PP 23/2024: Indonesia's Comprehensive Toll Road Regulatory Framework Replaces PP 15/2005
Peraturan Pemerintah Nomor 23 Tahun 2024 tentang Jalan Tol ("PP 23/2024") represents a fundamental overhaul of Indonesia's toll road regulatory framework. Enacted on April 1, 2024, this 64-article regulation replaces PP 15/2005 (as last amended by PP 17/2021) and implements the toll road provisions of UU 6/2023 (Cipta Kerja/Omnibus Law).
PP 23/2024 is published in Lembaran Negara Republik Indonesia Tahun 2024 Nomor 85, Tambahan Lembaran Negara Nomor 6919, and comprises 10 chapters covering regulation, development, business operations, and supervision of toll roads.
Legal Basis and Regulatory Evolution
Pasal 63 PP 23/2024 explicitly revokes the entire PP 15/2005 framework:
"Pada saat Peraturan Pemerintah ini mulai berlaku, Peraturan Pemerintah Nomor 15 Tahun 2005 tentang Jalan Tol sebagaimana telah beberapa kali diubah terakhir dengan Peraturan Pemerintah Nomor 17 Tahun 2021 tentang Perubahan Keempat atas Peraturan Pemerintah Nomor 15 Tahun 2005 tentang Jalan Tol, dicabut dan dinyatakan tidak berlaku."
This revocation terminates:
- PP 15/2005 (original toll road regulation)
- PP 44/2009 (first amendment)
- PP 43/2013 (second amendment)
- PP 30/2017 (third amendment)
- PP 17/2021 (fourth amendment)
The regulation implements Article 35H, 43(5), 45(7), 48(8), 49(2), 50(16), 51(4), 51A(7), 51B(2), 52(5), 52A(2), 55(5), 56A(3), 57(4), and 61 of UU 38/2004 on Roads as last amended by UU 6/2023. This makes PP 23/2024 the primary implementing regulation for the omnibus law's toll road provisions.
Scope and Purpose of Toll Road Operations
Pasal 1 defines toll roads within Indonesia's road network hierarchy:
"Jalan Tol adalah Jalan Umum yang merupakan bagian sistem jaringan jalan dan sebagai jalan nasional yang penggunanya diwajibkan membayar Tol."
Despite being user-funded infrastructure, toll roads remain classified as "Jalan Umum" (public roads) and "jalan nasional" (national roads), emphasizing their public service function rather than purely commercial nature.
Pasal 2 articulates the equitable development objective:
"Penyelenggaraan Jalan Tol dimaksudkan untuk mewujudkan pemerataan pembangunan dan hasilnya serta keseimbangan dalam pengembangan wilayah dengan memperhatikan keadilan yang dapat dicapai dengan membina jaringan Jalan Tol."
This "equitable development" principle mandates that toll road networks serve regional balance and justice, not merely traffic demand or profitability. Toll roads must connect underserved regions, not just high-traffic corridors.
Pasal 3 establishes four pillars of toll road governance:
- Pengaturan Jalan Tol (regulation): Policy formulation, planning, and legal framework
- Pembinaan Jalan Tol (development): Technical standards, guidance, and capacity building
- Pengusahaan Jalan Tol (business operations): Concession management, tariffs, business entities
- Pengawasan Jalan Tol (supervision): Monitoring, evaluation, enforcement
Badan Pengatur Jalan Tol (BPJT): Institutional Framework
Pasal 26 mandates establishment of the Toll Road Regulatory Agency:
"Dalam rangka penyelenggaraan Jalan Tol, Pemerintah Pusat membentuk Badan Pengatur Jalan Tol yang selanjutnya disingkat BPJT."
BPJT functions as an independent regulator responsible for toll road planning, concession agreements, tariff approval, and performance monitoring. The agency's authority includes:
- Preparing national toll road master plans
- Conducting pre-feasibility and feasibility studies
- Procuring business entities through transparent processes
- Setting and adjusting toll tariffs
- Monitoring service quality standards
- Enforcing concession agreement compliance
BPJT's institutional design separates regulatory functions from operational/business responsibilities, preventing conflicts of interest between toll road promotion and oversight.
Business Entity Requirements and Concession Framework
Pasal 31-35 specify eligibility criteria for toll road operators. Business entities must be:
- Indonesian legal entities (badan hukum Indonesia)
- State-owned enterprises (BUMN) or special purpose vehicles for specific projects
- Companies with minimum capital requirements (specified in ministerial regulations)
- Entities with proven technical, financial, and managerial capacity
Concession agreements (Perjanjian Pengusahaan Jalan Tol/PPJT) under Pasal 37-40 must stipulate:
- Concession period (typically 30-50 years)
- Investment commitments and construction timelines
- Toll tariff formulas and adjustment mechanisms
- Service quality standards and penalties
- Government support arrangements
- Transfer of assets upon concession expiry
The regulation introduces flexible concession models including Build-Operate-Transfer (BOT), availability payment schemes, and hybrid public-private partnerships (PPPs) to accommodate varying project viability.
