The administration of President Joko Widodo is accelerating the construction of toll roads in and outside Java. The toll roads are constructed as part of the bid to make areas more interconnected. By opening up isolated areas, the government expects to give a boost to national and regional economy.
The Public Works and Public Housing Ministry said that from 2015 to 2017, only 12,783 kilometers of national roads have been constructed. This year, the government will construct 811 kilometers of new national roads.
Nine Trans Jawa toll road segments are slated to be inaugurated until the end of 2018. The toll roads will enter service one by one from July to December. The nine segments, some have been inaugurated while some others are still pending, are Pejagan-Pemalang, Solo-Sragen, Sragen-Ngawi, Porong-Gempol, Salatiga-Kartosuro, Pemalang-Batang, Batang-Semarang, Wilangan-Kertosono, and Pasuruan-Grati-Probolinggo. Meanwhile, the 1,150-km Merak-Banyuwangi toll road will be fully connected by the end of 2019.
The president said that the government has planned the construction of 667 kilometers of new national roads and 905 kilometers of toll roads in 219. He said his administration would continue doing breakthroughs to accelerate national infrastructure construction through non-national budget financing schemes, which is involving the private sector. The government allocates Rp420 trillion for infrastructure budget in 2019.
"The construction of these infrastructures strengthens connectivity, connects various economic potentials in Indonesia, brings different regions to development equity, igniting new economic activities, and increasing distribution of goods and services," the president said to Detik.com, Thursday (August 16).
When all those things happen, one of the business lines that will be positively impacted and will find the roads useful is trusted vehicle rental service. This business is predicted to grow up to 70% in 2018, as the construction of roads and toll roads in Java is completed.
As quoted from Bisnis.com, Sunday (February 25), Association of Regional Car Rentals (Asperda) Chairman Harmawan Jeffrivan said two things increase the demand for rented vehicles. First, companies nowadays choose to rent vehicles as an efficiency bid.
According to Harmawan, by renting vehicles, a company does not need to pay taxes and spend money on maintenance. Second, the completion of most toll roads that are under construction in Java.
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