Jakarta. Indonesia has signed an agreement to build and operate a 32-kilometer toll road connecting Bogor in West Java and Serpong in Banten -- a key link in the Greater Jakarta toll network -- with no funding from the state budget.

Public Works Minister Dody Hanggodo confirmed on Monday that the project, valued at Rp 12.35 trillion ($744 million), will be financed entirely through a public-private consortium under a 40-year concession period.

“The entire construction cost will be borne by the private sector, without burdening the state budget. This reflects growing investor confidence in the government’s policy direction,” Dody said in Jakarta.

The project will be carried out by Bogor Serpong Infra Selaras (BSIS), a consortium consisting of Persada Utama Infra as the majority shareholder (52 percent) and three state-owned construction firms: Jasa Marga (26 percent), Adhi Karya (12 percent), and Hutama Karya Infrastruktur (10 percent).

The new toll road will become an integral part of the Jakarta Outer Ring Road (JORR) III network. It will interconnect with several major routes, including the Serpong–Balaraja, Bogor Outer Ring Road (BORR), Depok–Antasari, and South Sentul–West Karawang tollways.

According to a feasibility assessment, the project’s financial internal rate of return (FIRR) is projected at 12.16 percent, underscoring its attractiveness as a long-term infrastructure investment.

The Bogor–Serpong toll road is expected to improve connectivity between southern and western Greater Jakarta, easing congestion on existing corridors while enhancing access to new residential and industrial zones in Parung and Gunung Sindur.

“This partnership model demonstrates how infrastructure growth can continue sustainably through private-sector participation,” Dody added.