JAKARTA (TheInsiderStories) – PT Hutama Karya, the construction firm owned by the government, proposed an additional capital injection Rp19 trillion (US$1.40 billion) to complete Trans Sumatera toll road projects. Last year, the operator has received Rp7.5 trillion from President Joko Widodo as stipulated in the government regulation Number 71 of 2020.
The company has fully operated several sections in the longest toll road in the country, such as Bakauheni – Terbanggi Besar Toll Road (141 kilometers), Terbanggi Besar – Pematang Panggang – Kayu Agung Toll Road (189 kilometers), Palembang – Indralaya Toll Road (22 kilometers), Medan – Binjai (15 kilometers), Pekanbaru – Dumai (132 kilometers), and Sigli – Banda Aceh to Indrapuri – Blang Bintang (14 kilometers).
In total, the phase I has been build by Hutama karya around 1,156 kilometers, with 643 kilometers as major road and 513 kilometers as operating sections. The director general of Highways of the public works and housing, Hedy Rahadian, said there were deficit financing of Rp60 trillion for the construction of Trans Sumatra.
If the deficit is not immediately solve then will give an impact to the projects. Beside from the state budget, his office considered use their owned fund, but this option need a revision of the presidential decree regarding the assignment of the development of Trans Sumatera to the state firm.
Its estimated that until 2024, Hutama Karya need fresh funds to complete the construction of phases I and needs additional equity around Rp80 trillion. The CEO, Budi Harto, explained until 2029, the fresh funding is expected disburses by the government in stages until 2023. In details, Rp15 trillion in 2021, Rp30 trillion in 2022, and Rp35 trillion in 2023.
He adds, the company will experiences negative cash flow caused of the high interest expenses of the project financing. The numbers, he continued, with the assumption, the builder obtain a revolving funds from from the Toll Road Regulatory Agency worth of Rp20 trillion in stages.
Harto said, Hutama Karya will posts a net losses until 2029 and start to book a profit of Rp849 billion in 2030. Next year, the operating cash flow is estimated to be minus Rp1.95 trillion with a cash flow of Rp19.25 trillion. While, the operating income in to reach Rp1.47 trillion.
The toll road agency has ordered the state-owned consortium to build toll road projects in North Sumatera, with total costs Rp13.4 trillion. The consortium are, Hutama Karya, PT Jasa Marga Tbk (IDX: JSMR), and PT Waskita Toll Road has formed PT Hutama Marga Waskita to run the projects.
The 143.5 kilometers (km) toll road project is a continuation of the 61.72 km Medan – Kualanamu – Tebing Tinggi toll road. Previously the Medan – Kualanamu – Tebing Tinggi had been completed and connected to the Belawan – Medan – Tanjung Morawa toll road to increase the connectivity of tourist destinations, including access from Medan to the Lake Toba.
The toll road will consist of six sections, namely section one Tebing Tinggi – Inderapura (20.4 km), section two Inderapura – Kuala Tanjung (15.6 km), section three Tebing Tinggi – Serbelawan (30 km). Then, section four Pemelawan – Pematang Siantar (28 km), section five Pematang Siantar – Seribudolok (22.3 km), and section six Seribudolok – Parapat (16.7 km).
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