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Indonesia's Directorate General of Highway (Direktorat Jenderal Bina Marga) under the Ministry of Public Works and Housing has prequalified six potential bidders for the development of the Jalan Lintas Timur highway PPP in South Sumatra.

The group of qualified bidders is comprised of six local firms, namely: 

• Waskita Karya
• Brantas Abipraya and Adhi Karya
• Wijaya Karya
• Pembangunan Perumahan
• Acset Indonusa 
• A Sumber Mitra Jaya​-led consortium

The Directorate General of Highway intends to undertake asset preservation of the project utilising PPP scheme, with return on investment for the project company to be derived from Availability Payments. The purpose of the project is to ensure the good quality of the Jalan Lintas Timur Sumatera in South Sumatera Province as an effective solution to help accelerate Indonesia's national development.

The PPP modality for this Project shall be Build-Operate-Transfer (BOT), which includes financing, technical planning (Detailed Engineering Design), construction, operating and maintenance of the existing road during construction period, and operating and maintenance of the road after construction, and transfer of Jalan Lintas Timur Sumatera in South Sumatera Province.

The estimated investment cost of the Project is IDR1.34 trillion (US$94.2 million).

Indonesia is having a rising momentum regarding PPPs. As we reported in late July, the Ministry of Communication and Informatics of the Government of Indonesia launched a tender for the financing, design, procurement, construction, launch, operation and maintenance of a multifunctional government satellite. The total estimated investment of the project is IDR6.58 trillion (US$456.7 million).

Additionally, in January, we informed on a water supply PPP in West Semarang, Tugu, and Ngaliyan Areas valued at US$77 million.