Reasons Why Toll Roads Should Be Paid
In large urban areas or provincial cross roads, there are usually expressways known as toll roads. These roads are said to have advantages over regular roads because they are faster and avoid traffic jams. However, to enjoy this "fast" road, there is a fee that you must pay. Of course, this makes many people wonder, why do toll roads have to be paid? Is it really impossible to make them free?
Before entering the toll road and along the toll road, we usually see many traffic signs such as directional signs, public facility signs, and so on. In addition, there are also signs indicating which toll gate to choose according to the type of vehicle. At this toll gate, drivers must pay a fee according to their vehicle type.
Reasons
Toll roads cannot be free because their construction relies on debt obtained through the sale of government bonds and so on. In addition, Indonesia also implements a Public Private Partnership (PPP) scheme that has been operational since 2012, allowing corporations to invest in toll roads. To attract investor interest, there must be a return that they receive.
Function of Toll Roads
Toll roads actually have a function that is almost similar to regular roads, intended for vehicles with two or more axles. The existence of toll roads provides benefits in the form of smoother traffic due to shorter travel distances and times. However, you must pay a fee to enjoy this facility.
What is the Abbreviation for Toll Road?
Perhaps not many know that toll roads are an abbreviation for "Tax on Location," which can be interpreted as a tax at the location. In meaning, the Tax on Location or Toll road is certainly very different from the expressways referred to as highways or freeways in traffic signs.
It's understandable that not many people know this because in the traffic signs leading to toll roads, the full form of toll is not written out.
Who Owns the Toll Roads?
When talking about the ownership of toll assets, toll roads remain state-owned. However, with the current scheme, these toll roads will be concessioned to the corporations that invest in their construction and operation. The concession rights are the management and licensing rights granted by the state to the corporations.
Where Does the Toll Money Go?
Every time a driver enters a toll gate, they must pay a fee set according to the type of vehicle, destination, and distance traveled. The money paid by the drivers is then used by third parties who invest in the construction of the toll road to recoup their investment and for the maintenance needs of the toll road.
In addition, we must not forget that private companies are certainly looking for profit, right? So, the toll money will not stop until they recoup their investment, but also until they make a significant profit. During the agreed concession period, the toll money will go into the cash of the private entity that invested in the toll road, referred to as recurring revenue. Generally, the concession period for toll roads in Indonesia is typically 5 to 15 years.
The Public Private Partnership (PPP) scheme allows third parties to invest in the "business" of toll roads. This scheme was launched due to the inability of state funds to finance all infrastructure projects in Indonesia. Thus, it is very clear why toll roads must be paid, because companies want to recoup their investment, cover operational costs, and make a profit.
