Secretary General of the Ministry of Public Works (PU), Mohammad Zainal Fatah, representing Minister of Public Works Dody Hanggodo, witnessed the signing of the Public-Private Partnership (PPP) Agreement for the Flyover Panorama I (Sitinjau Lauik I) construction project in West Sumatra Province on Friday, March 21, 2025, at the Ministry of Public Works Auditorium.

Director General of Infrastructure Financing for Public Works, Rachman Arief Dienaputra, stated that this PPP project aims to enhance traffic safety and convenience at the Panorama I (Sitinjau Lauik I) curve, a known high-risk accident area.

"Based on hazard identification and risk assessment, the Panorama I curve is classified as a high-risk accident area due to its sharp geometric turn. Therefore, a solution is required through geometric modifications by constructing a new road that meets technical, safety, and traffic comfort standards," said Director General Rachman Arief.

The Sitinjau Lauik I Flyover project is located on a national road connecting Padang and Solok, serving as a crucial logistics route for West Sumatra Province. "This project falls under economic infrastructure and does not generate revenue from infrastructure users since it is part of a toll-free national road," added Director General Rachman Arief.

With an investment value of IDR 2.793 trillion, the project will be implemented using the Availability Payment (AP) investment return scheme, with a cooperation period of 12.5 years—comprising 2.5 years of construction and 10 years of service operations. "The government will make annual payments of IDR 638.4 billion (including VAT) during the service period," explained Director General Rachman Arief.

The project is initiated by the consortium of PT Hutama Karya (Persero) and PT Hutama Karya Infrastruktur, which was awarded the contract in October 2024. The tender process began in March 2024 and concluded in October 2024.

“The project scope includes the construction of a 2.774 km road and bridge, maintenance of existing roads, provision of a Weigh-in-Motion (WIM) system, and preservation of roads and bridges during the service period. This PPP project adopts the Design – Build – Finance – Operate – Maintenance – Transfer (DBFOM) model, integrating multiple project elements into a single performance-based contract,” added Director General Rachman Arief.

The agreement signing involved various key stakeholders, including the Ministry of Finance, the Ministry of National Development Planning (PPN/Bappenas), the Ministry of Forestry, the Ministry of Environment, and PT Indonesia Infrastructure Guarantee Fund (Persero) (PT PII).

Sudarto, Expert Staff for State Expenditure at the Ministry of Finance, commended the Ministry of Public Works for its commitment to expanding infrastructure financing beyond the State Budget (APBN). He emphasized that this PPP project exemplifies strong synergy in delivering efficient and effective infrastructure solutions.

"We highly appreciate the Ministry of Public Works for its initiative in infrastructure financing modalities. We hope the Ministry will continue prioritizing public funding and applying these experiences to other infrastructure projects. The Ministry of Finance remains committed to supporting and assisting in this financing scheme," said Sudarto.

At the same event, PT PII President Director M. Wahid Sutopo stated that, as a Special Mission Vehicle (SMV) of the Ministry of Finance, PT PII is committed to providing guarantees for the Flyover Panorama I Sitinjau Lauik project. The guarantee aims to offer certainty and assurance to investors participating in the project.

"PT PII remains committed to promoting innovative financing schemes, including our role in providing guarantees for this project. This initiative marks a significant step in advancing infrastructure development in West Sumatra to enhance connectivity, potentially boosting regional economic growth through the Flyover Panorama I Sitinjau Lauik," explained Sutopo.

The signing ceremony was attended by Inspector General of the Ministry of Public Works Dadang Rukmana, Director General of Highways at the Ministry of Public Works Roy Rizali Anwar, Deputy Governor of West Sumatra Vasco Ruseimy, PT PII President Director Muhammad Wahid Sutopo, PT Hutama Karya (Persero) President Director Budi Harto, PT Hutama Karya Infrastruktur President Director Aji Prasetyanti, and PT Hutama Panorama Sitinjau Lauik Director Michael Arthur Paulus.

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