Solo - Kertosono Toll Road
Solo Kertosono Toll Road When commencing operation, Solo - Kertosono Toll Road, known as Soker Toll Road, will be the longest toll road in Indonesia. Soloâ€"Kertosono Toll Road is the 1st Public-Private Partnership project in Indonesia's infrastructure. The PPP scheme has been used because, for the investor to fully finance the project, its financial internal rate of return on capital is low, at only 12 per cent, and the capital payback period, seen from the perspective of toll road business, will be very long because it is hampered by the people’s ability to pay the toll fees. In terms of financing, the completion of Soker Toll Road requires project costs to the tune of almost Rp 11 trillion, or more precisely Rp 10.98 trillion. These costs cover the cost of land acquisition amounting to Rp 1.85 trillion, the cost of construction undertaken by the government amounting to Rp 3.55 trillion, and the cost of construction by the investors amounting to Rp 5.57 trillion. Soker T...