Salim Group's major move in the toll road business
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 - Langkah besar Grup Salim di bisnis jalan tol
17 January 2025
By Eva Fitriani
The significant profit potential in the toll road business is prompting major national conglomerates, such as the Salim Group, to make substantial investments in the sector. Following their acquisition of shares in PT Nusantara Infrastructure Tbk (META), the Mohammed Bin Zayed (MBZ) elevated toll road, and PT Jasamarga Transjawa Tol (JTT), the Salim Group is reportedly interested in acquiring shares of PT Citra Marga Nusaphala Persada Tbk (CMNP) as well. Analysts believe that CMNP will be a profitable investment for the Salim Group due to its high growth prospects.
"Even though the acquisition of META and the MBZ toll road has strengthened its portfolio, the Salim Group still has an opportunity to become a major player in the industry. The acquisition of CMNP shares can be a strategic step to reinforce its dominance. Salim will continue to seek opportunities in the sector, particularly from toll roads with high traffic prospects and significant growth potential," Stocknow.id Founder Hendra Wardana told Investor Daily on Thursday (16/1/2025).
Hendra believes that the toll road business offers a promising long-term outlook, driven by the increasing demand for infrastructure due to economic growth and urbanisation. It is not surprising that large conglomerates, such as the Salim Group, are aggressively expanding into the sector.
"Toll roads not only promise sustainable revenue from tariffs but also positively impact related sectors, such as property and logistics. This enhances their attractiveness to major investors. The acquisition of CMNP by the Salim Group underscores the appeal of the toll road business in Indonesia," he stated.
Currently, CMNP owns six toll road concessions, including the Jakarta Intra Urban Toll Road (JIUT), which has one of the highest traffic volumes in Indonesia. These concessions include the Antasari-Salabenda, Bogor Ring Road, Soroja, Cisumdawu, and Waru-Juanda segments.
Hendra believes that the Salim Group's aggressive move to acquire shares in Nusantara Infrastructure, the MBZ elevated toll road, and the Trans-Java Toll Road demonstrates its commitment to strengthening its position in the toll road industry. The contribution of this business to the group’s revenue is expected to be quite significant, especially with stable traffic volumes.
"In terms of funding, the Salim Group should have sufficient capacity to finance new acquisitions. With an extensive business network and access to various financing sources, it is well-positioned to continue expanding in the toll road sector," Hendra stated.
He mentioned that acquisition opportunities are increasingly available with state-owned enterprise (SOE) issuers, such as PT Jasa Marga Tbk (JSMR), PT PP Tbk (PTPP), and PT Waskita Karya Tbk (WSKT), planning to sell their shares in various toll segments. "This can be a golden opportunity for the Salim Group to expand its portfolio and strengthen its position in the competitive toll road industry in Indonesia," he revealed.
Promises big opportunities
Infovesta Kapital Advisori Investment Analyst Ekky Topan stated that the toll road business is appealing to investors seeking stable revenue, particularly with the increasing traffic volume in Indonesia each year.
Additionally, toll roads are part of national strategic projects that not only offer significant opportunities but are also guaranteed in terms of regulations and government policies.
"The expansion undertaken by the Salim Group into the toll road sector is a suitable strategy due to the sector's stable long-term growth potential," he stated.
In terms of its position, according to Topan, the Salim Group has yet to become a major player in the toll road industry, which is still dominated by key players such as Jasa Marga. However, with the acquisition of META and the MBZ elevated toll road, the Salim Group is demonstrating its commitment to being active in the sector. Additionally, the Salim Group has strong funding capacity both internally and externally, allowing it room to acquire other toll roads in the future.
According to Topan, the plan of SOE issuers, such as JSMR, PTPP, and WSKT, to sell their ownership in several toll roads presents a golden opportunity for the Salim Group to expand its portfolio. With SOE issuers restructuring their finances, the Salim Group has the potential to acquire strategic toll road assets at more competitive valuations.
"If this opportunity is seized effectively, the Salim Group's position in the toll road industry will be strengthened, significantly contributing to its revenue growth in the future," he stated.
Mirae Asset Sekuritas Senior Market Chartist Nafan Aji Gusta Utama stated that acquisitions could be a viable option for the Salim Group to expand its toll road business. "If they want to become a major player in the toll road industry, they must expand their business, such as by acquiring toll roads," he stated.
Management’s statement
Regarding the acquisition of CMNP by the Salim Group, the Indonesia Stock Exchange (IDX) has requested clarification from the toll road issuer. In his response, CMNP Corporate Secretary Hasyim revealed that, to date, the company has not received any notification or correspondence from shareholders or the Salim Group regarding plans to change the majority shareholder of the company.
"Besides what we have stated, there is currently no information or significant events that could affect the sustainability and stock price of the company," Hasyim said in his official statement on Thursday (16/1/2025).
Currently, the ultimate beneficiary of CMNP is the conglomerate Jusuf Hamka. Over the past week, CMNP shares have surged by 103% to Rp2,950.
The news of the Salim Group acquiring CMNP shares continues to spread after the Depok-Antasari toll road operator held an extraordinary general meeting of shareholders on 30 December 2024. The decision was made to approve the revamp of the company’s management and accept the resignations of Feisal Hamka as the company’s president commissioner, Olivia Allan as the company’s independent commissioner, and Fitria Yusuf as the company’s president director.
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