JAKARTA (TheInsiderStories) – PT Jasa Marga Tbk (IDX:JSMR) registered the Infrastructure Investment Fund (DINFRA) Toll Road Mandiri worth of Rp423.5 billion (US$30.25 million) on the Indonesia Stock Exchange today (04/15). This year, the state-owned toll operator targeting to managed funds up to Rp1 trillion from the new instrument.
DINFRA is a vehicle in the form of collective investment contract that used to gather funds from the investing public used mainly for investment in infrastructure assets. These investment products are intended to provide a funding alternative for construction of infrastructure in Indonesia through securitization of infrastructure assets, and at the same time to provide an alternative investment product for investors.
In this publication, Jasa Marga and Mandiri Investment Manager offered DINFRA through public offerings that can reach retail and institutional investors. The company CEO Desi Arryani stated that DINFRA’ underlying assets are the 13.61 kilometers Gempol – Pandaan toll road segment, managed by PT Jasamarga Pandaan Tol.
Before issuing this instrument, Jasa Marga has issued various funding instruments such as securitisation of Jagorawi toll road assets, project bonds, komodo bonds to limited equity-based investment funds.
“We hope that more and more not only institutions, communities will participate in infrastructure development,” said her.
The advantages of DINFRA compared to other investment products for investors are that it can be providing an alternative solution for investors to invest in infrastructure assets directly or indirectly through share ownership in the Infrastructure Ownership Company.
The instrument also provides additional benefits in the diversification of portfolios in infrastructure assets that have not been or are in the process of development (greenfield) and that have been generating income (brown-field) through alternative investment facilities that have the potential to reduce portfolio volatility.
This year, the state-owned company prepared capital expenditure Rp27 trillion. According to Arriyani, there are several toll roads targeted by Jasa Marga in 2019 such as Semarang-Demak toll road in Central Java and Gedebage-Tasikmalaya toll road in West Java. For the Semarang-Demak Toll Road project, the company formed a consortium together with state-owned developers PT Waskita Karya Tbk (IDX: WSKT) and PT Brantas Abipraya.
Other funds will use for the development of the Jakarta Outer Ring Road 2 with a length of 35.5 kilometers (km), Kunciran – Serpong 11.20 km, Serpong – Cinere 10.1 km, Jakarta – Cikampek II Elevated 36.4 km around the Greater Jakarta, and Pandaan-Malang toll road with 38.48 km.
In addition, Jasa Marga will also complete several parts of the Medan-Kualanamu-Tebing Tinggi toll road in North Sumatera for 9.1 km, Balikpapan-Samarinda toll road in East Kalimantan along 99.4 km, and also 39.9 km of Manado-Bitung toll roads in North Sulawesi, said Arryani.
Beside toll roads, Jasa Marga also intends to develop the area on the toll road corridor through its subsidiary, PT Jasamarga Properti, which is engaged in the property sector. The unit has signed an agreement with other property developers, PT Puradelta Lestari Tbk (IDX: DMAS) and PT HK Realtindo to develop the area in the Jakarta-Cikampek South Toll Road Corridor.
According to director of Jasa Marga Adrian Priohutomo, the three companies aimed to develop a property business in Sentul, Bogor, with a potential development area of approximately 120 hectares.
In addition, the companies planned to develop a property area in other toll road corridors such as the Pandaan-Malang Toll Road corridor in East Java, Depok-Antasari Toll Road in West Java, and other potential corridors.
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