Draft Regulation on Toll Road Management by State-Owned Enterprises After Contract Expiration

The government is currently preparing Draft Regulation of the Minister of Public Works (“Draft Regulation”) on the Takeover and Operation of Toll Roads After the Expiration of Concession Period. This regulation affirms the government’s role in having the flexibility to determine the scheme for the continued operation of toll road sections whose concession periods have expired.

“This determination will be made based on an evaluation of state financial aspects, economic feasibility, and the public interest,” said Wilan Oktavian, Head of the Toll Road Regulatory Agency (BPJT), to Hukumonline.

This regulation also grants the Minister strategic authority to determine the fate of these toll road sections. There are two strategic options: converting the status to a toll-free road or directly assigning the operation to a State-Owned Enterprise (“BUMN”).