JAKARTA (TheInsiderStories) – Publicly listed conglomerate company PT Astra International Tbk (IDX: ASII) and state-owned toll provider PT Jasa Marga Tbk (IDX: JSMR) has expressed their interest to acquiring a portion of shares in the toll road sections owned by state-owned construction company Waskita Karya (IDX: WSKT).
“One of the potential buyers is Jasa Marga through a tender mechanism. Astra is also one of the one bidders,” said President Director of Waskita M. Choliq at the public expose in Indonesia Stock Exchange.
He added, beside Astra and Jasa Marga, there are eleven investors are eyeing its unit, PT Waskita Toll Road’s assets and shares. Choliq explained, that the sale of its unit’s assets and shares divestment is targeted to be completed in September 2017 and the company has the potential to obtain fresh fund of more than Rp 7 trillion.
The construction firm is also projecting that the divestment will reduce its debt aggressively to Rp 20 trillion. Currently, Waskita is offering stakes in its 17 toll roads to investors in order to raise fresh funds to build another new toll roads.
The move is in line with President Joko Widodo’s direction to the State-Owned Enterprises (SOEs) to sell existing assets and build another infrastructure projects, funded by the sale of assets proceeds.
Among toll roads owned by Waskita Toll Road are Cipularang Toll Road, Cibitung-Cikampek Toll Road, Bekasi-Cawang-Kampung Melayu (Becakayu) Toll Road, Waru-Juanda Toll Road and Semarang-Bawen Toll Road. According to him, there are nine toll roads are ready to be sold in this year.
Waskita is being pursued to target 1,260 Kilometers of toll road before 2019. The project requires a fund of Rp 110 trillion.
At the same place, Paulus Bambang Widjanarko, Director at Astra International admitted, the its unit PT Astratel Nusantara eye Waskita’s toll road assets. Throughout this year, the company has prepared Rp2.6 trillion to work on toll road projects and in the first half of 2017, about 50 percent of the funds have been absorbed.
He said, that Astratel is still focusing on completing the three toll roads that had entered development phase. The three projects are Kunciran-Serpong, Serpong-Balaraja, and Semarang-Solo toll roads. The Mojokerto-Kertosono section of section 1, 2, 3, has been completed and is awaiting inauguration by the government.
According to him, the company has been accustomed to form a joint venture with local and foreign partners to work on toll road projects. One of them, Semarang-Solo toll road section, is a joint venture with Jasa Marga.
Indonesian Government keep pushed the development of infrastructure in the country to accelerated the economic growth and economic equality.
President Widodo has said that infrastructure development is on track, more than 40 percent of the national strategic projects are now in the construction stage.
He also noted that nine percent of the projects had been completed, while five percent were in the transaction stage and 37 percent were still in the planning stage.
Based on Presidential Decree No. 3/2016 and Presidential Instruction No. 1/2016 there are 225 such projects nationwide, including projects for highways, non-toll roads, railway lines, urban trains, airport revitalization and airport development, port construction and the three phases of the One-Million-Homes program.
He prefers to sell its assets than using the assets as collateral to raise new funds through assets securitization scheme. Two SOEs in financial services sector, Danareksa and BNI Sekuritas, will advice the company offering the assets to investors.
However, Choliq was reluctant to mention the new toll road projects to be developed the company. Currently, he emphasized that the company’s job is not merely as contractor but also try to develop toll road business, although its core business is still a contractor.
“If I tell you right now, a lot of people will be interesting to toll roads,” he added.
Meanwhile Deputy of Restructuring and Development Business of the Ministry of State Owned Enterprise Aloysius Kiik Roo encourages the SOEs not to keep its assets for the long time. He said some toll roads owned by Waskita were bought from other investors. The company has the option to raise fresh funds by selling stakes in those toll road and use the funds to develop other toll roads.
Aloysius Kiik Roo cited the case of Bacakayu Toll Road linking Bekasi and eastern Jakarta. Waskita could sell its shares on the toll road and use the proceeds to fund the development of new toll roads.
In 2017, Waskita will focus on the expansion of the toll road business and spare the capital expenditure of Rp 30.7 trillion. A total of Rp 25 trillion, or 81.43 percent of total investment, will be used to finance the toll road development by its subsidiary Waskita Toll Road.
Apart from using internal cash and bank loans, Waskita also plans to divest stake of PT Waskita Toll Road and issue bonds next year to finance its infrastructure projects. Waskita also plans to divest 10 percent stake Waskita Toll Road.
Currently, the company owns 16 toll road concessions with a total length of 767.29 kilometers (km). In 2017, Waskita targets to operate three new toll roads, including Bekasi-Cawang-Kampung Melayu (Becakayu) Section IB and IC toll road, Cimanggis -Cibitung section I toll road and Kertosono Solo-Solo-Sragen toll road section.
As for full year 2017, Waskita aims to generate revenues of Rp 24.3 trillion and net profit of Rp 1.68 trillion.
(Written by Linda Silaen, Email: email@example.com)