JAKARTA (TheInsiderStories) – PT Waskita Karya Tbk (IDX: WSKT) through its subsidiary PT Waskita Toll Road (WTR) funding worth Rp5 trillion (US$364.96 million) by issuing Mutual Fund Limited. WTR divest its shares in three of the Trans Java toll roads.
The state-owned construction firm and toll operator PT Jasa Marga Tbk (IDX: JSMR) are planning to raise Rp8 trillion from the divestment of six toll road projects to investors in the first semester of this year.
The proceeds of the divestment will be used to finance various new toll road projects of the companies in the future, in addition to the issuance of private equity funds.
Waskita offered a newly launched several sections of the Trans-Java toll road while JSMR is planning to divest its stake in Semarang-Batang, Ngawi-Kertasono and Solo-Ngawi toll road sections also are part of Trans Java toll road.
Developing the transportation infrastructure has become President Joko Widodo’s focus aiming at slashing the national logistic costs. Currently, the government is studying the possibility of cutting toll road tariffs for specific trucks, hence companies engaged in transportation logistics would be the key beneficiaries.
The study comes after stakeholders have complained about the expensive prices that are charged by toll road operators (most of which are state-controlled companies).
He said a price cut of up to 30 per cent is possible. A cheaper price would improve the competitiveness in the logistics sector.
Herry Trisaputra Zuna, Head of the Indonesia Toll Road Authority at the Ministry of Public Works and Public Housing, said the possible lower toll road tariffs would only be applied on a certain toll road sections, particularly new ones that are connecting big cities.