Indonesia’s Jasa Marga to Issue Two-Debt Instruments worth US$140M in 2019
The toll road and infrastructure firm, PT Jasa Marga Tbk (IDX: JSMR) targeting to operates 1,292 kilometers of toll roads by 2021 - Photo by the Company

JAKARTA (TheInsiderStories) – The toll road and infrastructure firm, PT Jasa Marga Tbk (IDX: JSMR) targeting to operates 1,292 kilometers (km) of toll roads by 2021. Currently, the builder operated around 1,191 km of toll roads with a total concession length of 1,527 km.

Finance Director, Donny Arsal in virtual conference said, the issuer will add another 27.85 km of toll road from the Jakarta – Cikampek II  toll road construction project in 2021 to along 1,292 km. He added, the operator still pocketed 236 kilometers of toll projects will develop later.

Based on company data, Jasa Marga will add 236 KM toll roads after 2021 which consists of the Bogor Ring Road Section IIIB (2.25 km), Jakarta-Cikampek II Selatan Section I-II (34.15 km), Probolinggo-Banyuwangi Section I-III (172 km), and Ngawi-Kertosono Section V (27.90 km).

Arsal also said, in this year, the developer to operates of 102 km of toll roads consisting of the Pandaan – Malang section V (2.97 km), JORR2 Cinere – Serpong (10.14 km), JORR2 Kunciran – Cengkareng (14.19 km), Balikpapan-Samarinda Sections I and V (33.12 KM), Manado – Bitung (39 km), and Bogor Ring Road Section IIIA (2.65 km).

He continued, Jasa Marga also has operates the Pandaan – Malang toll road Section V since June 6 and the Balikpapan – Samarinda Section II – IV toll road since June 14. MWhile, the Manado – Bitung section 2A toll road has operated functionally since Sept. 30. Until September 2020, the company has the largest toll road market share in Indonesia, around 52 percent, followed by other state-owned toll road operator, PT Hutama Karya, with 23 percent.

Recently, the constructor decided to cut this year’ capital expenditure from initial targets Rp20 trillion to Rp 17.5 trillion (US$1.24 billion). The issuer also delayed some projects as part of the company strategy to maintained the financial balance sheet due to the pandemic.

Arsal conveyed, the use of investment is prioritized for the maintenance of safety and the convenience of the toll roads owned by Jasa Marga. He added, the constructor also postponed the issuing of the sharia asset backed securities and prefers to issues a commercial paper up to Rp 1 trillion.

The notes is similar to a discounted bond with a tenure of one year to enlivening the products published by Bank Indonesia. He explained that the issuance of asset back securities will be reviewed again by the issuer 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.

Jasa Marga is currently 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.

The company is also reviewing 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, Jasa Marga 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.

The toll road producer is currently 70 percent 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 Jasa Marga.

US$1: Rp14,100

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