PT Jasa Marga Tbk (IDX: JSMR) will invests up to Rp6.6 trillion (US$449 million) for the Solo -Yogyakarta International Airport - Kulon Progo toll road project in Central Java - Photo: Privacy

JAKARTA (TheInsiderStories) – State-owned toll road operator, PT Jasa Marga Tbk (IDX: JSMR) will invests up to Rp6.6 trillion (US$449 million) for the Solo -Yogyakarta International Airport – Kulon Progo toll road project in Yogyakarta and Central Java. The toll road has a length of 96.57 kilometers (km) with a total investment of Rp26.6 trillion with a concession period of 40 years.

Corporate finance group head of the operator, Eka Setya Adrianto, said the the issuer has a 25 percent stake in PT Jogjasolo Marga Makmur (JMM). The joint venture company is a consortium holds by PT Mulia Turangga – PT Gama Group 51 percent, Jasa Marga 25 percent, and PT Adhi Karya Tbk (IDX: ADHI) 24 percent.

The toll road is targeting to be operated in 2023 and will be fully operational in 2024. The projects are divided into three sections, Kartasura – Purwomartani (42.37 km), Purwomartani – Lime (23.42 km), and Lime – Purworejo (30.77 km).

The project is part of the National Strategic Project to improve the smooth distribution of goods and services, develop industry and tourism and improve the connectivity in Java. According to minister of public works and public housing, Basuki Hadimuljono appreciated the involvement of private sector in this projects.

“Next month, it is targeted that there will be another signing for the Bawen – Jogjakarta toll road. So later Joglosemar (Jogjakarta, Solo, Semarang) are connected to each other and become a golden triangle that continues to grow, especially for tourist areas,” he told reporters on Friday (09/11).

The minister hopes that the construction of this new toll road can encourage the National Economic Recovery program during the pandemic. Hadimuljono stated, the government would extend the Trans Java toll road from its current end to Bali Island. He said the 1,350 kilometer-long toll road has connects the western to the eastern of the Java island.

He mentioned, that nine other toll road projects and a multi-lane free-flow e-toll system had been prepared and would soon enter the pre-qualification auction in this month. The minister said, President Joko Widodo decided to tap infrastructure development as the top priority in the 2019 – 2024 National Medium-Term Development Plan. 

He continues, In 2021, the ministry will received an indicative ceiling funds of Rp115.58 trillion. Hadimuljono said, his office will run five programs for management support, vocational education and training, connectivity infrastructure, water,housing and residential areas.

In detailed, the water resources sector will get Rp44.4 trillion, which is for the dam constructions Rp15.35 trillion, irrigation and swamps Rp7.27 trillion, operation and maintenance worth of Rp6.38 trillion, destructive power of Rp 644 trillion, groundwater and new water of Rp3.07 trillion, Sidoarjo Mud Control Rp280 billion, land acquisition Rp3.03 trillion and other support of Rp2.64 trillion.

Other funds will allocated for connectivity program worth of Rp38.8 trillion. This budget is specifically used for road construction, road widening adding lanes, preservation of national roads, bridge construction and duplication, bridge replacement, preservation of national bridges, construction of flyovers, underpasses and tunnels as well as expressways.

In the field of patent is allocated as much as of Rp22.33 trillion and for the housing sector has Rp7.48 trillion. These funds will be allocated for flats, special houses, self-help houses, public and commercial houses, and other support.

In this month, public works and public house ministry to offer nine toll road projects. Hadimuljono said, in 2020, the government prepared investment Rp395 trillion for toll road projects across the archipelago. He added, one project, Solo – Yogyakarta toll road with have length 10 kilometers will begin the construction in September. The project need costs Rp16 trillion.

He reported, some of toll road projects have been build by the country will be inaugurates like Banda Aceh – Sigli with a length of 14 kilometers (km), Pekanbaru – Dumai along 131 km, Manado 21 km, Balikpapan – Samarinda 33 km. Then, part of Makassar toll road, Cibitung – Cilincing, Kriyan toll road in East Java will be inaugurated at the end of the year.

Indonesian government targeting to build 3,000 km new toll road across the country in five years time. President Joko Widodo said, in his first term, the country has build 720 km of toll road.

“In the next five years, we hope that we already have 5,000 km of toll roads. Therefore, we are still focusing on infrastructure development in addition to human resource development,“ he stated not long ago.

US$1: Rp14,700

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