A consortium of state-owned and private firms, PT Jogjasolo Marga Makmur, signed a toll road concession agreement (PPJT) with the government on Wednesday to build and operate a Surakarta-Yogyakarta-New Yogyakarta International Airport (NYIA) toll road.
The Surakarta-Yogyakarta-NYIA toll road will span over 96.5 kilometers with an investment value of Rp 26.6 trillion (US$1.8 billion). Part of the toll road is scheduled to open in 2023, with the full toll road expected to be open by 2024.
The consortium consists of state-owned toll road operator PT Jasa Marga and construction firm PT Adhi Karya, as well as the private firms, namely construction firm PT Daya Mulia Turangga and PT Gama Group, whose combined stakes make up the majority of the consortium. The consortium gets a 40-year concession for the toll road.
Public Works and Housing Minister Basuki Hadimuljono praised the private companies’ involvement in the project, which he expected to become a model for future projects.
“Alhamdulillah [Thank God] the consortium is led by private companies, while Adhi Karya and Jasa Marga are involved to share their expertise,” he said during the agreement signing ceremony.
“The toll road entity can soon start the construction so it can open fully by 2023,” Basuki added.
The toll road will boost the connectivity of the so-called “golden triangle” of Yogyakarta-Surakarta-Semarang (Joglosemar) in Central Java and Yogyakarta, as well as nearby tourist destinations such as the historic Prambanan and Borobudur temples.
Basuki said the government expected to sign another PPJT for a Bawen-Yogyakarta toll road in October to further boost the Joglosemar area.
“The Joglosemar region will be fully connected and will become a golden triangle for economic growth, especially for the tourism sector,” he said.
During the ceremony, Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan said toll road construction projects would also help to boost Indonesia’s economy during the COVID-19 pandemic.
The economy shrank 5.32 percent year-on-year (yoy) in the second quarter this year as all components of economic activity fell.
“Toll road construction projects help mobilize our economy through the sale of cement, steel and other raw materials. Furthermore, the projects also absorb our workforce,” he said
He further urged the Public Works and Housing Ministry and related agencies to ensure the toll road’s quality through a thorough planning process from designing to monitoring, as many investors are keen to be involved in joining the projects.
“Many investors are interested in Indonesia’s industries. Therefore, we need to make good of our promise to make them comfortable when they do business with us,” he said.