Hutama Karya toll road acquisition: INA spends Rp12.5 trillion
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.
Bisnis Indonesia - Akuisisi tol Hutama Karya: INA rogoh Rp12.5 trillion
6 July 2023
By: Affifah Rhamah Nurdifa
Jakarta - Indonesia Investment Authority (INA) is spending Rp12.5 trillion to acquire two Trans-Sumatra Toll Road (JTTS) segments from PT Hutama Karya (Persero), namely Medan-Binjai and Bakauheni-Terbanggi Besar toll segments.
The corporate action is carried out through INA’s subsidiary, PT Swarna Investasi Indonesia (Swarna). The transaction is supported by Rothschild as INA’s financial advisor.
INA Chief Executive Officer Ridha Wirakusumah said that his party believed in the potential of toll roads in Sumatra and the management of Hutama Karya that is reckoned to be excellent.
“The investment also opens opportunities for domestic and international investors to participate in infrastructure construction in Indonesia that has an appropriate return value compared to the investment risk,” Ridha said in his official statement on Wednesday (5/7).
Ridha explained that this cooperation was established to support Hutama Karya to continue other infrastructure construction programmes, especially to complete Trans-Sumatra projects.
“It is crucial as it will support the people’s mobility and the public’s economy in Sumatra,” he stated.
The investment is the commitment of INA and Hutama Karya to support the government that prioritises connectivity in a country that consist of 17,000 islands.
Ridha believes that JTTS, as a vital infrastructure project, plays a key role in boosting equitable economy in Indonesia, as well as in Sumatra that has more than 58 million people and contributed 21.70% to the GDP in 2021.
Bakauheni-Terbanggi Besar toll segment is one of the longest toll segments in Indonesia, while Medan-Binjai toll segment is the main infrastructure that will accelerate socioeconomic development in Sumatra and its surroundings through the plan to develop the logistics network.
The completion of the investment transaction between INA and Hutama Karya will also improve services and trigger the development of other toll segment
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