 trillion, is expected to be completed within two and a half years of construction and ten years of operation. The work includes technical planning, construction of roads and bridges (flyover) along 2,774 km, and preservation during the operational period.
Upon completion, the Sitinjau Lauik Flyover project is expected to provide various significant benefits to the people of West Sumatra, including improving connectivity between regions in West Sumatra, accelerating the mobility of residents, and facilitating access to public facilities; also reducing the risk of traffic accidents on the extreme Padang-Solok route, making travel safer and more comfortable.
"This flyover will also open wider access to leading tourist destinations in West Sumatra, such as Lake Singkarak and Harau Valley, thereby increasing the tourism potential in the area, as well as smoothing the distribution of goods and logistics. This project is expected to boost local economic growth, reduce logistics costs, and create job opportunities for local residents," concluded Adjib.
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