Government Constructs Toll Road to Tanjung Carat Port, Budget Exceeds Rp26 Trillion

JAKARTA - The government is undertaking the construction of a toll road connecting to the New Palembang Port in Tanjung Carat, Banyuasin Regency, South Sumatra, with the project scheduled to begin in the latter half of 2026.

This 80-kilometre toll road project, estimated at Rp26 trillion in investment value, is specifically designed to cut the high logistics costs that have long plagued the industrial sector and eroded economic value addition in the Sumatra region.

Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu emphasised that South Sumatra Province possesses massive natural resource strengths, ranging from giant coal reserves, oil and gas, to plantation commodities such as rubber, coffee, and palm oil. However, this vast economic potential remains constrained by poor goods distribution, which impacts the competitiveness of products in the market.

“The main issue there, particularly, is the unresolved logistics problem. This causes two main things: first, limited volume of commodities exiting, and second, relatively high logistics costs, making commodities from South Sumatra lack strong competitiveness,” said Todotua during a press conference at the BKPM office on Wednesday (13/5/2026).

The government, according to Todotua, is taking swift action through the signing of a memorandum of understanding for infrastructure integration cooperation plans in the region, involving several state-owned enterprises such as Hutama Karya and the South Sumatra Provincial Government. The addition of unimpeded access to Tanjung Carat Port is believed to become a new lifeline that will boost the overall supply chain performance.

“The existence of this toll access is expected to improve logistics efficiency and quality, not only for South Sumatra Province but also for other provinces like Jambi. The strategy is for two contexts: first, to increase the volume of commodity flows in the South Sumatra region to enable them to exit, and second, to optimise logistics costs and supply chain quality,” he explained.

Technically, this expressway is designed as a spur route that will extend the backbone of the Trans-Sumatra Toll Road (JTTS). Its branching point will be drawn from the currently operational toll gate to create a direct route spanning dozens of kilometres to the port area.