Policy development of road plus property developer on toll road with SOE assignment schemesn

Abstract

The Trans Sumatra Toll Road (TSTR) is a mega toll road project with an assignment State-Owned Enterprise (SOE) scheme in Indonesia. In its development, TSTR has several limitations, including funding, low investment feasibility and the un-optimum implementation of land value capture (LVC). This has the impact of delaying the completion of project development, decreasing the performance of toll road developer companies and even causing bankruptcy. LVC is an alternative funding scheme proven successful in other countries such as Hongkong, England and Vietnam. Several transportation projects based on transit-oriented development have successfully achieved profits using the LVC method. With a low project feasibility, the implementation of the Road Plus Property Developer (RPPD) business model is expected to be a solution to improve investment performance in the TSTR project. RPPD is defined as an assignment scheme toll road business model based on LVC implementation. This research aims to develop policies for implementing the RPPD business model on toll road SOEassigned schemes. The data was collected by in-depth interviews with experts in two stages. The data analysis method used is Soft System Methodology (SSM). This research produces two recommended actions: ratification of the Presidential Regulation regarding the implementation of LVC and institutional transformation of regionally owned business entities in the property sector. It is hoped that implementing the RPPD policy will become a priority incompleting the TSTR project.