The project, which is part of the government-business entity cooperation (KPBU) initiated by the private sector, is scheduled to begin shortly after GGRM officially signs the Toll Road Concession Agreement (PPJT), Regress Agreement, and the Kediri-Tulungagung Toll Road Guarantee Agreement on Tuesday, February 27, 2024

"Thanks to PT Gudang Garam for planning the construction of the Kediri-Tulungagung toll road. This is a highly strategic business decision as it will connect the operational Trans Java Toll road with the Southern Java Coastal Road route," Minister of Public Works and People's Housing, Basuki Hadimuljono said after the signing of the agreements on Tuesday.

Basuki added that the construction of the Kediri-Tulungagung toll road will have a positive impact on the local economy, especially considering its location in a potential agro-industrial and marine resource area. Furthermore, it will accelerate logistics distribution, thus positively affecting industrial productivity and tourism.

In the construction of this toll road, the government, through the Ministry of Public Works and Housing, provides technical support related to toll road construction quality. This support ranges from design planning to construction processes, which will be monitored by the Directorate General of Highways. Financial support is also provided by the Directorate General of Infrastructure Financing and coordination regarding concession that will be facilitated through the Toll Road Regulatory Agency (BPJT).

Moreover, the government also supports mitigating the risks of this toll road project through PT PII, Ministry of Finance. In more detail, Head of BPJT at the Ministry of Public Works and Housing, Miftachul Munir, explained that the construction of the toll road has an investment value of Rp9.92 trillion with a concession period of 50 years. The toll road operator for the Kediri-Tulungagung Toll Road will be PT Surya Sapta Agung Tol.

"The 44.17 km Kediri-Tulungagung Toll Road consists of 6.82 km connecting to Dhoho Airport in Kediri and a main road of 37.35 km including access roads. This toll road has 2x2 lanes and 4 interchanges located in Bulawen, Kediri, Mojo, and Tulungagung," Munir explained.

The construction of the toll road is scheduled to begin in Quarter II/2024, with the Dhoho Airport access in Kediri targeted to start operating in March 2025. Subsequently, the construction process will continue with the main road connecting Kediri - Mojo - Tulungagung, which is expected to be operational in the third quarter of 2025.