Indonesia’s Adhi Karya to Construct Solo-Yogyakarta Toll Roads in 2019

PT Waskita Karya Tbk (IDX: WSKT) berencana untuk mendivestasi saham tiga jalan tol miliknya untuk melunasi hutang perusahaan yang semikin menumpuk, ujar direktur utamta kepada anggota parlemen pada hari ini (07/01) - Photo by President Office

JAKARTA (TheInsiderStories) PT Adhi Karya Tbk (IDX: ADHI), a state-owned construction company, aims to start the construction of the Solo – Yogyakarta toll road in 2019, said its president on Tuesday (21/08).

The project as part of Trans Java toll road, is estimated need an investment of Rp19 trillion (US$1.31 billion). ADHI will joined with a local transportation services provider Gama Group also roads and bridges developer PT Daya Mulia Turangga for the project.

ADHI’ President Director Budi Harto explained, that the toll road would become a new milestone for the company in the toll road business. So far, the company has been participating in the Bali Mandara toll road with a portion of only 2 percent.

He said in the toll road project, ADHI will controlled 40 percent of the shares, while 60 percent owned by the Gama Group and other private companies.

Indonesia needs $520 billion to meet its infrastructure needs in the next five years. Government has urged SOEs to find alternative financing through direct investment or capital market by issuing new instruments.

Indonesia is continuously working to realize an effective and efficient national transportation system to improve the mobility of goods and services. In an effort to support the national logistics system, the government implements a policy of transaction integration on toll roads.

This, is in line with Law Number 38 Year 2004 concerning Roads mandating that Toll Roads are held to improve the use and effectiveness of goods distribution services, and affirmed in services to support the improvement of economic growth and is aimed at increasing efficiency of distribution service in supporting the improvement of economic growth especially in areas that have high level of development.

Beside build the basic infrastructure, government also has plan to integrate the management of toll road across the country. The toll adjustment is expected to address the needs of logistics actors and encourage trucks or containers to utilize toll roads thus reducing arterial road burden.

The integration of these toll roads also encourages partiality to freight logistics and public transport. With an integrated payment system, 61 percent of JORR Toll Road users will benefit from paying cheaper rates than before.

The benefits of toll road integration are the efficiency of time and cost, especially toll road users, especially logistic transportation that stopped 2-3 times to only one time with the lower tariff, he ended.

The Gama Group engages in the property business through the Gamaland entity. The group is owned by Ganda and Martua Sitorus, owners of the Wilmar Group.

US$1: Rp14,500

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