A consortium of four state-owned firms of Indonesia, PT Jasamarga Kualanamu Tol, has won a concession to operate the Medan-Kualanamu-Tebing Tinggi toll road in Deli Serdang, North Sumatra, Indonesia.

The 40-year concession deal was signed by PT Jasamarga Kualanamu Tol president director Agus Suharyanto and the Public Works Ministry Toll Road Authority Body (BPJT) head Achmad Gani Ghazali.

Said to be part of a plan to build the mega Trans-Sumatra toll road project, the 61.7km toll road and a part of the ministry’s support for the Master Plan for the Acceleration and Expansion of the Indonesian Economy (MP3EI) programme, will connect the entire island of Sumatra from Aceh to Lampung.

"The alternative route will connect Medan and the eastern part of the province."

During the signing ceremony, Agus told reporters that the alternative route will connect Medan and the eastern part of the province, Jakarta Post reported.

The toll road is expected to help boost economic growth on the island.

Construction of the first 17.8km section of the toll road started in September by the Public Works and Public Housing Ministry. Set for completion in June 2016, the road would connect Medan, Perbarakan and Kualanamu.

The consortium including toll road operator PT Jasa Marga, PT Pembangunan Perumahan, PT Waskita Karya and PT Hutama Karya will construct the remaining section of 43.9km connecting Perbarakan and Tebing Tinggi.

Involving an investment of IDR1.1 trillion ($87m), the first section’s working progress had reached 15%.