JAKARTA (TheInsiderStories) – PT Astra International Tbk (IDX: ASII) infrastructure developer’ ASTRA Infra through PT Astra Tol Nusantara officially acquired 44.5 percent of PT Jasamarga Surabaya Mojokerto (JSM) shares to strengthen the investment portfolio in the Trans Java toll road.
The company hold the Surabaya -Mojokerto toll road concession in East Java.
President Director of ASTRA Infra Djap Tet Fa said in an official statement, the acquisition of the shares was marked by the signing of a sale agreement with PT Moeladi (24.2 percent) and PT Wijaya Karya Tbk (IDX: WIKA) with total shares 20.3 percent.
With the completion of the acquisition process, ASTRA Infra now has 44.5 percent of JSM shares, while the remaining 55.5 percent is owned by PT Jasa Marga Tbk (IDX: JSMR).
“The 36.3 km Surabaya-Mojokerto toll road acquisition will increase the contribution of ASTRA Infra on the Trans Java Toll Road to 338.6 km or around 30 percent of the total length of the Trans Java toll road,” he said in a written statement on Friday (05/17).
ASTRA Infra’ contribution to the Trans Java Toll Road includes the Tangerang-Merak (72.5 km), Cikopo-Palimanan (116.8 km), Semarang-Solo (72.6 km), Jombang-Mojokerto (40.5 km) and Surabaya-Mojokerto (36.3 km).
The Surabaya-Mojokerto toll road which is connected to the Jombang-Mojokerto toll road and the Surabaya-Gempol toll road has been fully operational since 19 December 2017.
This toll road segment is one of the strategic Trans Java toll lanes because it connects the city of Surabaya with the western part of East Java.
Fa hopes that the existence of this toll road can reduce congestion along the Surabaya-Mojokerto route, improve connectivity and become the main national logistics route, so that it will increase the economic potential of the Mojokerto, Jombang and surrounding areas in particular, and East Java as a whole.
“The increasing contribution of ASTRA Infra on the Trans Java toll road is in line with ASTRA’s aspirations to prosper with the nation,” Fa said.
At present ASTRA Infra has 6 toll road sections where 5 sections have been fully operational on the Trans Java toll road with a total length of 338.6 km.
In addition to the five Trans Java toll roads, ASTRA Infra also has the Serpong-Kunciran toll road which is part of JORR 2 (Jakarta Outer Ring Road).
However, ASTRA Infra so far not yet booked profits from the portfolio in the toll road business. The estimated profit can only be obtained in the next 2-3 years in line with the increase in traffic.
Based on Astra International‘s financial report as of September 2018, revenues from the logistics and infrastructure segment reached Rp5.4 trillion. This amount is only 3 percent of Astra International’s total revenue of Rp174.88 trillion.
Meanwhile, Director of Human Capital and Development of WIKA Novel Arsyad, said that the company’s action was a strategic step that was beneficial for Astra Infra and WIKA.
“For WIKA, which is now being transformed from a construction company into an investment company, we want to focus on optimizing the business portfolio, which will benefit WIKA in terms of recurring income. This agreement is part of the process of restructuring our investment portfolio,” he explained.
This year, WIKA has provided a capital expenditure of Rp18.19 trillion which will be focused on investment projects in the energy and industrial plant, building and property and infrastructure sectors.
This investment project will also contribute a new contract significantly, so that it will provide multiple benefits for WIKA, he added.
Written by Daniel Deha, Email: email@example.com