List of Failed Toll Road Tenders: Investors Withdraw Due to Financial Risks

JAKARTA - The government’s ambition to accelerate connectivity through toll roads is confronted by the reality of low investor interest. Several national strategic projects, from the Gedebage-Tasikmalaya-Cilacap (Getaci) toll in West Java-Central Java to the Gilimanuk-Mengwi toll in Bali, have recorded repeated failed tenders. Uncertainty in capital returns and high construction cost burdens are the main triggers for the lacklustre offers from Toll Road Business Entities (BUJT). The Gilimanuk-Mengwi toll, spanning 96.84 kilometres, for example, has experienced repeated failed tenders to the point that its scheme had to be changed to solicited (government initiative). Its investment value of Rp 25.4 trillion has yet to bind investors until the end of 2025 due to ongoing reviews of the route and feasibility studies that remain unresolved. A similar situation has occurred with the Getaci toll. This project, designed as Indonesia’s longest toll road, has experienced failed tenders twice. The Minister of Public Works (PU), Dody Hanggodo, acknowledged that the government is now taking a more realistic stance in prioritising infrastructure projects based on budget availability and traffic potential. Meanwhile, for the Gilimanuk-Mengwi toll, Dody emphasised that the re-qualification process (pre-qualification) is still being refined. The government is striving to ensure a more attractive financing structure for consortia so that this project, which stalled after the initial investors withdrew, can proceed promptly. The waning investor interest in toll road tenders correlates with findings from the Indonesian Toll Association (ATI). In its comprehensive research, ATI highlighted that many BUJT are currently under heavy financial pressure. The burden of loan interest and continuously rising maintenance costs is not matched by growth in revenue from toll tariffs.