Working on a new toll road, Jasa Marga prepares Rp10 trillion capex
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 - Garap jalan tol baru, Jasa Marga siapkan capex Rp10 triliun
31 January 2023
By: Muawwan Daelami
Jakarta - PT Jasa Marga (Persero) Tbk (JSMR) is allocating a capital expenditure (capex) of around Rp8-10 trillion this year. That fantastic capex is prepared by the company to carry out land acquisitions and construct four toll road segments.
Based on the research report of Trimegah Sekurtias quoted on Monday (30/1/2023), Jasa Marga’s 2023 capex is larger compared to last year’s that reached Rp4-5 trillion due to the company’s plan to construct several new projects, such as Yogyakarta-Bawen and Probolinggo-Banyuwangi. However, that amount is still lower the average capex per year from 2017-2020 that reached Rp17-20 trillion.
Jasa Marga Corporate Communication and Community Development Group Head Lisye Octaviana is reluctant to mention the company’s capex amount this year. She only stated that the company had several projects that were still in construction, namely Jakarta-Cikampek II South-Yogyakarta-Bawen, Solo-Yogyakarta-YIA Kulonprogo, and Probolinggo-Banyuwangi.
“In managing the new toll road projects that are set to be completed gradually from 2022 to 2025, Jasa Marga is committed to reaching the target as optimally as possible and to continuously controlling toll road construction activities by carrying out the construction in stages,” Lisye explained when asked for a confirmation by Investor Daily.
Regarding that matter, Lisye said that the capex allocated in 2023, 2024, and the following years depended on the progress of the land acquisitions and the construction of the four toll road segments. Meanwhile, the land acquisition progress will rely on the government’s budget allocation as the land acquisition process is the responsibility of the government.
She said that the four toll road segments were national strategic projects (PSNs). In detail, Jakarta-Cikampek II South toll road spanning 36.4 km is built using the public-private partnership (PPP) scheme with an investment value of Rp13.3 trillion.
Then, Yogyakarta-bawen toll segment spanning 71 km is built with an investment value of Rp12.1 trillion, Solo-Yogayakarta-YIA Kulonprogo toll segment spanning 40 km has an investment value of Rp16 trillion, and Probolinggo-Banyuwangi toll segment spanning 170.4 km has an investment value of Rp11.7 trillion.
Trimegah Sekuritas Analyst Kharel Devin Fielim stated that the company needed an investment of Rp9 trillion per year from 2023-2027 to build toll roads spanning 554 km. That capex prediction has the potential to decrease in line with the government’s plan to re-tender Gedebage-Tasikmalaya-Cilacap (Getaci) toll road project.
Jasa Marga that is the consortium lead that owns 32.5% of the shares does not approve of the project’s value.
Trimegah recorded that the company had toll road projects worth Rp68 trillion spanning 554 km. The construction of most of the toll roads is set to be completed in 2024.
