BKPM Optimistic that Tanjung Carat Toll Road Project Will Boost Sumatra's Economy

JAKARTA - The Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, is optimistic that the construction of the toll road connecting to the New Palembang Port in Tanjung Carat, Banyuasin Regency, South Sumatra, will drive Sumatra’s economic wheels. The 80-kilometre toll road project, slated for construction in the remaining part of 2026, is expected to maximise the economic potential of the area derived from natural resources. Todotua emphasised the abundant natural wealth in South Sumatra, ranging from massive coal reserves, oil and gas, to plantation products. However, these substantial resource potentials are often hindered by poor distribution efficiency, which impacts the selling power in the market. “Regarding the unresolved logistics issues, this causes two main things: first, the limitation or restriction of commodity volumes exiting, and second, the relatively high logistics costs, resulting in commodities exiting South Sumatra lacking strong competitiveness,” said Todotua during a press conference at the BKPM office on Wednesday (13/5/2026). Thus, the presence of this obstacle-free road access is projected to provide a solution to the supply chain bottlenecks that have long constrained the business progress of many companies. PT Bukit Asam serves as a real example of a state-owned entity that has faced difficulties in boosting shipment volumes in recent years due to challenges in outbound routes. “The hope is that with this toll road, first, the volume of commodities will increase, both coal commodities there and other commodities like coffee, rubber, palm oil, and so on. This will certainly boost the economic growth in the area,” he stated.