Improving toll road feasibility: Route

development and cost estimation

Cite as: AIP Conference Proceedings 1977, 040002 (2018); https://doi.org/10.1063/1.5042972
Published Online: 26 June 2018

Mohammed Ali Berawi, Perdana Miraj, Abdur Rohim Boy Berawi, Gunawan, and Kristy Mikaelse

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AIP Conference Proceedings 1977, 040002 (2018); https://doi.org/10.1063/1.5042972 1977, 040002

© 2018 Author(s).
 Improving Toll Road Feasibility: Route Development and
Cost Estimation
Mohammed Ali Berawi1, a), Perdana Miraj2, 3, b), Abdur Rohim Boy Berawi3,
Gunawan3 and Kristy Mikaelse3
1
Departement of Civil Engineering, Faculty of Engineering, Universitas Indonesia, Indonesia 16424
2
Departement of Civil Engineering, Faculty of Engineering, Universitas Pancasila, Indonesia 12640
3
Center for Sustainable Infrastructure Development (CSID), Faculty of Engineering, Universitas Indonesia,
Indonesia 16424
a)
Corresponding author: maberawi@eng.ui.ac.id
b)
perdanamiraj@gmail.com

Abstract. Infrastructure is a significant element in an effort to improve nation’s competitiveness at the global scale. As a
developing country, Indonesia currently attempts to improve the quality and expand the quantity of its infrastructure by
initiating mega project infrastructure, e.g. Trans–Sumatera Toll Road. The project located in the western part of
Indonesia, in Sumatera Island. It connects Lampung province to Aceh province for about 2,788 km. Although the project
will substantially increase the economic activities of people, the amount of investment is relatively huge. It requires
approximately 340 trillion rupiahs or equal to US$ 24.29 billion only for the construction. Thus, route planning in the
initial stage shall be comprehensively investigated to produce higher benefits over cost. The purpose of this research is to
develop alternative route planning for Trans–Sumatera Toll Road by taking into account the southern part of Sumatera as
the case study. Quantitative and qualitative approaches were to achieve project objectives through in-depth interview and
financial analysis. This findings show that the southern part of Sumatera has potential contribution to the regional
economic activities and national growth. The result also generates potential featured sectors for each province such as
mining and quarrying, agriculture, fishery, and so on. Initial cost for the alternative route in the southern part of Sumatera
is estimated about 120.85 trillion rupiahs or equal to US$ 8.95 billion.

INTRODUCTION
As a developing country, Indonesia continuously attempts to improve its competitiveness level by increasing
economic activities. One of the efforts is through the development of infrastructure sector. Some studies have
confirmed the significant impacts of infrastructure [1, 2], and established the basis of a country's competitiveness.
The Indonesian government is targeting continuous economic growth in next five years through massive
infrastructure development programs to attain economic development [3].
Trans-Sumatera Toll Road (TSTR) is one of mega–infrastructure projects expected to increase the local
connectivity and prolong regional economic activities for the nation [4]. The project is carried out in the western part
of Indonesia, precisely in Sumatera Island. It connects eight provinces for about 2,788 km, seven national priority
districts, and other potentials area. Such a development is argued as the solution to accelerate distribution of people
and goods to the processing site in Java Island, to increase regional economic growth, to provide job opportunity and
to facilitate an extensive new urban development [5].
Even though the project will substantially increase the economic activities of people, the amount of investment is
relatively huge. It requires approximately 340 trillion rupiahs or equal to US$ 24.29 billion only for the construction.
Therefore, route planning in the initial stage becomes a crucial measure to produce higher benefits over cost. This
research is planned to develop alternative route planning for Trans–Sumatera Toll Road by taking into account the
southern part of Sumatera as the case study. It will connect three provinces, namely Lampung, South Sumatera and

Human-Dedicated Sustainable Product and Process Design: Materials, Resources, and Energy
AIP Conf. Proc. 1977, 040002-1–040002-5; https://doi.org/10.1063/1.5042972
Published by AIP Publishing. 978-0-7354-1687-1/$30.00

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Bengkulu. Previous report stated that the existing route generated from the government would stretch for about
1,007 km. The findings recommend not only alternative route selection for decision makers, but also additional
functions which may increase the project feasibility from private investors’ perspective. The result also can be used
for related stakeholders to accommodate the project into realization.

