The Problem with Indonesia New Toll Road Tariff

24 February 2019

Transportation business complaint about the tariff in new toll road. Its too expensive and doesn't help to reduce the cost of distribution. Many believed to go back using the National road, although bit slow but less cost.

The euphoria was on the opening new toll road which connect between west to east java island, the biggest economy island in Indonesia. That new toll road would change the transportation more faster and cut the cost of distribution. In fact when the authority start to charge the toll road after several week of free trial, many business complaint it is too expensive.

If we look to the position of the toll road, the access line really strategies. The cost for the land believed very costly, mostly the land price in Java island are very high. That's why need big investment to build the road system in Java island. 

Many company failed to finish their contract to build the toll road, when just about to claim the access line. Land holder which usually already own by landlord had increase the price as much as they like to gain the profit. The government also facing this obstacle, since no regulation could enforce the land for national purpose.

Only in recent years the policy maker start to use the law to claim the land for national purpose. The land price already have climb and need big investment to open new toll road. Furthermore most loan also had high interest, giving another problem to have cheap tariff in new toll road.

Business and toll authority have to make step agreement so that can have win win solution on tariff. If less consumer using new toll road also will be difficult to return the investment. 
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