Indonesian Minister for Public Works and Housing Basuki Hadimuljono doubts that construction of the Trans-Sumatra toll road will be completed by 2019. The minister already informed Indonesian President Joko Widodo about his concern. As usual, the main issue that forms a time-consuming matter in infrastructure projects in Indonesia is land acquisition. And while land prices on Sumatra are relatively cheap, the sheer size of land that needs to be purchased for this toll road makes it a challenging process. Regarding the Trans-Java toll road, on the contrary, Minister Hadimuljono says completion by 2018 is possible.

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Indonesia-based property developer HK Realtindo, subsidiary of state-owned firm Hutama Karya, plans to release a 30 percent stake through an initial public offering (IPO) on the Indonesia Stock Exchange in the fourth quarter of 2016. Funds generated through the IPO will be used for further business expansion. The company eyes 30 new projects in 2016, including the Trans Sumatra toll road. The company also plans to issue IDR 500 billion (approx. USD $36 million) in bonds and IDR 250 billion in medium term notes.

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Today, Indonesian President Joko Widodo will lay the first stone for the groundbreaking ceremony of the 2,700 km Trans-Sumatra toll road project, linking Lampung to Aceh on the resource-rich island of Sumatra (Indonesia’s second-largest island in terms of geographic size). The toll road, which is one of the key priority infrastructure projects for the Indonesian government, is estimated to require a total of IDR 300 trillion (USD $23.1 billion) of investment. Ten years after parts of the toll road were first tendered, construction can finally commence.

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The Indonesian government will speed up construction of the 2,700 kilometers-long Trans-Sumatra toll road by revising Presidential Regulation No 100/2014 on Toll Road Construction in Sumatra and by accelerating the land acquisition process. The Trans-Sumatra toll road will become the main highway on Sumatra that connects Banda Aceh in the north to Bandar Lampung in the south through 24 sections stretching across ten provinces. President Joko Widodo said that construction of the highway is to start in April 2015.

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In order to tackle Jakarta's grave traffic problem, brought on by a lack of quantity and quality of infrastructure and public transportation in combination with millions of daily travelers, governor Joko Widodo has given great priority to the development of the Jakarta Mass Rapid Transit System (MRT). Similar to the Sunda Strait Bridge, Jakarta's MRT project has been a topic of heated discussion and study for decades. However, pressure from Jakarta's governor Joko Widodo (who is better known as Jokowi) put an end to the lingering delay.

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In 2015, Indonesia's Ministry of Public Works will start with the land acquisition process for the construction of the Trans-Sumatra Highway. This highway is a 2,732.2 kilometers-long toll road connecting Banda Aceh in the north of Sumatra to Bandar Lampung in the south through 23 routes that connect ten provinces. The total land area that needs to be acquired is roughly 218,976 million m² and is expected to cost around IDR 15 trillion (USD $1.3 billion). By 2025, construction of the project should be finished.

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