Ease of Negotiation for Toll Road Contractors and Operators

Summary

The Public Works and Public Housing Ministry's Toll Road Regulatory Agency (BPJT) will assist toll road operators and construction companies working for toll road operators. Head of BPJT Danang Parikesit said contractors and operators could easily renegotiate contracts and negotiate loans with banks if the toll road development project is stalled or the operated toll road does not reach the traffic target due to the Covid-19 pandemic.

This plan is in line with proposals from the Indonesian Contractors Association (AKI). The Chairman of AKI, Budi Harto, has asked the government to provide assistance if the project worked on by the contractor is hampered by the Covid-19 pandemic. He referred to the force majeure clause, which obliged the project owner to compensate the contractor if the project stopped temporarily.

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