Toll Road Regulatory Agency at the public works and housing ministry officer decided to raise nine sections of the Jakarta Outer Ring Road toll road tariffs soon - Photo by Jasa Marga Office

JAKARTA (TheInsiderStories) – Toll Road Regulatory Agency at the public works and housing ministry officer decided to raise nine sections of the Jakarta Outer Ring Road (JORR) toll road tariffs soon. The existing tariffs have been enforced since two years ago.

The adjustment based on law Number 38 of 2004 concerning roads and the government regulation Number 15 of 2005 concerning toll Roads. Based on the regulation, the JORR integration toll road and the Pondok Aren – Ulujami toll road tariffs  will be adjusted based on inflation rate 5.52 percent.

Previously, the management of toll road operator, PT Jasa Marga Tbk (IDX: JSMR), stated would make an adjustments to the JORR toll road tariffs. As reported, due to financial problems during the pandemic, decided to cut 2020’ spending from initial targets Rp20 trillion to Rp 17.5 trillion (US$1.19 billion).

The issuer also delayed some projects as part of the company strategy to maintained the financial balance sheet due to the pandemic. Finance director, Donny Arsal, said on August 26, the use of investment is prioritized for the maintenance of safety and the convenience of the toll roads owned by the company.

He added, the constructor also postponed the issuing of the sharia asset backed securities and prefered to issues a commercial paper up to Rp 1 trillion. While, the issuance of asset back securities will be reviewed again by Jasa Marga at the end of the year. The instruments are short-term debt securities issued without collateral on the money market and issued by companies or financial institutions.

The builder also reviewing the issuance of a number of financial instruments to increase funding for the completion of the company projects like Islamic asset back securities with a target fund at least Rp2 trillion. For this securitization, the issuer will use the basic asset of ticket revenue from the Jakarta Outer Ring Road Cilincing – Cikunir in the capital city.

Jasa Marga is also studied to re-issue the DINFRA (also asset back securities) by using the underlying one of the Trans Java toll roads. In addition, the company is also reviewing the issuance of zero coupon bonds and step up coupon bonds. However, unfortunately the company still has not found a suitable pricing for publication.

Last June, the operator announced looking around Rp2 trillion from bond market to pay the its debt. This year, the operator has a number of maturing debts with total amount Rp5 trillion. Series JM-10 issued in 2010 will mature on Oct. 12, 2020 and have a principal amount of Rp1 trillion. Then, Komodo bonds listed on the London Stock Exchange since Dec. 13, 2017 will mature on Dec, 11, 2020 with worth of Rp4 trillion.

 70 percent shares of Jasa Marga owned by the government and become a public company in 2007. As of December 2019, the company operated 1,168 kilometers (km) of toll roads across various parts of Indonesia, or 55 percent of all toll roads by length in operation.

In terms of total toll road concessions, it has the right to build, own and operate around 1,527 km of toll roads in total. The Indonesian Toll Road Authority is the regulator for the industry and the concession counter party for the issuer.

US$1: Rp14,700

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