Indonesian Political, Business & Finance News

Trans-Sumatra Toll Road Not Yet Economically Viable, BAKN Urges State Takeover

| Source: VIVA Translated from Indonesian | Infrastructure
Trans-Sumatra Toll Road Not Yet Economically Viable, BAKN Urges State Takeover
Image: VIVA

The State Financial Accountability Agency (BAKN) of the Indonesian House of Representatives (DPR RI) is encouraging the government to find new financing schemes to ensure the sustainability of the Trans-Sumatra Toll Road (JTTS). This scheme is specifically required for toll sections that have not yet reached economic viability.

The Vice Chairman of BAKN DPR RI, Herman Khaeron, believes the state needs to consider the option of taking over toll road sections that require a long period to become profitable.

“In line with the absence of further funding through state capital injection schemes for State-Owned Enterprises (BUMN), there must be a scheme for the financing of the toll roads themselves,” Herman stated in an official release on Saturday (3/10/2026).

“However, in conditions where feasibility and economic viability have not yet been achieved and will certainly take a long time, in our view, they must be taken over by the state,” he added.

Herman Khaeron noted that a state takeover could serve as an alternative financing method for JTTS sections that do not meet economic thresholds. He cited the Availability Payment (AP) scheme used in the railway sector as a potential model.

Under that scheme, railway facilities are built by the government through the Ministry of Transportation, while a portion of ticket revenue is then categorised as non-tax state revenue (PNBP).

“We can look at the AP scheme used for railway operations. All railway facilities are built by the Ministry of Transportation, and from every ticket sold, a portion is taken as PNBP for the Ministry. This could essentially be applied to toll roads that have not yet achieved economic viability,” he explained.

Herman also highlighted that maintenance costs for the JTTS must still be covered even if economic viability has not been reached. He argued that this issue must be factored into determining future toll road financing patterns.

“Therefore, based on findings of ineffective governance, losses, and the fact that the PMM (toll road operator) does not include maintenance costs—which are quite substantial because it is unclear how long this will persist—it is a concern. There are no signs of when these sections will become economic, as the road segments are still disconnected from major economic growth centres,” Herman revealed.

He concluded that increasing the economic viability of the JTTS cannot rely solely on toll road management. Instead, it must be supported by the development of economic growth centres along the connectivity network to increase user numbers.

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