The vehicles that will pay lower toll-road fees are large vehicles grouped under Category III, IV and V under the Public Works Ministerial Rule No. 370/2007. They include 4-axle, 5-axle and 6-axle trucks.

Meanwhile, sedans, jeeps, pickups, small trucks and small buses are grouped under Category I vehicles, while 3-axle trucks are grouped under Category II vehicles.

"The spirit is not to cut toll road fees but to cut logistical costs," Basuki said after meeting with President Joko "Jokowi" Widodo at the State Palace in Jakarta.

He added that the government was considering whether to lower the fees and extend the length of concession or regroup the vehicles’ categories. With such approaches, toll-road fees could be lowered without affecting the internal rate of return for toll road investors.

"Most of the concessions are around 30 to 40 years. We will maximize it to 50 years," he said, adding that under the regrouping, vehicles in the III, IV and V categories would be grouped into one category.

The government will also offer a tax holiday and cash deficiency support in the form of a soft loan from state-owned financing company PT Sarana Multi Infrastruktur to help maintain steady returns for investors. (bbn)

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