JAKARTA (TheInsiderStories) – Infrastructure company, PT Nusantara Infrastructure Tbk (IDX: META) will strengthen the infrastructure business by allocated capital expenditure Rp2.25 trillion (US$160.71 million) in 2020, said the director as reported by local media. The funds will use for the completion of existing infrastructure and new projects.
Danni Hasan, director of META explained, most of the capital expenditure was to continue the Pettarani Toll Road project in Makassar, South Sulawesi. Beside rely on loan, the company also consider to invite strategic partners for the projects, including the private equity group.
He said, the developer hope to operate this elevated 4.3-kilometer (km) elevated toll road in the third quarter of 2020. In addition, there are three major projects such as, the expansion of the Pondok Aren – Serpong in Tangerang. This toll road is estimated to require an investment of Rp2.5 trillion.
Then, Hasan said, the company is also eyeing a tender for the construction of the Hang Nadim airport in Batam, Riau. The construction of the airport is estimated to cost around Rp5.6 trillion.
Nusantara Infrastructure is the initiator of the Jakarta Outer Ring Road (JORR) section of the Ulujami – Jati Asih section. At present, the company is in the preparation phase of pre-feasibility study.
“The value is quite large around Rp18 trillion,” said the director.
In the nine months (9M) of 2019, the company recorded operating revenues and sales Rp468 billion. The company’ EBITDA also increased to Rp279 billion until the third quarter of 2019, from Rp222 billion in the 9M of 2018.
Recently, Metro Pacific Tollways Corp., owned by Salim Group added its ownership in the toll road company through PT Margautama Nusantara, a subsidiary of META. The acquisition of of 24.98 percent shares worth of $67 million.
Its holding Metro Pacific Investments Corp., (MPIC) is expanding into Indonesia since last year, the home turf of its principal shareholder, Salim Group. Metro Pacific is a Philippine unit of First Pacific, Salim’s Hong Kong-listed investment house.
In Nov. 6, 2017, Metro Pacific had acquired a 47.08 percent stake in META for around $150 million. Nusantara Infrastructure’ portfolio covers toll roads, ports, water, energy and telecommunications sectors in which Metro Pacific operates, except for port operations. Metro Pacific will focus on developing the company’ tollway business.
Currently, META operates a total 34.47 kilometers of toll roads, which connect to an airport, a seaport and business districts. MTPC, meanwhile, runs 192km of toll roads in the main island of Luzon, and has proposed new projects elsewhere in the country.
Metro Pacific’ chairman Manuel Pangilinan, said he is aiming to bring Metro Pacific’ infrastructure expertise to the rest of Southeast Asia. The conglomerate has previously acquired shares in Thai and Vietnamese toll road companies.
Before acquired by MPIC, in September 2017, Rajawali sold 21 percent of Nusantara Infrastructure or 3.2 billion shares, for Rp864 billion to local investor Matahari Kapital Indonesia (MKI). The purchase of META’s shares was concluded through BCA Sekuritas brokerage, at Rp270 per share.
On Nov. 3, MPIC indirectly acquired 6.6 billion shares or equivalent to 43.3 per cent of Nusantara Infrastructure shares from MKI.
MTPC and META has commited to allocate around $400 million to invest in Indonesia’s toll road infrastructure projects in 2018-2019, taking part in the government’s drive to develop various infrastructure projects in the country.
Muhammad Ramdani Basri, META’ CEO stated that this plan is part of Nusantara Infrastructure commitment as the private sector to actively contribute in accelerating the infrastructure development in Indonesia, without relying on State Budget.
Since it established, Nusantara Infrastructure has collaborated with various strategic partners in expanding the business such as Cap Asia, Providence Equity, as well as Nexco and Jexway which are among the leading tollway operators in Japan.
The company has once again gained the trust from international strategic partner by demonstrating the performance and the company’s positive outlook to further strengthen its business way into the future, especially in developing infrastructure in Indonesia.
Established in 2006, Nusantara Infrastructure as an integrated infrastructure company in Indonesia which started its first development project in the toll road sector and has expanded its portfolio into ports, energy, water and telecommunication towers.
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