Photo by Waskita Karya

JAKARTA (TheInsiderStories) – PT Waskita Karya Tbk (IDX: WSKT), state-owned construction firm, is offering stakes in its 17 toll roads to investors in order to raise fresh funds to build 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.

“There are 17 toll roads available for sale. Maybe you (investors) can buy one,” said President Director of Waskita Karya, M. Choliq.

Among toll roads owned by Waskita Karya through its subsidiary PT 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.

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 in 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. (RF)

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