Indonesian Political, Business & Finance News

New Toll Road Development Fund Management Office Established: How Does It Differ from BPJT?

| Source: CNBC Translated from Indonesian | Infrastructure
New Toll Road Development Fund Management Office Established: How Does It Differ from BPJT?
Image: CNBC

The Ministry of Public Works (PU) has formed the Toll Road Development Fund Management Office as a Technical Implementation Unit under the Directorate General of Bina Marga. This office was established to strengthen the management of toll road network development funds derived from Non-Tax State Revenue (PNBP), ensuring they are more planned, transparent, and accountable.

Minister of Public Works Dody Hanggodo explained that the formation of the office is based on Article 93 of Government Regulation Number 23 of 2024 concerning Toll Roads, which allows for the creation of fund management units using a Public Service Agency (BLU) financial management pattern. This mandate was realised through the Minister of Public Works Regulation Number 17 of 2026 regarding the Organisation and Work Procedures of Technical Implementation Units within the Ministry of Public Works, established on 10 August 2026.

Dody added that toll road investments are substantial and involve long-term concession periods. Revenue and development funds must be managed effectively to further strengthen the toll road network. Through this, the public can also observe the productivity of the investments made and their benefits to the economy.

“With the formation of the Toll Road Development Fund Management Office within the Directorate General of Bina Marga, the Government wishes to emphasise the importance of robust fund governance, given the scale of investment and the long duration of toll road concessions,” said Dody.

The Head of the Toll Road Regulatory Agency (BPJT), Ni Komang Rasminiati, stated that with this new office, the management of toll road development funds will become more structured, ranging from the preparation of plans and programmes, revenue governance, and fund distribution to the management of data and information. Its functions also include analysing proposed revenue sources, PNBP administration, permits for the use of revenue, and monitoring the performance of fund distribution.

“During the transition period, PNBP from toll road operations and other revenues for network development will continue to be deposited into the state treasury until the office is officially established to implement the Public Service Agency financial management pattern in accordance with statutory regulations,” explained Komang.

She also clarified that the formation of the office serves as a complement to support toll road operations and does not alter the functions of the BPJT in toll road implementation.

“BPJT will continue to perform its regulatory and supervisory functions over toll road operations, including recommendations for tariff setting, investment oversight, the execution of toll road business agreements, and the fulfilment of Minimum Service Standards, as well as recommendations for operations after concessions expire, in accordance with applicable regulations,” she added.

The Director of Freeways at the Directorate General of Bina Marga, Dedy Gunawan, added that with these complementary roles, fund management can be carried out with more focus, while the functions of toll road implementation and supervision continue according to their respective authorities.

“A more structured governance also provides the government with a stronger basis to observe the relationship between incoming investment, generated revenue, fund distribution, and future toll road network development needs,” explained Dedy.

This approach aligns with the PU608 target of maintaining an Incremental Capital Output Ratio (ICOR) below 6 and supporting 8% economic growth, ensuring that infrastructure investment productivity and economic benefits are increasingly measurable.

“Moving forward, we want toll road investments to be increasingly measurable. We want to know how revenue is managed, where development funds are allocated, and how they benefit the economy. Strong governance will help toll road investments become more productive and sustainable,” concluded Dedy.

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