Get to Know Waskita Toll Road's Businesses, Land Acquisition and Tariff Adjustment Rules in Indonesia

It said the Ministry of Public Works and Housing Regulation Number 03/PRT/M/2017 says that the land acquisition for toll road construction is "the responsibility of the Government and the fund may be originating from the State Budget, which can be covered first by Business Entity."

The same regulation also added that the land acquisition fund for toll road construction is provided by the Government of Indonesia through the appointed agencies, which is Lembaga Manajemen Aset Negara.

However, in the case that when the fund is not available via LMAN, companies in the toll-road related development could use its own fund for land acquisition.

The regulation said LMAN will reimburse the developer’s fund used for land acquisition along with the cost of funds at the BI 7-day repo rate, according to the Ministry of Finance Regulation Number 139/PMK.06/2020.

This regulation also states that land acquisition funding can be paid directly by LMAN or covered first by toll road developer.

There is also Government Regulation Number 19/2021 (PP 19/2021) concerning the implementation of land procurement for development in the public interest, including land
procurement for toll roads.

WTR also cited the 2004 Road Law that regulates tariff adjustment. This law states that toll tariffs should be calculated based on the financial capability of toll users, operation and maintenance costs requirement, existing capacity expansion costs, and feasibility of investment.

"The amount of the toll road tariff is stated in the PPJT (toll road concession agreement) and can be charged to the end user after the issuance of the commissioning certificate Furthermore, the tariff will be evaluated and adjusted every two years based on the relevant region’s inflation," WTR said in its presentation.

Find the latest news on Indonesia in English on JakartaDaily.id, available on Google News

***