PT Hutama Karya, plans to bring three of its subsidiaries take a floor (IPO) at the Indonesian Stock Exchange starting next year - Photo by the Company

JAKARTA (TheInsiderStories) -State-owned toll operator, PT Hutama Karya, plans to bring three of its subsidiaries take a floor (IPO) at the Indonesian Stock Exchange (IDX) starting next year, said the spokesman last week. The companies are PT HK Infrastruktur, PT HK Realtindo, and PT Hakaaston.

“With the existence of COVID-19, the IPO plan will be estimated in 2021 or 2022,” said the spokesman, Muhammad Fauzan last week.

Based on the company data, HK Infrastruktur was established in 2015 after received an assignment to develop the Trans Sumatra toll road. Apart from Trans Sumatra, this line has worked on other strategic projects such as the Cinere – Jagorawi and Mojokerto – Kertosono toll roads.

While, HK Realtindo started from the property division and was officially established as a subsidiary in 2010. The developer managed various property products, like H Tower Rasuna Said and H Residence MT Haryono in Jakarta also Kubika Homy in Tangerang.

And, Hakaaston produces precast concrete products. One of the facilities is located in Bojonegara, Cilegon, which is now has supported the precast needs for the construction of the Trans Sumatra toll road.

Hutama has received full trust by the government to carry out the Trans Sumatra project, stated in Presidential Regulation Number 117 of 2015 in conjunction with Number 100 of 2014 concerning the Acceleration of Toll Road Development in Sumatra. The toll road has eight sections.

Recently, Indonesia’ Toll Road Regulatory Agency has ordered Hutama Karya consortium to build toll road projects in North Sumatera. The project has value Rp13.4 trillion (US$905.41 million). The operator joined with PT Jasa Marga Tbk (IDX: JSMR) and PT Waskita Toll Road and has formed PT Hutama Marga Waskita to run the projects.

The projects including the construction of the Kuala Tanjung – Tebing Tinggi – Parapat toll road, in Medan, North Sumatra with total costs Rp9.6 trillion and targeted to operate in 2020 with a 40-year concession period. 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.

The is considered to increase the connectivity of tourist destinations, including access from Medan to the Lake Toba National Strategic Tourism Area. The toll road will consist of six sections, Tebing Tinggi – Inderapura (20.4 km), Inderapura – Kuala Tanjung (15.6 km), Tebing Tinggi – Serbelawan (30 km). Then, Pemelawan – Pematang Siantar (28 km), Pematang Siantar – Seribudolok (22.3 km), and Seribudolok – Parapat (16.7 km).

The construction of the project is supported by government funding. This effort is intended to increase the level of investment feasibility. At present, the two sections are still in the stage of land acquisition. The toll road will have seven interchanges in Inderapura, Tebing Tinggi, Serbelawan, Pematang Siantar, Seribudolok, Parapat, and Simpang Susun Raya.

Minister of public works and public housing, Basuki Hadimuljono, said the construction of the project could increase accessibility to Lake Toba, so that tourists have many choices of transportation routes, ranging from air, sea, and land transportation modes. Currently, the minister adds, the government is also completing the preservation and widening of the 145.9 Km Samosir Island ring road.

With the completion of the road work, the tourists also have the choice of a land transportation route to get to Samosir Island from Silangit. During this time, the main access to get to Lake Toba and Samosir Island from the direction of Medan is via Parapat and crossing by ferry.

In addition to accelerating travel time from Medan to Lake Toba, he said, the toll road is also expected to spur economic growth in North Sumatra including the economic sector of the Port of Kuala Tanjung and tourism destination of Lake Toba which can be reached quickly.

US$1=Rp14,800

Written by Editorial Staff, Email: theinsiderstories@gmail.com