Indonesian Political, Business & Finance News

New 80 Km Toll Road Planned in South Sumatra, Requiring Rp 26 Trillion Investment

| | Source: FINANCE.DETIK.COM Translated from Indonesian | Infrastructure
New 80 Km Toll Road Planned in South Sumatra, Requiring Rp 26 Trillion Investment
Image: FINANCE.DETIK.COM

The government plans to build a new toll road section in South Sumatra to support connectivity to Tanjung Carat Port. This toll project is estimated to require an investment of around Rp 26 trillion.

Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu stated that the presence of this project is expected to improve logistics connectivity in South Sumatra. The toll road project and the Tanjung Carat Port project are targeted to begin construction this year.

He explained that the new toll road will connect to the existing Trans-Sumatra Toll backbone. From the Betung Toll Gate, a new toll road will be built towards Tanjung Carat Port, spanning approximately 80 kilometres.

“So this will be from the planned Trans-Sumatra Toll backbone at the Betung Toll Gate, there will be an additional toll line heading to Tanjung Carat, about 80 kilometres. Also, the existing Palembang-Prabumulih section will be pushed further by around 37 kilometres to Muara Enim,” said Todotua during a press conference on the Signing of the MoU for the Plan of Cooperation for the Integration of Toll Road Development to Tanjung Carat Port, on Wednesday (13/5/2026).

“Why? This is also being promoted to bring it closer to the natural resource potentials there. Regarding the total figure, it’s around Rp 26 trillion for the toll road construction itself,” Todotua added.

According to Todotua, the toll road and port development projects will use a Government and Business Entity Cooperation (KPBU) scheme. The Ministry of Public Works (PU) will assist with land acquisition, while the toll road construction will be handled by Hutama Karya (HK).

“So the Ministry of PU can support at least regarding the land. The rest of the construction will be from HK, and the financing will also seek support from Danantara. Our thinking is that we can consolidate the strengths of national banking,” he said.

Todotua assessed that this project will have a significant economic impact on South Sumatra and surrounding areas such as Jambi. The existence of the new toll road and port is believed to increase the distribution volume of various flagship commodities.

Some commodities projected to benefit include coal, coffee, rubber, and palm oil. One SOE that will utilise this infrastructure is PT Bukit Asam Tbk (PTBA).

According to him, the increase in commodity distribution volume has so far been hindered by logistics routes. With the new toll road and port, logistics costs are expected to decrease, thereby enhancing the competitiveness of South Sumatra’s commodities.

“One of them here that signed is Bukit Asam, where if we look at it in recent years, the volume of BUMN Bukit Asam has been relatively difficult to increase because the exit route has indeed been quite challenging. The hope is that with this toll road, first, the volume will rise,” he stated.

In this project, Hutama Karya will serve as the toll road development manager, while Pelindo is prepared to be the operator for the development of Tanjung Carat Port.

“The division of tasks, of course, for the toll road, Hutama Karya will be at the forefront, then for the port, it is Pelindo, and these SOEs will be one of the SOEs that will become tenants or users of the toll and port services,” Todotua concluded.

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