Gudang Garam (GGRM) Builds Kediri-Tulungagung Toll Road, Investment Value Reaches IDR 9.92 Trillion

Rupiah (Photo: Antara)

JAKARTA - PT Gudang Garam Tbk (GGRM) will soon carry out the construction of the 44.17 kilometer (km) Kediri-Tulungagung Toll Road worth IDR 9.92 trillion.

Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono said the toll road construction was one of the government's cooperation projects with business entities (KPBU) on initiatives by business entities (unsolicited).

The project will begin construction in the near future after the GGRM officially signed the Toll Road Concession Agreement (PPJT), the Regres Agreement and the Kediri-Tulungagung Toll Road Guarantee Agreement, on Tuesday, February 27.

"Thank you to PT Gudang Garam Tbk for planning the construction of the Kediri-Tulungagung Toll Road. This is a very strategic business decision because it will connect the Trans Java Toll Road which has been operating with the Pansela (South Coast) Line," Minister Basuki said in a written statement, quoted Wednesday, February 28.

Basuki said the construction of the Kediri-Tulungagung Toll Road would have an impact on improving the economy of the surrounding community. Moreover, the Kediri-Tulungagung Toll Road is located in a potential agroindustry areas and marine resources.

In addition, it can accelerate logistics distribution so that it has a positive impact on industrial productivity and tourism.

In the construction of this toll road, the government through the Ministry of PUPR provides technical support related to the quality of toll road construction. Starting from design planning to development processes that will be monitored by the Directorate General of Highways.

Then, financially by the Directorate General of Infrastructure Financing and related to entrepreneurship which will be coordinated through the Toll Road Regulatory Agency (BPJT).

Later, the government will also provide support to mitigate the risk of building this toll road project through PT PII Kementerian Keuangan (Kemenkeu).

In more detail, the Head of BPJT of the Ministry of PUPR, Miftachul Munir, explained that the construction of the Kediri-Tulungagung Toll Road initiated by GGRM had an investment value of Rp9.92 trillion with a concession period of 50 years.

The Toll Road Business Entity (BUJT) which will manage the Kediri-Tulungagung Toll Road will later be PT Surya Sapta Agung Tol.

"The 44.17 km Kediri-Tulungagung toll road consists of access to Dhoho Airport in Kediri along 6.82 km and 37.35 km of road including access roads. This toll road has 2x2 and 4 intersections located in Bulawen, Kediri, Mojo and Tulungagung," he said.

The construction of the Kediri-Tulungagung Toll Road is planned to start construction in the second quarter of 2024. Thus, access to Dhoho Airport in Kediri is targeted to start operating in March 2025.

Furthermore, the construction process will continue with a road that will connect Kediri-Mojo-Tulungagung which will operate in the third quarter of 2025.