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Travelling At Mudik And Beyond

Forbes Indonesia

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August 2018

As The big lebaran mudik (homecoming) came to an end last month, particularly from the city of Jakarta, most of the population must have paid greater attention to the preparedness of the road network, particularly of toll and main national roads.

- Scott Younger

Travelling At Mudik And Beyond

Each year some more kilometers of toll roads are added to the network, but the plan to have operating a further 1,000 km during the lifetime of this government has fallen behind.

The consequence of inadequate road infrastructure is manifest in high logistic costs, and Indonesia has the unwanted reputation of having the highest in Asia. Therefore, completing the toll road network and expanding it even further for the future, as a recent study has concluded, has to remain a priority.

One key reason for delay concerns the remaining issues around land acquisition, despite legislation to overcome difficulties for the chosen routes. Resolution of disputes is still time consuming.

A second important matter relates to the involvement of the private sector that currently play only a minor role in investment and ownership. Furthermore, in construction a serious matter seldom addressed is the lack of private contractors for the construction phase of a project.

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