Jakarta, ABIM (26/11/2023) – The Directorate General of Public Works and Housing Infrastructure Financing, on behalf of the Ministry of Public Works and Public Housing (PUPR), conducted a Market Sounding or assessment of market interest for the Sitinjau Lauik Flyover construction project through the Government Cooperation with Business Entity (KPBU) program (11/23).

Reni Ahiantini, Director of Implementation of Road and Bridge Infrastructure Financing, stated that the urgency of providing infrastructure services can be met through the PPP scheme without being completely depending on the government budget. Other ways in which the government can facilitate infrastructure development in Indonesia include guaranteeing public-private partnership (PPP) projects, offering partial construction financing, and providing feasibility support. These measures are anticipated to expedite the construction process.

“This Market Sounding activity is a forum for the government to convey comprehensive information regarding PPP projects. Aside from that, it is also to gather input, responses, and interest from business entities regarding PPP projects offered by the PUPR Ministry as the Person in Charge of Cooperation Projects (PJPK) or the Government Contracting Agency,” she explained.

The Sitinjau Lauik Flyover PPP project, which a business entity initiated (unsolicited), has a concession period of 12.5 years, an investment value of IDR 2,824 trillion, and a road length of 2,781 kilometers. This project’s investment return scheme consists of Availability Payment (AP) payments made by the government to business entities; auction proceedings are scheduled to commence by the end of the first quarter of 2024.
Reni further stated that the Sitinjau Lauik region is known for its steep inclines. Despite being a national route with a wide roadway, this path is not readily traversed by all vehicles. When ascending, heavy vehicles must utilize the outer side of the sloping road in order to acquire momentum.

The construction of the Sitinjau Lauik Flyover is intended to enhance road conditions by mitigating the risk of traffic incidents caused by the extremely steep gradient of the existing road. As a result, road users will be afforded a higher level of safety and security than in the past.(ABIM)