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AHRP Advises Indonesia Toll Road Association

A multidisciplinary team led by AHRP is advising the Indonesian Toll Road Association, known as ATI, which consists of all toll road concessionaires in Indonesia, with regards to the improvement of the existing Toll Road Concession Contract.

The necessary improvement in the concession contract is mainly due to the Government's plan to transform the toll collection system into a contactless cashless toll transaction system based on Multi-Lane Free Flow with Global Navigation Satellite System on all toll roads in Indonesia (MLFF System). Under the MLFF System, the toll road users are expected to benefit from reduced congestion and efficient toll collection. In addition, the MLFF System is intended to lead to operation cost savings for toll road concessionaires.

Concession contract improvement is also made to accommodate provisions on the right of way utilization and rest area business. Even though toll road businesses have been taking place for decades, the provisions on the right of way utilization and rest area business in the concession contract are deemed to require enhancement.

Providing legal assistance for this assignment is not always a smooth ride due to the involvement of a large number of stakeholders and concerns. Nonetheless, with the urge to give a better service to the community, all the involved parties were willing to go the extra mile, making constructive progress on this matter. In the interest of providing solutions and legal point of view to each stakeholder, AHRP has led the preparation for the white paper which consists of legal, commercial, and technical analysis, the project roadmap, as well as the providing best scheme to carry out the concession contract improvement.

While advising ATI on this project, there are a few key lessons worth noting, that despite public policy, all the rights and obligations stated in the concession contract can’t be ruled out. Moreover, as the return on toll road investment in Indonesia came from the toll tariff, so it is necessary to ensure that any modification on the project scope does not interfere with the revenue stream. Furthermore, provision on the risk allocation between the concessionaire and the Government in the concession contract is a necessity.

We are pleased to be part of this “big impact” assignment and witness the progress in improving Indonesia’s public infrastructure. From this point forward, we hope that the Government and the concessionaires will constantly synergize to provide other significant innovations to realize sustainable toll road infrastructure.


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