Bloomberg Technoz, Jakarta - The Malaysian government is implementing a free toll road tariff policy on April 8-9 2024, to support the peak homecoming season for Eid 2024. So, why can't a similar policy be fully implemented in Indonesia?

Head of the Toll Road Regulatory Agency (BPJT) of the Ministry of Public Works and Public Housing (PUPR) Miftachul Munir explained that the policy of free toll road tariffs, if adopted in Indonesia, would have an impact on the domestic investment climate.

"Regarding this policy, of course it will have an impact on investment," explained Munir, Tuesday (2/4/2024).

As an illustration, in the case of tariff rationalization for the Trans-Java Toll Road (JTTJ), initially the tariff was set at IDR 1,400/km, but government policy requested that the tariff be reduced to IDR 1,000/km.

Thus, this tariff rationalization will not be provided free of charge, because the consequences will be returned at the time of special tariff adjustments.

"This special tariff adjustment is of course the next user who will pay. So the initial user gets the beneficiary, but the later user ultimately replaces the certainty," he explained.

Even so, Munir believes that the free toll tariff policy can actually be implemented, but further feasibility studies are needed.

"We will review the feasibility study to see whether it will have an impact on investment or concessions or tariffs," he explained.

Not the Operator's Domain

Secretary General of the Indonesian Toll Road Association (ATI) Kris Ade Sudiyono explained that according to him, the policy of freeing toll rates during the Eid homecoming period is not in the realm of operators, but in the realm of government policy.

He said, referring to Indonesian legislation, the construction of domestic toll roads involves investment from the private sector or other parties outside the government. As a result, the investment return process is based on the toll rates charged to road users.

"So from our perspective of toll road management, we cannot give a statement. We can only say, we follow the existing laws and regulations that the tariff is in accordance with the existing agreement," explained Kris.

"[What] we can currently provide is an initiative to help distribute traffic so that there are no build-ups at the same time and on the same day by providing incentives to cut toll rates before the peak homecoming days," he continued.

Previously, the Coordinating Minister for Development and Culture (Menko PMK) Muhadjir Effendy announced the implementation of a 20% discount on toll rates during the Idul Fitri 1445 Hijriah or Eid 2024 homecoming period.

The 20% discount on toll rates will apply to the Cikampek Main Toll Gate and Kalikangkung Toll Gate exits, including the Palimanan—Kanci, Semarang—Batang, and Jakarta—Cikampek Toll Roads.

The fare discount on homecoming traffic will apply from April 3 2024 at 05.00 WIB to April 5 2024 at 05.00 WIB. Meanwhile, for reverse flow, it will start April 16 2024 at 05.00 WIB until April 19 2024 at 05.00 WIB.

(SOURCE)