Indonesian Political, Business & Finance News

Kediri–Tulungagung Toll Road Progress Temporarily Halted

| Source: ANTARA_ID | Infrastructure
Tulungagung, East Java (ANTARA) — Progress on the construction of the Kediri–Tulungagung Toll Road in Tulungagung Regency, East Java, has temporarily come to a halt following the expiry of the location determination permit (penlok) in December 2025.

Tutur Pamuji Purbosayekti, Head of Land Acquisition and Office Development at the Tulungagung National Land Agency (BPN), said on Friday that there had been no official information regarding an extension of the permit from the Ministry of Public Works and Housing (PUPR).

"Given that the location determination permit expired in December 2025 and there has been no information about an extension, this project can be considered administratively suspended for the time being," Tutur said.

He explained that the Kediri–Tulungagung Toll Road is a National Strategic Project (PSN) under a Public-Private Partnership (KPBU) scheme initiated by PT Gudang Garam.

The toll road section is planned to span 44.17 kilometres with an estimated investment value of approximately Rp9.92 trillion.

According to Tutur, the location determination permit serves as the legal basis for the land acquisition process. An extension of the permit can only be submitted no later than six months before its expiry date.

In Tulungagung, approximately 20 per cent of affected land parcels have received compensation payments.

Meanwhile, for residents who have surrendered their land certificates but have not yet received payment, the documents are currently being held by the Commitment-Making Official (PPK).

"The PPK is prepared to return certificates to residents who submit a request. For those who have already received compensation, the status of their land has become state property," he said.

He added that should the project resume, the land acquisition process would need to start again from the beginning, including data collection, identification, surveying, and reappraisal of land prices.

The Tulungagung BPN confirmed it would continue to coordinate with relevant parties whilst awaiting further policy certainty from the central government.
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