Jasa Marga opens asset recycling options for other toll road sections
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Jasa Marga buka opsi asset recycling ruas tol lain
29 August 2024
By Ghafur Fadilah
Jakarta, ID – PT Jasa Marga Tbk (JSMR) stated that they would consider asset recycling for their toll road segments and those of their subsidiaries to ensure the sustainability of the company’s business. Currently, the company is completing the stock divestment of PT Jasamarga Transjawa Tol (JTT), which is set to be finalised next month.
The asset recycling scheme has been employed as a strategy to utilise and hand over old assets to build new ones. Jasa Marga currently owns 16 toll road concessions covering 1,736 km and operates 1,264 km of toll roads. Specifically, 29 toll road segments are fully operational, two are partially operational, and five are in the land acquisition and construction phases.
“Jasa Marga is very open to conducting asset recycling for various projects, including toll road segments of its subsidiaries. However, Jasa Marga will still maintain its position as the majority shareholder and the controller of JSMR,” Jasa Marga Business Director Reza Febriano said at a live public expose in Jakarta on Wednesday (28/8/2024).
Reza affirmed that asset recycling is the company’s strategic step to optimise its assets and increase its value. This corporate action is intended to ensure the business sustainability of Jasa Marga in the future.
“Asset recycling and other corporate actions will ensure that the results will strengthen the capital structure and guarantee the growth of JSMR. We aim to continuously improve services for road users and innovate to enhance services for the public,” he stated.
JTT divestment
Meanwhile, regarding JTT’s divestment, Jasa Marga Corporate Finance and Investor Relations Senior Group Head Haning Pangastuty said that the selling process of some shares of the Trans-Java toll road operator is still ongoing and is set to be completed in September 2024. Divestment is part of the asset optimisation strategy to increase added value for shareholders, while ensuring that Jasa Marga remains the majority shareholder.
The divestment process has reached the signing of the Conditional Share Purchase Agreement (CSPA) document with an international strategic partner consortium that includes the Government of Singapore Investment Corporation (GIC) and Metro Pacific Tollway Corporation (MPTC) from the Philippines. The CSPA was signed on 28 June 2024, but the completion target depends on the fulfilment of the set conditions. “We believe this partnership will not only strengthen Jasa Marga’s position in the domestic toll road market but also provide the financial and operational support required for further expansion,” Haning revealed.
The toll road state-owned enterprise (SOE) issuer will seek approval to divest 35% of JTT’s shares at JSMR’s extraordinary general meeting, scheduled for 18 September.
New toll road project expansion
Besides focusing on divestment, Jasa Marga is also actively targeting new toll road projects as part of its growth strategy. Jasa Marga Business Development Director Agus Setiawan stated that the company is committed to participating in the development of toll road infrastructure in Indonesia. “One of the strategic projects that we are working on is the Bogor-Serpong toll segment, which is part of JORR 3. This will help facilitate the distribution of goods and road users from southern Greater Jakarta to Tangerang,” Agus revealed.
The project was won by Jasa Marga and its partners and is currently in the business entity establishment preparation stage. Jasa Marga is also targeting the completion of several toll segments that are currently under construction. One of the main focuses is the Yogyakarta-Solo toll road. “We are planning to complete the Kartasura-Klaten segment, which spans 22.3 km as part of the Yogyakarta-Solo toll road, by the end of September 2024,” Agus added.
This project has progressed more than 97% and is currently in the feasibility study stage. Agus hopes that the toll road operation can be realised in the third quarter of this year, once all feasibility study stages are completed.
