Socio-Economic Impact Analysis of the Trans Sumatra Toll Road Development

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• Infrastructure development is a key focus of the Indonesian government’s efforts to boost national economic growth and accelerate interregional connectivity.
• One of the largest projects part of this long-term plan is the Trans Sumatra Toll Road (JTTS). This toll road stretches from the southern tip of Lampung Province to the northern tip of Aceh Province.
• Spanning over 2,800 kilometers, the JTTS is designed to serve as the backbone of land transportation on the island of Sumatra, opening up access to previously isolated regions and accelerating the movement of goods, services, and people.
• Such a large-scale development certainly brings unavoidable consequences. Beyond accelerating connectivity and improving logistics flows, the JTTS project also has various socio-economic impacts, particularly for local communities living along the development route. These changes are not only physical but also encompass complex social and cultural aspects.

Introduction

The construction of the Trans Sumatra Toll Road (JTTS) is not just another infrastructure project, but an ambitious one, stretching from Lampung to Aceh. It connects vital routes designed to transform the economic and social landscape of Sumatra Island.

Behind its grandeur, this development has brought a huge social and economic impact on the surrounding community. From logistics efficiency to the conversion of agricultural land, everything is interconnected in a vortex of change.

Background to the Construction of the Trans Sumatra Toll Road

The Trans Sumatra Toll Road is part of the National Strategic Project (PSN) stipulated in Presidential Decree №131 of 2022. This project was assigned to PT Hutama Karya, with an investment value reaching more than IDR 200 trillion (Annisa et al., 2024).

The route stretches from Bakauheni (Lampung) to Banda Aceh, passing through key cities like Palembang, Pekanbaru, Padang, and Medan. Its primary goal is to promote economic equality, accelerate logistics mobility, and open access to previously isolated areas.

Positive Impact of JTTS on Logistics Efficiency

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The Trans Sumatra Toll Road (JTTS) accelerates the flow of goods from ports to industrial centers. For example, travel time from Bakauheni Port to Palembang City can now be cut by up to 5 hours (Ibad et al., 2021). Time efficiency is directly proportional to cost efficiency. The JTTS cuts logistics costs by 20–30%, which is vital for the agricultural, plantation, and manufacturing industries. JTTS routes open up fast lanes between provinces, making travel that previously took days possible in just a matter of hours.

Economic Impact of Toll Road Construction

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Based on an input-output analysis, the JTTS project has impacted the national economy by 0.34% of Indonesia’s GDP in 2022 (Annisa et al., 2024). Leading commodities such as palm oil and rubber now have faster access to export ports, increasing the competitiveness of local products (Ibad et al., 2021).

Land prices have seen a significant increase in areas along the JTTS. This development phenomenon opens up investment opportunities, but can also fuel speculation about rising land prices. The JTTS construction process also employs thousands of local workers.

Social Impact of Toll Road Construction

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The conversion of rice fields to toll roads directly impacts farmers. A case study in Aceh showed that the conversion of 127.89 hectares of rice fields resulted in a 27% decrease in farmer income (Pane & Juliaviani, 2024).

In Lampung, 495 hectares of residential land belonging to the Jatimulyo community were forced to relocate. Despite compensation, the relocation process sparked community concerns (Fuadi & Nasrudin, 2022). MSMEs along the Trans-Sumatra Highway also experienced a decline in revenue due to reduced traffic as road users began to switch to the toll road (Sembiring, 2022). Infrastructure modernization often impacts local wisdom, social interactions, and traditions.

Conclusion

The construction of the Trans-Sumatra Toll Road has had numerous impacts, both positive and negative. While it has accelerated connectivity and distribution, it has also shaken the social and economic fabric of local communities. An inclusive and equitable approach is needed to ensure this development truly benefits the entire community, not just a select few.

REFERENCE:

1. Annisa, Suharto, U. S., Syaifudin, R., Sayifullah, & Ginanjar, R. A. F. (2024).Impact of the Trans Sumatra Toll Road Development on the Indonesian Economy: 19(2), 213–238.
2. Fuadi, F., & Nasrudin, M. R. (2022).1 , 2 1,2. 06(02), 1–7.
3. Ibad, M. Z., Iskandar, D. T., Adam, F., & Tabrani, S. N. (2021). Economic Impact of Leading Commodities in the Construction of the Bakauheni-Kayu Agung Trans Sumatra Toll Road (JTTS).Journal of Science and Applicative Technology, 5(2), 387. https://doi.org/10.35472/jsat.v5i2.278
4. Pane, M. M., & Juliaviani, N. (2024). THE EFFECT OF RICE FIELD LAND CONVERSION AFTER THE CONSTRUCTION OF THE BANDA ACEH — SIGLI TOLL ROAD ON THE SUSTAINABLE LIVELIHOOD OF RICE FARMERS IN ACEH BESAR DISTRICT (The Effect of Rice Field Conversion After the Construction of the Banda Aceh — Sigli Toll Road on. 9, 47–62.
5. Sembiring, M. M. (2022). Analysis of the Impact of Infrastructure Development on Community Income: A Case Study of the Pekanbaru — Minas Toll Road Construction.Thesis, 1–174.