Hutama Karya-HKI Consortium Wins Trans Papua Road Auction

From INFRASTRUCTURE PROJECTS, JAKARTA - As the first quarter of 2024 comes to a close, the consortium of PT Hutama Karya (Persero) (Hutama Karya) and PT Hutama Karya Infrastruktur (HKI) has been announced as the winner of the auction for the construction of the Trans Papua Road, Jayapura-Wamena segment Mamberamo-Elelim in the Papua Highlands Province. The project, overseen by the Ministry of Public Works and Public Housing (PUPR), will be developed under the Government and Business Entity Cooperation (KPBU) scheme.

Adjib Al-Hakim, Executive Vice President (EVP) and Corporate Secretary of Hutama Karya stated that the project had been under consideration since the market search for the KPBU Trans Papua project on September 6, 2022. The investment or Capital Expenditure (CAPEX) for the project is estimated at Rp 3.3 trillion, with an Availability Payment return scheme.

"The project will have a concession period of 15 years, consisting of 2 years of construction and 13 years of maintenance," said Adjib in his release on Thursday (18/4).

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In this project, the Hutama Karya consortium, with a 55% share, and HKI, with a 45% share, will undertake planning and development of technical and conceptual designs, construction to project completion, project financing, project operation after completion, maintenance activities during the operational period, and return of ownership or project management to the government after 15 years.

The KPBU Trans Papua project is a major logistics transportation route from Jayapura to Wamena, spanning 50.14 km. The scope of work to be carried out includes road handling, bridges, slope and cliff repairs, and the construction of weighing facilities.

In the next phase, the HK and HKI consortium will establish a joint venture that will act as the Implementing Business Entity (BUP) of the KPBU Trans Papua project during the concession period, starting with the signing of the KPBU agreement with the Ministry of PUPR as the Project Cooperation Responsible Party (PJPK).

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Adjib further explained that the KPBU Trans Papua project will boost economic growth, improve accessibility and connectivity, and expand the road network, which will potentially increase the welfare of the people in Papua.

"This project will be a major step in infrastructure development in Papua and is expected to have a significant impact in the region," Adjib concluded.

It should be noted that in addition to Trans Papua, Hutama Karya is currently working on several projects under the KPBU scheme, including the commercial development of existing port facilities at the Anggrek Gorontalo Port owned by the Ministry of Transportation, and the development project of the Proving Ground Road Testing and Motor Vehicle Certification (BPLJSKB) Bekasi, in West Java, in collaboration with PT Indonesia International Automotive Proving Ground (IIAPG).