(Photo: Jasa Marga)

JAKARTA (TheInsiderStories) – State-owned construction firm PT Waskita Karya Tbk (IDX: WSKT) and state-owned toll operator company PT Jasa Marga Tbk (IDX: JSMR) are planning to raise Rp8 trillion (approx. US$582 million) from the divestment of six toll road projects to investors in the first semester this year.

WSKT and JSMR previously have planned to divest their shares in six Trans Java toll road sections. 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.

In the first phase of divestment, WSKT in the process of selling the newly launched Bekasi-Cawang-Kampung Melayu (Becakayu) toll road, and the second phase divestment will be selling several sections of the Trans-Java toll road, namely the Kanci-Pejagan, Pejagan-Pemalang, Pemalang-Batang, Batang-Semarang, Solo-Ngawi, Ngawi-Kertosono and Pasuruan-Probolinggo sections.

Meanwhile, JSMR is planning to divest its stake in Semarang-Batang, Ngawi-Kertasono and Solo-Ngawi toll road sections.

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.

Written by Elisa Valenta, email: elisa.valenta@theinsiderstories.com

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