Batang Regency Government offered to develop 157 hectares of land with a toll road-based transit-oriented development (TOD) concept. The area is located on KM 360 of Semarang-Batang toll road. The development process is set to start next year.

Batang Regent Wihaji said that his agency was planning to develop a TOD area that was 157 hectares in 2020. There are currently around 4 to 5 companies interested in constructing the integrated area.

The land for TOD belongs to PTPN IX, so the status should be clear. The signing process between Batang Regency Government and PTPN IX has been conducted.

“The next process is acquiring the licence from the toll road operator, which is the Public Works and Public Housing (PUPR) Ministry. We have sent a proposal to the PUPR Ministry, God willing, the TOD construction can start in 2020,” he said last week.

The development is planned to be carried out by private developers through foreign capital investment (PMA) or domestic capital investment (PMDN). However, following the directions of SOE (State-Owned Enterprise) Ministry, there will be a hotel SOE participating.

In the 157-ha TOD area, a 7.6-ha rest area with 51 facilities has been built. The rest area, which has the most facilities and has received an award from MURI (Indonesian World Records Museum), is managed by PT Jasamarga Rest Area Batang, which comprised of PT Jasamarga Related Business (JMRB), PT PP (Persero) Tbk, PT PP Properti Tbk, and PTPN.

Besides providing basic facilities, the rest area has a playground, a health clinic, and a mini zoo. Besides that, there are centres for confectionery and crafts from MSME (Micro, Small, and Medium Enterprises).

Overall, the TOD area development will include hotels, beaches and water recreation areas, educational forest tourism, golf course, a large aquarium for marine organisms, and other properties.

The price of land around the TOD area is around Rp800,000 to Rp1 million per squaremetres. Meanwhile, rent for lands is around Rp5,000 to Rp10,000 per square metres per year.

According to Wihaji, other benefits for investors developing the TOD area are easy licences and certainty of land. Besides toll roads, other infrastructures that support the TOD area development area are electricity, clean water, and internet connection from all providers.

MSME centre

In the rest area that is included in the TOD, about 70% of the available spaces are designated for MSME to make sure that the area development will benefit the public.

Wihaji explained that, since the operation of Pemalang – Batang and Batang – Semarang toll roads, about 30,000 MSME experienced a decrease in revenue as there were less drivers going through Batang area.

“Drivers tend to be exhausted in Batang, so they take a break. Now they are only coming through. They no longer stop in Batang to eat or shop. So, I want the rest area concept to change, it must be a new destination,” he added.

He proposed to President Joko Widodo that MSME must be involved in toll road operation. Hence, the infrastructure will benefit the economy of the public. Welcoming the suggestion, the toll road-based TOD was carried out.

On the other hand, the toll road operation boosts investment in Batang. Based on the data from Central Java Capital Investment and One-Stop Integrated Services Agency (DPMPTSP), in the third quarter of 2019, Batang absorbed a foreign capital investment of US$726.74 million (Rp10.17 trillion), which was the second largest after Jepara.

Besides that, there is the Batang Coal-Fired Power Plant (PLTU) megaproject with a capacity of 2×1000 MW and an investment of US$4.2 billion. This project is planned to be commercially operational by the end of 2020.

“The development of road and energy infrastructures accelerate investment in Batang. Besides that, we are only 17 km from Tanjung Emas Port in Semarang. So, distribution can be faster,” he explained.

Wihaji continued that, besides TOD, Batang has 9 other investment potentials, such as integrated shopping areas, hotels, Batang Super Block (BSB) sports centre, recreational centres and hotels in Sigandu, as well as industrial estates.

There are also plans to develop Batang Wonderful Land, Clapar Eco Green Park, Bio Plantation Agriculture, fisheries and cold storages, properties and residentials, as well as recreational areas on mountains.

Wihaji explained that the government was committed to assist and provide certainty in licencing and regulations.

Besides that, Batang Regency is superior in terms of the price of land that is still affordable and the competitive minimum wage that is Rp2 million a month.