Indonesia is tendering toll roads for 10 billion US dollars

The Indonesian Ministry for Public Works and Housing (PUPR) has announced that it will tender nine Toll Road projects with a total length of 380 kilometers for more than US$10 billion US dollars in 2020. According to media reports, the projects are to be carried out as Public Private Partnerships (PPP). Originally only six new toll roads were planned for 2020.

Seven of the nine projects are planned in West Java, one in Central Java and one in Bali. Among other things, it concerns the connection of ports and industrial zones. The aim is to reduce logistics costs, which make up 23.5% of gross domestic product (GDP). In the World Bank's Logistics Performance Index (LPI) from 2018, the archipelago ranks 46th worldwide behind Thailand (32), Vietnam (39) and Malaysia (41). In terms of infrastructure overall, the country ranks 55th.

According to the ministry's strategic plan for 2020 to 2024, 2,500 km of new toll roads are to be built during this period. However, similar objectives have been clearly missed in the past. According to the ministry, there are currently 1,500 km of toll roads.