Jakarta. The Public Works Ministry signed a Rp12.35 trillion ($770 million) agreement on Friday with private and state-owned partners to develop the Bogor in West Java–Serpong in Banten via Parung Toll Road, a 32-kilometer link designed to strengthen Greater Jakarta’s transport network and spur regional growth.

The 40-year concession was awarded to Bogor Serpong Infra Selaras (BSIS), backed by Persada Utama Infra with a 52 percent stake, state-run Jasa Marga with 26 percent, Adhi Karya with 12 percent, and Hutama Karya Infrastruktur with 10 percent. The project will be financed entirely by the consortium without relying on the state budget.

The toll road, spanning 27.8 kilometers in West Java and 4.2 kilometers in Banten, will form part of the Jakarta Outer Ring Road (JORR) III, connecting to strategic routes including Serpong–Balaraja, Bogor Outer Ring Road, Depok–Antasari, and Sentul Selatan–Karawang Barat. Officials said the project is expected to accelerate logistics, reduce travel costs, and ease traffic congestion across the Jabodetabek metropolitan area.

“The investment carries a financial internal rate of return of 12.16 percent, which demonstrates the toll road’s appeal as a long-term infrastructure asset,” Public Works Minister Dody Hanggodo said after the signing. “This reflects growing investor confidence in Indonesia’s infrastructure policies.”

The government has pitched the project as a catalyst for regional development, projecting job creation, poverty reduction, and stronger local economies along the route. Dody added that better connectivity would improve supply chains in food distribution, clean water, and energy, while cutting logistics costs nationwide.