METHODOLOGY
The research purpose is delivered through three steps of research workflow. Firstly, the concept of the route will
be determined. It combines a study literature from available secondary data, identification of regional gross domestic
product (GRDP) from Statistics Indonesia, and then orderly rank each province from their respective value of GRDP
and population. Secondly, the financial analysis will be commenced to produce an initial cost of the project [6, 7]. A
benchmarking from similar toll road project in Indonesia and unit price analysis will be involved to support the
analysis. Any additional functions and its cost will also be evaluated to provide more benefits over cost for the
project.
Thirdly, potential sectors from cities and regencies along the designated route will be assessed using location
quotient (LQ) method. It compares the gross regional domestic product (GRDP) of particular sectors/productions in
a region to the GRDP of the overall sectors in the area to show the potential of each field [8]. The value ranges from
zero to the infinite value. When the score is below one, it means the commodity sector in that region has no similar
industrial cluster. Furthermore, LQ = 1 indicates no distinguish featured from one region to the others, LQ > 1
shows the investigated sector have related industry [9]. Subsequently, an initial cost is also examined to identify the
project cost for realization. An in-depth interview with three key source persons in the infrastructure sector in
Indonesia is also conducted to study the result of this study and as the validation for the research output [10, 11].

RESULTS AND DATA ANALYSIS

Route Selection 085725076136

Out of fifteen cities/regencies in Lampung province, four of them have the highest contribution to the gross
regional domestic product (GRDP), namely Bandar Lampung city, South Lampung regency, West Lampung
regency, and North Lampung regency. Furthermore, those with the highest population includes Central Lampung
regency, Bandar Lampung, South Lampung regency and South Lampung Regency. In overall, the route shall
connect South Lampung Regency–Bandar Lampung city–East Lampung regency–North Lampung regency. The
total length of route is estimated about 231.7 km.
Route development in South Sumatera province evaluates 17 cities/regencies using the GRDP and population.
Based on GRDP, Palembang city, Musi Banyuasin regency, Muara Enim regency and Banyuasin regency are the top
four highest cities/regencies in South Sumatera province. Meanwhile, based on the population, Palembang city,
Musi Banyuasin regency and Ogam Komering Ilir are the highest among all other districts. Principally, the route
shall connect Ogan Komering Ilir regency from Lampung province border, then Palembang city, Musi Banyuasin
regency and Banyuasin regency. Although Musi Rawas regency is excluded from the highest contributor in terms of
GRDP and population, this regency plays a significant role as a connector to Bengkulu province. The route
accommodates intermodal transportation by connecting Sultan Mahmud Badaruddin II airport and use Musi river
near Palembang city to act as a central port station. The total length of the proposed route is about 489 km.
Essentially, it is expected the construction of the project will boost the economic development of this area.
Furthermore, despite Bengkulu province has a lower contribution compared with other two provinces in the
southern part of Sumatera in terms of GRDP and population, it has the highest value for both variables compared
with the best ten cities/regencies in South Sumatera province and the best seven cities/regencies in Lampung
province. Moreover, despite the limitation of the GRDP and population, Bengkulu has many potentials to be
developed considering its natural resources. Therefore, the route on this province will connect Rejanglebong
regency, Kepahiyang regency, and Bengkulu city. The route also links Fatmawati Soekarno Airport and Pulau Baai
Port, both are located in Bengkulu City. The total estimated length of this route is about 92 km.
In total, the proposed route of the project stretches over 839.31 km on the southern part of Sumatera. This
calculation is 17% lower than the government estimation, approximately 1,007 km, which connects three provinces.
The detailed comparison of the proposed route and state route is shown in Fig. 1.

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 FIGURE 1. Comparison of Proposed Route and Government Route.

TABLE 1. Resume of Initial Cost of Southern Part of Sumatera Route.

Estimated Cost
No Functions
(In billion rupiah)
1 Lampung Province
a Toll Road + Airport integration 35,499.47
b Motorbikes integration 219.03
c Rest area 389.70
2 South Sumatera Province
a Toll Road + Airport integration 41,601.50
b Dry-port 2.60
c Rest area 452.40
3 Bengkulu Province
a Toll Road + Airport integration 42.55
b Rest area 141.78
TOTAL 120,852.23

This study also anticipated multimodal integration with three airports from Radin Inten II in Lampung province,
Sultan Mahmud Badaruddin II in South Sumatera Province and Fatmawati Soekarno Airport in Bengkulu province.
The topography is relatively flat and requires additional length for about 23.3 km, 4.52 km, and 6.89 km,
respectively. Moreover, motorbikes toll road integrates Bakauheni port to Bandar Lampung City at Lampung
province, which stretches over 79.11 km with a total width about 7 meters. Last, dry-port and rest area will use a
benchmarking approach from dry-port in Europe and rest area in Java Island, Indonesia. The total initial cost of the
proposed concept that considers additional function such as dry-port, multi-modal integration and service area is
about 123 trillion rupiah. This budget shows lower cost, approximately 19.59%), compared to the government
calculation of 149 trillion rupiahs. Resume of initial cost can be seen on Table 1.

