Eri Cahyadi Partners with SMI to Secure Rp 885 Billion for Accelerating Surabaya's Western Outer Ring Road

The Surabaya City Government has taken a strategic step to untangle traffic congestion in the western region by partnering with PT Sarana Multi Infrastruktur (Persero), or PT SMI. Through funding from SMI amounting to Rp 885.85 billion, Surabaya is preparing to accelerate the construction of the Western Outer Ring Road (JLLB) and the widening of the Wiyung-Menganti corridor, which have long been bottlenecks for residents’ mobility. This momentum was witnessed directly by PT SMI’s President Director, Reynaldi Hermansjah, amid the increasingly urgent demands for infrastructure development in the metropolitan city. The JLLB project is designed to distribute vehicle loads more evenly, preventing them from concentrating in the city centre. Meanwhile, interventions on the Wiyung-Menganti route aim to eliminate traffic obstructions in an area with high economic activity intensity. Both projects are part of Surabaya’s seven major infrastructure plans for the 2026-2027 period, with a total funding requirement of Rp 3.16 trillion. He views the need for urban infrastructure as increasingly urgent, particularly in addressing congestion that directly impacts productivity. This project will directly reduce traffic bottlenecks in Surabaya while enhancing the city’s logistics efficiency as East Java’s economic centre. “Therefore, this financing is directed towards creating a more efficient transportation system and supporting the city’s economic activities,” stated Reynaldi. This funding injection provides significant impetus to the local fiscal posture. With PT SMI’s involvement, Surabaya City Government’s capital expenditure is projected to surge by 40.81% compared to the previous year. This increase is predicted to drive the Regional Gross Domestic Product (PDRB) to reach Rp 29.79 trillion, with a contribution from this financing estimated at Rp 9.1 trillion. Surabaya Mayor Eri Cahyadi affirmed that adequate connectivity is the primary foundation for the city’s competitiveness. Strengthening connectivity is key to enhancing the city’s competitiveness amid increasingly dynamic economic activities, while also promoting equitable economic growth in Surabaya. “This project will later become an important foundation in building a more efficient, integrated, and sustainable urban transportation system,” added Eri. Up to February 2026, PT SMI has recorded financing commitments to local governments across Indonesia amounting to Rp 37.08 trillion. This collaboration with Surabaya reinforces the national development direction that emphasises transportation system efficiency as the lifeline of regional economies. With JLLB, Surabaya is not only building roads but weaving more inclusive accessibility for its residents’ future.