Indonesia’s New President Halts Major Toll Road Projects
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JAKARTA, Indonesia – Indonesia’s newly elected President Prabowo Subianto has initiated a review of major infrastructure projects, including a significant number of planned toll roads. This decision, announced recently, has sparked debate about the nation’s economic direction and priorities.
According to a statement from a member of the Toll Road Regulatory Body (BPJT), the halt affects projects that haven’t yet begun construction. Ongoing projects and those in the feasibility study phase will continue. This clarification aims to address concerns that all toll road development would be fully suspended.
The BPJT official explained the situation, stating, ”There were instructions from President Prabowo at that time to stop several large projects. Well, toll roads are also affected, but what we will hold first, what we will stop first, are projects that are not yet underway.”
Specific projects impacted include the Puncak Toll road and a section of the Kulon Progo-Cilacap toll road. However,the duration of the delay remains uncertain. The official noted that the projects could resume if President Subianto directs it or if private investors step forward.
The decision to temporarily halt these projects comes as President Subianto’s management assesses the 2025 State Revenue and Expenditure Budget (APBN).This careful consideration of budgetary constraints mirrors similar fiscal reviews undertaken by governments worldwide when facing economic uncertainty.
The impact of this decision extends beyond Indonesia’s borders.The halt on these large-scale projects could affect international investors and perhaps impact global supply chains.The situation underscores the interconnectedness of global economies and the ripple effects of national policy decisions.
Further updates on the status of these toll road projects and the overall infrastructure review are expected in the coming weeks as the new administration finalizes its economic strategy for the year.
Indonesia Halts Some Toll Road Projects Pending Funding Review
The Indonesian government has announced a temporary halt to several planned toll road projects, citing concerns over funding and a thorough review of potential private investment opportunities. This strategic pause affects several key infrastructure initiatives, impacting both short-term construction timelines and long-term transportation planning.
According to a government official, “Basically, toll roads that have just entered the study will be held for now, unless there are private investors who want them, if thay want, please do so. But if those are requested from the government, we will hold them first.” The official further clarified that the Puncak Toll Road project, while attracting private investor interest, remains under feasibility review before proceeding.
Projects on Hold, Others Moving Forward
While some projects are temporarily shelved, others are progressing as planned. The government confirmed that toll road projects currently in the auction phase will continue without interruption. This includes significant initiatives such as the Gilimanuk-Mengwi Toll Road and the Gedebage-Tasikmalaya-Cilacap (Getaci) Toll Road. These projects are expected to proceed according to their established timelines.
The decision to temporarily halt certain projects reflects the Indonesian government’s commitment to responsible fiscal management and the strategic prioritization of infrastructure development. The review process aims to ensure the long-term viability and sustainability of these crucial transportation links.
This pause allows for a more thorough assessment of funding sources and the potential for private sector participation.The government’s focus is on securing lasting funding models that minimize financial risk and maximize the long-term benefits of these infrastructure projects for the Indonesian people.
The government’s approach underscores a commitment to transparency and careful planning in infrastructure development. The ongoing review process is expected to provide clarity on the future of the affected projects and solidify Indonesia’s commitment to sustainable infrastructure growth.
Indonesia’s Infrastructure Projects Put on Pause: A Closer Look with an Expert
Indonesia’s new president has initiated a review of major infrastructure projects, including a significant number of planned toll roads. This decision has sparked debate about the nation’s economic direction and priorities. We speak with Dr. Arif Rahman, an infrastructure economist specializing in Southeast Asia, to gain a deeper understanding of the implications of this move.
World Today News: Dr. Rahman, thank you for joining us.Can you provide some context on why the Indonesian government has decided to halt these toll road projects?
Dr. arif Rahman: Certainly. President Subianto’s administration is taking a cautious approach, prioritizing a thorough review of infrastructure projects in light of the 2025 State Revenue and Expenditure Budget.this reflects a commitment to fiscal duty and ensuring that these large-scale projects are financially sustainable in the long run.
WTN: So this isn’t necessarily a cancellation of these projects, but rather a temporary pause?
Dr.Rahman: That’s correct. The government has stated that projects already underway or in the feasibility stage will continue. The focus is on those projects that haven’t started construction,giving the new administration time to assess their viability and explore potential private investment opportunities.
WTN: What are some of the potential economic ramifications of this decision, both domestically and internationally?
Dr. Rahman: Domestically, this pause could create some uncertainty in the construction sector and impact employment in the short term. However, it also presents an possibility for the government to analyze the projects’ long-term economic benefits and ensure they align with the country’s overall development goals. Internationally, it could possibly affect foreign investors who were interested in these projects, and it may have a ripple effect on global supply chains if these toll roads were intended to facilitate trade.
WTN: How do you think this move will impact Indonesia’s reputation as an investment destination?
Dr. Rahman: It’s a mixed bag. On one hand, it demonstrates the government’s commitment to openness and responsible fiscal management, which can be attractive to investors seeking stability. On the other hand, any delays or uncertainty can be perceived as a risk factor. Ultimately, much will depend on how effectively the government communicates its plans and builds confidence in its long-term infrastructure strategy.
WTN: What can we expect to see in the coming weeks and months regarding these projects?
Dr. Rahman: I anticipate that the government will release further details about its economic strategy and infrastructure priorities. This will likely include a clearer timeline for the review process and potentially some adjustments to the original plans. It’s important to remember that infrastructure development is a long-term undertaking, and Indonesia remains committed to improving its transportation network. This temporary pause is highly likely a necessary step towards achieving that goal in a sustainable and responsible manner.
**WTN: Dr. rahman, thank you for offering your expertise on this complex issue.