Location Quotient

Location quotient (LQ) is used to identify the basic commodity or sectors that have similar potential with other
areas in a region. LQ value over one [1] means the sector needs to be supported to generate more benefits to the
local province. Nine economic sectors were investigated from agriculture; mining and quarrying; processing
industry; electricity, gas, and water; building; trading, hotel, and restaurants; transport and communication; finance
and retail; and services.
In Lampung province, Bandar Lampung city has most economic sectors exclude agriculture and mining and
quarrying. Followed by Lampung Selatan regency and Lampung Utara regency with five featured economic sectors,

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while Way Kanan regency has four featured sectors and Lampung Timur regency has three featured sectors. Other
regencies have more diverse featured sectors based on the location and natural resources.
In South Sumatera province, both Ogan Ilir regency and Palembang city has six featured sectors. Meanwhile, the
others only have one to five featured sectors. Buildings and trading, hotel & restaurant are the two highest economic
contributors for the province with five cities/regencies depends on these sectors. The four towns/regencies relying
their business on agriculture are Ogan Komering Ilir, Musi Rawas, Banyuasin and Ogan Ilir. In Bengkulu province,
Bengkulu city has trading, hotel and restaurant; and services as featured sectors. Furthermore, Rejang Lembong
regency and Kepahiyang regency depend on agriculture for their main economic activity.

DISCUSSION
The route proposed based on this study and the one devised by the government have similar starting point, which
is at Bakauheni port in Lampung province. However, the proposed route initiates a motorbike toll road that is
integrated on the project. Motorbike is commonly used by most people in this country to travel from one area to
others. The population of this kind of vehicle has a huge gap with private cars. Currently, there are 3,811,026 units
of motorbikes in the three provinces or sixteen-fold higher than private vehicles population at 235,802 units.
Moreover, Lampung contributes 64.85% from the total population of motorbikes in the Southern part of Sumatera
region. With this huge potential, integrating motorbike toll road into the concept will attract more revenues to the
project.
In contrast with Lampung province, South Sumatera province has many broad rivers which potentially use for
transporting goods and materials in particular. This potential is then supported by the existing Tanjung Siapi–api
port. However, the connectivity and mobility to this area is relatively limited. Thus, a dry-port concept is proposed
to provide seamless transportation network between road transport and inland transport. It may also reduce the use
of fuel from loaded trucks by transferring their goods to the designated destination. Furthermore, TSTR on
Bengkulu province connects Fatmawati Soekarno airport. This connectivity may not increase the revenue in the
short term for the province. However, on urban development perspective, the integration will attract residential and
business opportunity around the area, thus economic activity is expected to run exponentially in later years.
Compared to other provinces on the case study, Bengkulu has a low contribution in term of GRDP and
population for the project feasibility. The cities and regencies in the Southern part of Sumatera generally have many
featured sectors, while Bengkulu city only has two featured sectors from trading, hotel and restaurant; and services.
The other two regencies only have one featured sector. To improve the local competitiveness, the provincial
government of Bengkulu intends to discuss this issue with the Central government and Investment Coordinating
Board of the Republic of Indonesia to formulate better strategies for attracting investment to the area. Deregulation
and political stability also become the issues that shall be improved to acquire private investment.

CONCLUSION
Toll road development requires appropriate planning particularly related to the route selection. It contributes in
producing maximum demand and connecting potential cities/regencies of an area to the processing industry. The
construction of toll road project will boost the local economic activities and provides benefits over cost for people.
The study generated an alternative route in the Southern part of Sumatera that considers several components such as
Gross Regional Domestic Product (GRDP) and population.
The proposed route covers Lampung Selatan Regency–Bandar Lampung city–Lampung Timur regency—
Lampung Utara regency, then connects to South Sumatera province from Ogan Komering Ulu Regency–Ogan
Komering Ilir Regency–Palembang city–Banyuasin regency–Musi Banyuasin regency–Musi Rawas regency. Last,
Bengkulu province will connect Kepahiyang regency–Bengkulu Utara regency–Bengkulu city. Initial cost for the
project requires 120.85 trillion rupiahs. This budget shows lower cost (approximately 19.59%) compared to the
government calculation at 149 trillion rupiahs. Furthermore, the featured sectors in the Southern part of Sumatera
region include agriculture, trading, mining and quarrying and tourism sector.

ACKNOWLEDGMENTS

This research is fully supported by the grants from Ministry of Research and Higher Education, Republic of
Indonesia and Universitas Indonesia.

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