Hutama Karya Consortium Working On Trans Papua Road Worth IDR 3.3 Trillion, Target Completed For Two Years

JAKARTA - PT Hutama Karya (Persero) was appointed as the winner of the auction for the construction of the Trans Papua Road for the Jayapura-Wamena segment of the Mamberamo-Elelim segment in the Papua Mountains Province worth IDR 3.3 trillion by the Ministry of Public Works and Public Housing (PUPR).

The Trans Papua Mamberamo-Elelim Road project was worked on by the consortium PT Hutama Karya (Persero) and PT Hutama Karya Infrastruktur (HKI) through a government and business entity cooperation scheme (KPBU).

Executive Vice President (EVP) Corporate Secretary Hutama Karya Adjib Al Hakim said this project had previously been studied since the market search for the Trans Papua KPBU project on September 6, 2022, with an investment value or Capital Expenditure (CAPEX) reaching IDR 3.3 trillion and a return scheme that will be used in the form of availability payment.

"This project will have a concession period of 15 years consisting of 2 years of construction period and 13 years of maintenance period," said Adjib quoted from Hutama Karya's official website, Monday, April 22.

In this project, the Hutama Karya consortium with a portion of 55 percent and 45 percent of HKI will work on planning and developing technical and conceptual designs (designs), construction to project completion (building).

In addition, the HK-led consortium will also prepare project financing sources (finance), operate projects after completion of construction (operation), maintenance, maintenance and repair activities during the operational period (maintenance) to return ownership or project management to the government after 15 years (transfer).

The Trans Papua KPBU project is the main logistics transportation route from Jayapura to Wamena with a length of 50.14 kilometers (km). The scope of work that will be carried out includes handling roads, bridges, repairing slopes and cliffs as well as building weighing facilities.

In the next stage, the HK and HK consortium will form a joint company that acts as the Implementing Business Entity (BUP) for the Trans Papua KPBU project during the concession period which begins with signing a KPBU agreement with the Ministry of PUPR as the Person in Charge of Cooperation Projects (PJPK).

Adjib assessed that the existence of the Trans Papua KPBU project would increase economic growth, improve accessibility and connectivity and expand road networks that would potentially improve the welfare of the people in Papua.

"This project will be a major step in efforts to develop infrastructure in Papua and is expected to have a significant impact on the region," he said.

In addition to Trans Papua, Hutama Karya is currently working on several projects with the KPBU scheme, including the development of existing port facilities commercially at the Port of the Gorontalo Orchid owned by the Ministry of Transportation (Kemenhub) as well as the Proving Ground development project for Roadworthiness Testing and Motor Vehicle Certification (BPLJSKB) Bekasi in West Java with PT Indonesia International Automotive Proving Ground (IIAPG).