JAKARTA (TheInsiderStories) – Toll road manager, PT Jasa Marga Tbk (IDX: JSMR), has prepared nine toll roads to be offered through the sovereign wealth fund, Indonesia Investment Authority (INA), said the director on Monday (03/08). The company targeting three toll roads with divestment values around Rp1.5 trillion to Rp3 trillion (US$209.79 million) will be executed in this year.
In detailed, the toll roads are 61.7 kilometers (km) of Medan – Kualanamu – Tebing Tinggi with (55 percent), 36.4 km Jakarta Cikampek II Elevated (80 percent), Semarang – Batang along 75 km with 40 percent ownership, Gempol – Pandaan along 13.6 km (40 percent ownership), and Pandaan-Malang with length 38.9 km (60 percent).
Then, the 34.2 km Gempol – Pasuruan section with 99 percent ownership, Balikpapan-Samarinda along 98.9 km (67 percent), Manado – Bitung with length 39.9 km (65 percent), and Bali Mandara along 9.7 km (65 percent). According to finance director, Donny Arsal, the nine potential toll roads are part of the 21 segments that are included in the asset recycling strategy.
Of these sections, 18 toll roads are included in the brown field asset category, which are fully or partially operated. He stated, “Many investors are looking at the Trans Java and Greater Jakarta sections because the traffic is heavy.”
End of last year, Dana Investasi Infrastruktur (DINFRA) Toll Road Mandiri, managed by PT Mandiri Manajemen Investasi, has announced to lift its asset portfolio by buying shares of PT Jasamarga Gempol Pasuruan from the parent. The maximum number of shares to be acquired is 71.81 million shares or equal to 59.35 percent of the total enlarged capital and fully paid of the the operator of toll road.
The toll roads manager currently owned 99.3 percent shares of the subsidiary. The Gempol – Pasuruan toll road has a length of 34 km and the concession up to 2058. As of September 2020, the transaction volume on this toll road has reached 4.3 million vehicles with revenues of Rp142.2 billion.
DINFRA was listed on the Indonesia Stock Exchange in April 15, 2019. The instrument managed to raise Rp1.1 trillion of funds. The Mandiri Investasi’ product has received permission from the regulator since October 2018 and has been purchased is Jasamarga Pandaan Tol. The toll road connects the Surabaya – Gempol and the Pandaan – Malang toll road, which has a concession period of 37 years and has been operating since 2015.
The state-owned firm targeting to operates 1,292 km of toll roads by 2021 from now around 1,191 km of toll roads with a total concession length of 1,527 km. Arsal stated, the issuer will adding another 27.85 km of toll road from the Jakarta – Cikampek II toll road construction project in this year.
Jasa Marga still pocketed 236 kilometers of toll projects will develop after 2021, which are consists of the Bogor Ring Road Section IIIB (2.25 km), Jakarta – Cikampek II Selatan (34.15 km), Probolinggo – Banyuwangi (172 km), and Ngawi – Kertosono (27.90 km). In this year, the developer to operates of 102 km of toll roads consisting of the Pandaan – Malang (2.97 km), JORR2 Cinere – Serpong (10.14 km), JORR2 Kunciran – Cengkareng (14.19 km), Balikpapan-Samarinda (33.12 KM), Manado – Bitung (39 km), and Bogor Ring Road (2.65 km).
Last year, the constructor decided to cut this year’ capital expenditure from initial targets Rp20 trillion to Rp 17.5 trillion. The builder also delayed some projects as part of the company strategy to maintained the financial balance sheet due to the pandemic. He added, the constructor also postponed the issuing of the sharia asset backed securities and prefers to issues a commercial paper up to Rp1 trillion.
Jasa Marga is also reviewing to re-issue the DINFRA 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. The toll road producer is currently 70 percent owned by the government and become a public company in 2007.
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