Central Java infrastructure development: Pedal to the metal for connectivity

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.

Bisnis Indonesia: Pengembangan infrastruktur Jateng Tancap gas demi konektivitas

1 November 2019

By: Hafiyyan

Central Java’s economic growth target of 7% is a challenge and an extraordinary target. Hence, an extraordinary effort is also required.

Seeing the high target, the government is putting in extra effort. At the central government or the regional government level, all stakeholders are carrying out reorganisations and developments.

One of the sectors that is massively boosted in recent years is infrastructure to guarantee connectivity smoothness. The progress of the integrated projects is non-stop, despite Trans-Java toll road already connecting West and East Java in late 2018.

The government has a plan to implement five more toll road projects in Central Java, or at least projects that go through the province. The five toll segments are Gedebage-Tasikmalaya-Cilacap, Yogyakarta-Bawen, Solo-Yogyakarta-Yogyakarta International Airport (Kulonprogo), Demak-Tuban, and Semarang-Kendal.

Central Java Provincial Government Economic and Development Assistant Peni Rahayu said that regional leaders were currently involved in the Semarang-Kendal toll road project that was currently in the route determination discussion. The concept is mostly similar to Semarang-Demak toll road that is integrated with the sea wall.

One of the challenges of determining the route is that part of the land is submerged. Hence, the National Land Agency (BPN) will determine the land status, and the reimbursement value will be determined by the appraisal team.

“After the Semarang-Kendal route is approved by all parties, it will be tendered by the PUPR (Public Works and Public Housing) Ministry. The challenge is similar to Semarang-Demak [toll road] where part of the area is under water, even though it is finally clear,” he said on Wednesday (30/10).

Solo-Yogyakarta-Kulonprogo Airport toll road that spans 91.91 km has passed the route determination process. Hence, the project will enter the tender stage.

Besides toll road projects, the government will also optimise the development of the Southern Trans Road (JJLS) to balance the distribution of economic centres.

According to Peni, several toll road projects and JJLS are included in the 12 Central Java strategic projects that were proposed by President Joko Widodo. However, the President determined 3 super-priority projects, namely Borobudur Temple, Kendal Industrial State, and Brebes Industrial State.

“Even though there are three super-priority projects, they do not hamper the 12 strategic projects. As the super-priority [projects] need supporting projects, [the 12 strategic projects] keep progressing to support connectivity and economic distribution,” he explained.

For example, Semarang-Kendal toll road will support Kendal as an industrial centre, which will be promoted to be a Special Economic Zone (SEZ). Besides that, Central Java Provincial Government has operated the Semarang-Kendal BRT route since 28 October 2019.

The Central Java Provincial Government is developing new ports in Kendal SEZ and Brebes Industrial State. The port project will utilise the Public-Private Partnership (PPP) scheme, so it is open for private companies that want to invest.

Head of the Central Java Highways and Human Settlements Agency Hanung Triyono said that the ongoing toll road construction is the construction of Semarang-Demak toll road that spanned 27 km. The project is worked on by the consortium that consists of three companies, and it is called the PT Pembangunan Perumahan Semarang Demak.

Construction and land acquisition are carried out in parallel. It is expected that there will be a functional toll segment by 2021, and the whole project can be finished in 2024.

“Semarang-Demak toll road is crucial to support the connectivity of industrial and tourism areas. It is expected to be finished soon, similar to the quick Trans-Java toll road [development],” he added.

The route location determination process for other toll road segments in the pipeline, such as Solo-Yogyakarta and Bawen-Yogyakarta, is still ongoing. There are several location details that are slightly revised.

Hanung explained that JJLS development would still continue. However, the areas around Kebumen Regency are hills, so accuracy in determining the route is required.

The government is also considering optimising existing roads in the regency to lower the costs as land acquisition needs Rp1.2 trillion, which is similar to how much construction costs.

“The route goes up and down, then there is a conservation area which cannot be disturbed. Besides that, [we are] considering utilising existing routes without establishing new ones to lower the costs,” he said.

Based on Bisnis records, JJLS, which is in Central Java, has 46.07 kilometres left to be constructed from the total length of 211.95 kilometres.

The remaining road construction is suggested to be funded by the state budget. Land acquisition needs a budget of Rp1.17 trillion and construction needs a budget of Rp1.1 trillion.

Head of Central Java Transportation Agency Satriyo Hidayat said that there were 3 airport facility projects that were being focused on, namely Ngloram Airport in Cepu (Blora Regency), Dewandaru Airport in Karimunjawa Islands (Jepara Regency), and Wirasaba Airport in Purbalingga.

Central Java Provincial Government and Blora Regency Government will carry out land acquisition for Ngloram Airport, so the runway that spans 1,600 metres can be developed to accommodate ATR 72 aircrafts.

Dewandary Airport’s runway will be extended to be 1,600 metres in 2021. Wirasaba Airport, currently being developed by PT Angkasa Pura II (Persero), is set to be operational by May 2020, which is quicker than the original plan of being operational in November 2020.
 

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