PT Margautama Nusantara (MUN), an Indonesian unit of Metro Pacific Tollways Corp. (MPTC), is seeking to raise approximately P80 billion to finance the construction of the Jakarta Outer Ring Road Elevated Toll Road, a 21.6-kilometer route that will span the heavily congested JORR.

In an interview on Monday, MUN chief operating officer Joko Santoso said the infrastructure project, aimed at alleviating traffic gridlock in one of Southeast Asia’s busiest urban areas, will connect Jatiasih in East Jakarta to Ulujami in South Jakarta.

“We awarded the P80 billion investment, and if things run smoothly, we anticipate breaking ground by the second half of next year,” Santoso said.

“We are working on detailed engineering designs that minimize the impact on existing contractors and ensure traffic safety,” he added.

The project is expected to be completed within three to four years.

However, Santoso noted that the complexity of building above an active roadway in such a densely populated area means advanced engineering techniques will be necessary, driving up the project’s cost.

Financing all set

“We are considering a 70 to 30 financing split. We are yet to decide on the guidance of MPTC whether to opt for international or domestic or hybrid financing. The remaining 30 percent will be funded internally,” he explained.

Once completed, the elevated toll road will increase capacity and streamline traffic flow, benefiting daily commuters and easing pressure on the existing ground-level road network.

With an expected concession period of 45 years, the elevated route is designed to handle more than a million vehicles daily, significantly improving traffic flow and connectivity in the region.

The project will feature dual two-lane roadways on the second, third and fourth levels, running above the existing JORR network.

Currently, the JORR sees daily traffic of between 450,000 and 570,000 vehicles, operating at a “C” service level with a saturation rate above 0.8. The high level of congestion results in slower travel times and frequent traffic jams.

The JORR Elevated Toll Road is a key part of the broader Trans-Java Toll Road network, a 676-kilometer series of toll roads linking the provinces of West Java, Central Java and East Java.

The Trans-Java network is considered a vital part of Indonesia’s infrastructure, facilitating the smooth movement of around 850,000 vehicles daily across Java Island, the country’s economic heartland.

‘We awarded the P80 billion investment, and if things run smoothly, we anticipate breaking ground by the second half of next year.’

MPTC recently invested $1 billion in the Trans-Java Toll Road network through a partnership with Singaporean investment firm GIC.

The investment secured a 35 percent stake in JTT, a subsidiary of the state-owned toll road company PT Jasa Marga Tbk.

With the addition of JTT toll roads to its portfolio, MPTC’s network now spans over 1,300 kilometers, strengthening its position both locally and internationally.