Multi-million dollar investment in Indonesian road toll projects

Millions of US dollars are being poured into new and expanding toll road projects in Indonesia.

Wijaya Karya (Wika), the Indonesian government-owned construction service provider, will build toll roads linking Kedung Badak to Kedung Halang and Pandaan to Gempol in Bogor through two contracts worth US$36.35million (IDR 340.80bn) and US$23.98million (IDR 225bn), respectively.

Awarded by highways operator Jasa Marga (JSMR), the contracts require the roads completion in 18 months.

The operator of the Tangerang-Merak Toll Road, Marga Mandala Sakti (Marga Mandala), will be allocating US17.12million (IDR 160bn) to increase the toll road’s capacity. It will be adding an additional lane between Cikupa and West Balaraja. The additional 8km stretch will contribute to a revenue growth of 10 to 15% starting from 2014, said Wiwiek D Santoso, the managing director of Marga Mandala.

Meanwhile, a preliminary feasibility study for a 30km Sunda Strait Bridge project in Indonesia will be taken over by the central government. Graha Banten Lampung Sejahtera consortium was supposed to carry out a study costing up to US$ 60million.

The now government funded study will cover development plans for surrounding areas as well as financing and construction. Work on the Sunda Strait Bridge project may begin in early 2014, with the project expected to take 10 years to complete.