Integrating Indonesia’s Toll-Road Network Is Key to Cutting Logistics Costs

Indonesia needs to stop measuring toll-road progress mainly by the length of new roads and start making the existing network work as one system. That shift, according to economist and former finance minister Bambang PS Brodjonegoro, is essential to lowering logistics costs and strengthening national competitiveness.

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When we talk about logistics routes, the most important thing is connectivity. If it depends on toll roads, their connectivity must be ensured so that logistics routes become faster and cheaper. Physically, the most important thing is for the route to be seamless, without frequent payment gates.

The priority is seamless connectivity between toll-road sections and other modes of transport. Production centers, industrial areas, seaports and dry ports should be linked through a network that allows goods to move faster and more cheaply. “When we talk about logistics routes, the most important thing is connectivity,” Bambang said. “If it depends on toll roads, their connectivity must be ensured so that logistics routes become faster and cheaper. Physically, the most important thing is for the route to be seamless, without frequent payment gates.”

Physical integration alone, however, would not solve the problem if drivers still face repeated toll barriers. Bambang urged operators to create a single, easier system, using shared lanes and distributing revenue proportionally according to each company’s investment. “We also hope all toll-road operators can create a system that makes things easier for users,” he said. Separate toll gates and tariff differences, he added, should not disrupt logistics movements.

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We also hope all toll-road operators can create a system that makes things easier for users. They should not focus only on their individual needs, with separate toll gates, but should work together in one lane and divide revenue proportionally according to the size of their investment.

Bambang said existing policy and regulations often fail to bind all parties involved. The government therefore needs to establish firm rules that define toll-road integration as a national interest, rather than a matter for individual toll-road business entities. With limited room in the state budget, the Public Works and Transportation ministries should provide a collaboration platform and a strong legal framework. Such certainty could serve as a non-fiscal incentive for investors.

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We cannot move forward alone. The government, toll-road business entities, the business community, associations, academics and other stakeholders must move in the same direction.

The Indonesian Toll Road Association forum also highlighted the need for cooperation. Public Works Minister Dody Hanggodo said, “We cannot move forward alone. The government, toll-road business entities, the business community, associations, academics and other stakeholders must move in the same direction.” Association chairman Rivan A. Purwantono said the industry should improve public services while maintaining business sustainability, adding, “We want to build a toll-road ecosystem that creates sustainable value for road users, the state and industry participants.”

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We want to build a toll-road ecosystem that creates sustainable value for road users, the state and industry participants.