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Utilities sector outlook cover

Utilities Sector Outlook

Major toll road expansion underway

Indonesian government planned a construction of 1,000 km of toll roads. This addition consists of Trans Sumatra, Trans Java, Samarinda – Balikpapan Toll Road and Manado Bitung Toll Road. Currently, the total length of operating toll road in Indonesia has reached 820.2 km. This number lags far behind other countries like Malaysia with 3.000 km, South Korea with 2.623 km, and China with 65.065 km. We could expect more toll roads in the upcoming years such as Bakauheni – Terbanggi Besar, Solo – Kertosono, and Cileunyi – Sumedang – Dawuan toll roads. The Public Works and Public Housing Ministry has signed an agreement for the developmentof a section of the 99 km Balikpapan – Samarinda toll road, Trans – Kalimantan highway, worth Rp 849 bn, with China accountable for 90% of the funding.

Improving visibility for pipeline gas development

The Energy and Mineral Resources Ministry has proposed that a number of oil and gas infrastructure projects be developed within the next few years and be funded by the state budget to build a better distribution system. There are seven projects in total worth Rp 10.8 tn being developed. Biggest project in terms of investment value is the development of a gas pipeline connecting Semarang in Central Java to Cirebon in West Java to finally reach a Balongan refinery in West Java.

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ECONOMIC UPDATE - Inflation heats up more than expected

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ECONOMIC UPDATE - BoP Review Indonesia’s BoP surplus but CA deficit