The Ministry of Public Works of Indonesia is set to launch two new toll road projects in the North Sumatra and West Java provinces once it receives a $240m loan from the Export-Import Bank of China (China Exim Bank).

The Indonesian Government is expected to sign the loan agreement with China Exim Bank this week.

Public Works Deputy Minister Hermanto Dardak was quoted by The Jakarta Post as saying that both projects are vital to developing regional economies as they connect important activity centres.

The toll project in North Sumatra will link Medan, the capital city, with an oil palm plantation centre in Tebing Tinggi and Kuala Namu International Airport, which is set to open in 2013.

The project in West Java will involve the construction of a road to connect Cileunyi, Sumedang and Cisumdawu.

According to the Public Works Ministry, 48% of the required land for the project has been bought between Medan and Kuala Namu and 57% between Kuala Namu and Tebing Tinggi.

For Cisumdawu, the ministry has purchased 37% of land for its first section and 45% in the second section, with plans to divide the toll road into six different sections.

"The Indonesian Government is expected to sign the loan agreement with China Exim Bank this week."

On the loan with China Exim Bank, Dardak commented: "We had previously signed the contract agreement to start construction of both toll roads with China."

The two new toll projects are expected to be completed in 2015, the publication reported.

In October 2012, the Indonesian Government begun the construction of a 2,700km-long Trans-Sumatra toll road, which is being undertaken by state-owned builder Hutama Karya with a total investment of IDR330trn ($34.2bn).

Expected to be completed in 2013, the new toll road will link Sumatra’s northern province Aceh with the southern province of Lampung.