Indonesian Political, Business & Finance News

Madiun Regency Ready to Implement PPP Road Preservation Project

| Source: ANTARA_ID Translated from Indonesian | Infrastructure
Madiun Regency Ready to Implement PPP Road Preservation Project
Image: ANTARA_ID

Madiun (ANTARA) - The Madiun Regency Government is ready to implement a road preservation project under a Government and Business Entity Cooperation (KPBU) scheme to address limited regional budget capacity for maintaining the quality and sustainability of local road infrastructure. The project is also in line with the 2025–2029 Regional Medium-Term Development Plan (RPJMD).

Madiun Regency’s Head of the Regional Development Planning, Research and Innovation Agency (Bapperida), Sodik Hery Purnomo, said in Madiun on Friday that preparations are under way through the drafting of a pre-feasibility study, with representatives of the Ministry of Finance, Commission B of the Regional House of Representatives (DPRD) and relevant regional government agencies (OPD) involved.

“While the pre-feasibility study is being prepared, all members of the KPBU coordinating team, the working group and the relevant OPDs are committed to providing data quickly and accurately so that the consultants can produce a comprehensive and objective analysis,” Sodik said.

The road preservation, or maintenance, partnership is expected to run for 11 years, with Rp192 billion in investment for the works and Rp49 billion in maintenance budget support.

The Madiun Regency Government will pay the business entity Rp47 billion annually through an availability payment for 10 years, starting once the roads are open for public use.

The plan covers nine road sections, totalling around 50 kilometres, which are ready for work: Balerejo–Muneng (about 7 km), Klitik–Dimong (8 km), Dimong–Mojopurno (9 km), Dungus–Sukosari (6 km), Sukosari–Dagangan (3 km), Uteran–the Magetan border (7 km), Bagi–the Ngawi border (2 km), Pagotan–Dagangan (1 km), and Dolopo–Mojorejo (7 km).

Sodik explained that the nine sections were selected because mapping identified them as priority routes supporting economic growth centres and connectivity between areas.

He said road infrastructure played a highly strategic role in people’s lives and regional development. It was important for strengthening inter-regional connectivity and supporting economic activity, among other things.

The project is also in line with the direction of Madiun Regency’s 2025–2029 RPJMD, particularly its goal of providing more adequate, evenly distributed and equitable regional facilities and infrastructure.

Road preservation is therefore an important need that must be addressed in a planned and sustainable manner, rather than through patchwork repairs that do not last.

The project also responds to rising infrastructure needs at a time when the region’s fiscal capacity must be managed carefully.

The regency hopes the pre-feasibility study will be completed on schedule, ensuring the road preservation project is fully prepared before proceeding to the next stage in accordance with applicable laws and regulations.

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