JAKARTA (TheInsiderStories) - Indonesia state-owned construction company PT Waskita Karya Tbk (IDX: WSKT) is seeking to raise Rp 10 trillion ($699.30 million) funds from capital market and bank loana in order to finance the construction of 12 toll roads in 2016.
The company plans to float its unit share PT Waskita Beton Precast through Initial Public Offering (IPO), issue rupiah bonds and seek bank loans to finance the projects.
Chief executive of Waskita Muhammad Choliq, said it would revive its plan to issue Rp 1.5 trillion in bonds next month and float Waskita Beton Precast shares, aiming at generating Rp 4 trillion fresh funds through IPO early next year. Waskita plans to list up to 35 percent of its unit shares but this depends on market condition.
The toll road projects won by Waskita include Depok-Antasari in the Greater Jakarta area, Kuala Namu-Tebing Tinggi in North Sumatra and Solo-Ngawi-Kertosono in Central and East Java.
State toll-road contractor PT Hutama Karya and Waskita Karya have the duties to develop 2,700-kilometer Trans Sumatera with total investment around Rp 27 trillion for four sections and Trans Java toll road projects with total costs of Rp 13 trillion. Hutama Karya has received capital injection Rp3.6 trillion from the government’s State budget of 2015 while Waskita Rp 2 trillion.
The other toll road operator & developer PT Jasa Marga Tbk (IDX: JSMR) plans to build toll road with total length of 61 kilometers mostly on Java Island. In 2015, Jasa Marga will operate three new corridors on Java island. With the capital injection, the company is able to raise funds from rights issue at least Rp1.6 trillion.
The construction company PT Wijaya Karya Tbk (IDX: WIKA) has been appointed to lead the High Speed Transportation development in collaboration with investors. The project is predicted to require investment of at least $7.5 billion.
Meanwhile PT Adhi Karya Tbk (IDX: ADHI) has broke ground the light rail transit project in East Jakarta with total investment Rp 23 trillion. Adhi Karya, he said, has prepared Rp 2.75 trillion ($193 million) as initial capital of the project. The company plans to launch rights issue to fund its infrastructure projects.
In related development, the Governor of Jakarta provincial government Basuki Tjahaja Purnama said that the other projects to launched by PT Jakarta Propertindo in 2016 will need investment of Rp 50 trillion. The realization of infrastructure projects is considered pivotal to boost the country’s economic growth and it would surge domestic consumption. (*)
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