Government Support Mechanisms
Chapter V (Pasal 41-44) strengthens government support (Dukungan Pemerintah Pusat/DGP) for financially unviable but strategically important toll roads. Support mechanisms include:
- Construction grants: Direct funding for uneconomical segments
- Availability payments: Revenue guarantees based on road availability, not traffic volume
- Viability gap funding: Bridging financing gaps to attract private investors
- Land acquisition: Government-funded land procurement
- Tax incentives: VAT exemptions, import duty waivers for equipment
These provisions address Indonesia's historical challenge where many priority toll roads lack commercial viability due to low traffic demand in outer islands or remote regions. Government support enables equitable infrastructure development aligned with Pasal 2's principles.
Toll Tariff Regulation and User Rights
Pasal 48-53 balances business entity revenue requirements with user affordability. Toll tariffs must:
- Reflect construction, operation, and maintenance costs
- Ensure reasonable investor returns (specified IRR targets)
- Consider user ability to pay (willingness-to-pay surveys)
- Adjust periodically based on inflation and operational performance
Users' rights (Pasal 54-56) include:
- Safe and comfortable toll road facilities
- Clear signage and emergency services
- Timely information on closures or construction
- Complaint mechanisms and service recovery
Users' obligations require payment of prescribed tolls, compliance with traffic regulations, and proper use of toll collection systems (electronic or manual).
Supervision and Administrative Sanctions
Chapter VIII (Pasal 59-61) establishes robust oversight mechanisms. BPJT and the Ministry of Public Works and Housing conduct:
- Annual performance evaluations against service standards
- Financial audits of toll revenue utilization
- Technical inspections of infrastructure condition
- Traffic safety and environmental compliance reviews
Administrative sanctions for violations include:
- Written warnings for minor breaches
- Temporary suspension of operations for safety hazards
- Fines for service quality failures
- Concession termination for material defaults
Transitional Provisions
Pasal 62 addresses existing concessions under PP 15/2005:
"Perjanjian Pengusahaan Jalan Tol yang telah ditandatangani sebelum Peraturan Pemerintah ini berlaku, tetap berlaku sampai berakhirnya jangka waktu Perjanjian Pengusahaan Jalan Tol."
Existing concession agreements remain valid until expiry, but amendments must conform to PP 23/2024. This "grandfathering" provision prevents disruption of ongoing toll road projects while ensuring future compliance with new standards.
Implications for Indonesia's Toll Road Development
PP 23/2024 creates several transformative impacts:
First, regulatory consolidation. By revoking PP 15/2005 and all amendments, the regulation eliminates legal fragmentation from 20 years of incremental reforms. A single, coherent framework enhances legal certainty for investors.
Second, omnibus law alignment. Full integration with UU 6/2023 streamlines permitting, accelerates project approvals, and reduces bureaucratic barriers that previously delayed toll road development by years.
Third, enhanced government support. Expanded DGP mechanisms enable financing of strategic but commercially unviable toll roads, particularly in Kalimantan, Sulawesi, Papua, and Maluku where traffic volumes cannot sustain private investment.
Fourth, institutional strengthening. BPJT's reinforced regulatory authority improves transparency, tariff rationality, and concession management, addressing past criticisms of opaque decision-making.
Fifth, sustainable development integration. PP 23/2024 mandates environmental assessments, climate resilience standards, and social safeguards, aligning toll road development with Indonesia's NDC commitments and SDGs.
Conclusion
PP 23/2024 marks a milestone in Indonesia's infrastructure governance by replacing a patchwork regulatory framework with a comprehensive, modern toll road regime. The regulation balances private sector participation with public interest protection, financial viability with equitable development, and regulatory efficiency with accountability.
Implementation success depends on: (1) BPJT's capacity to execute complex regulatory functions; (2) consistent government support funding in annual budgets; (3) transparent procurement attracting quality investors; and (4) coordinated enforcement across ministries and regional governments.
With over 6,000 km of toll roads planned by 2030 and an estimated investment requirement of IDR 1,500 trillion, PP 23/2024 provides the legal foundation for Indonesia's ambitious infrastructure modernization program under President Prabowo Subianto's administration.
Sumber Hukum: PP 23/2024 di BPK
Peraturan Terkait: UU 38/2004, UU 6/2023, PP 15/2005 (revoked)
Sektor: Toll Roads, Infrastructure, Public Works
Status Regulasi: Aktif
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