Jakarta. A consortium led by state-controlled toll operator Jasa Marga has signed Monday a 40-year concession agreement to construct and operate the Gedebage-Tasikmalaya-Cilacap toll road, which would span over 207 kilometers to connect cities in the southern part of Java and cost north of $3.9 billion.
Apart from Jasa Marga, the consortium consists of its peers Waskita Karya, Wijaya Karya, PP, Daya Mulia Turangga, Gama Group, and Jasa Sarana.
The consortium established a new company called Jasamarga Gedebage Cilacap, which would manage the Gedebage-Tasikmalaya-Cilacap toll road with a concession period of 40 years. It is estimated that the project would cost Rp 56.2 trillion ($3.9 billion) to build.
Penjaminan Infrastruktur Indonesia, or Indonesia Infrastructure Guarantee Fund, a state-owned infrastructure financing company operating under the Finance Ministry, has agreed to guarantee the project.
The toll road is one of the national strategy projects (PSN), which enjoys certain government benefits, such as tax breaks and expedited permit process.
Danang Parikesit, the head of the Toll Road Regulatory Agency (BPJT) at the Ministry of Public Works and Housing, said the Gedebage-Tasikmalaya-Cilacap toll road project would provide connectivity and benefits to the economy in the southern part of the west and central Java.
According to the plan, the Gedebage-Tasikmalaya-Cilacap toll road will be built in two stages. The first stage consists of two sections. Section I, namely the 45.20 km Gedebage-North Garut Junction and 50.32 km North Garut-Tasikmalaya Junction, is targeted to start in December 2022 and be completed in 2024.
While the second phase is 112 km long, consisting of Section III Tasikmalaya-Patimuan along 76.78 km and Section IV Patimuan-Cilacap along 34.35 km, whose construction will begin in 2027 be completed in 2029.
Terbanggi Besar-Pematang Panggang-Kayu Agung highway, abbreviated Terpeka, is currently Indonesia's longest toll road, measuring 189 kilometers in length. It links Lampung and South Sumatra provinces.