Government Prepares Rp 26 Trillion to Integrate Toll Road to New Palembang Port

JAKARTA — The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) is strengthening logistics connectivity in South Sumatra through plans to integrate a toll road leading to Tanjung Carat Port or the New Palembang Port. This project is projected to require an investment of up to Rp 26 trillion.

Deputy Minister of Investment and Downstreaming, Todotua Pasaribu, explained that this step is part of the government’s broader strategy to reduce national logistics costs, which have long been considered high. The signing of a memorandum of understanding (MoU) involving several strategic state-owned enterprises took place in Jakarta on Wednesday (13/5/2026).

“Today, we are signing a cooperation agreement for the planned integration of toll road connectivity. This is a concrete effort to support and follow up on the development plan for Tanjung Carat Port to make it more optimal,” said Todotua during a press briefing.

This integration will include the construction of a new toll road section approximately 80 kilometres long, connecting the backbone of the Trans-Sumatra Toll Road (JTTS) directly to Tanjung Carat Port.

In addition, the government will continue developing the Palembang–Prabumulih to Muara Enim section, spanning 37 kilometres, to facilitate access for distribution from natural resource areas.

Todotua emphasised that the project has two main objectives for the macroeconomy. First, to increase the distribution volume of South Sumatra’s flagship commodities to both domestic and export markets. Second, to strengthen the regional supply chain to make it more efficient and competitive on the international stage.

“With this toll road, the shipment volume of commodities such as coal, coffee, rubber, and palm oil is certain to rise significantly. This will undoubtedly trigger higher economic growth in the Sumatra region,” he added.

BKPM targets the physical construction process for this toll road and port project to begin this year, 2026. This aligns with reports of mature land readiness and agreed financing support from relevant stakeholders.