Jasa Marga obtains funding for Probowangi toll road project worth Rp7.3tn
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 raih pendanaan proyek tol Probowangi Rp7,3 T
22 November 2023
By: Muawwan Daelami
Jakarta - PT Jasa Marga Tbk (JSMR), through its subsidiary PT Jasamarga Probolinggo Banyuwangi (JPB) that is the operator of Probolinggo-Banyuwangi (Probowangi) toll road, has obtained a syndicated loan of Rp7.3 trillion. These funds will be used to construct the Gending-Besuki segment of Probowangi toll road phase I spanning 49.68 km.
The loan obtained by Jasa Marga came from various sources, including state-owned enterprise (SOE) banks that include PT Bank Negara Indonesia Tbk (BBNI) and PT Bank Mandiri Tbk (BMRI), regional banks that include Bank Jatim, Bank Pembangunan Daerah (BPD) Bali, and BPD Papua, and PT Sarana Multi Infrastruktur that is an infrastructure financing institution. In the syndicated loan agreement, BBNI and BMRI will act as joint mandated lead arrangers and bookrunners (JMLAB). Meanwhile, the regional banks will act as syndicated members.
Jasa Marga has received the Rp7.3 trillion syndicated loan with a tenure of 15 years, which will be used to construct Probowangi toll road phase I that includes package 1 (Gending-Keraksaan) spanning 12.88 km, package 2 (Kraksaan-Paiton) spanning 11.20 km, and package 3 (Paiton-Besuki) spanning 25.60 km.
Jasa Marga Business Development Director M. Agus Setiawan who represent the shareholder of PT JPB said that Jasa Marga has an opportunity to cooperate with a group of lenders. This group mostly supported Solo-Yogyakarta-NYIA Kulonprogo toll road project, owned by PT Jasamarga Jogja Solo, in December 2022. “Jasa Marga with PT Brantas Abipraya (Persero) and PT Waskita Toll Road as shareholders of PT JPB hope that the project can be completed excellently from start to finish,” Agus said in his official statement on Tuesday (21/11/2023).
Agus is optimistic about the timely and quality completion of the Probowangi toll road construction. He also hopes the cost will adhere to the planned budget. Furthermore, he assures that good corporate governance (GCG) principles will be implemented to the highest standard.
He continued that the target was set by considering the support from the banks and the financial institutions for the construction of Probowangi toll road. The project is a key component in realising the connectivity of Trans-Java toll road in eastern Java, which is part of sustainable infrastructure development.
Echoing Agus’ sentiment, PT JPB President Director Adi Prasetyanto expressed his gratitude for the trust and the support that creditors have shown towards PT JBP, which is evident in the syndicated loan agreement. “I hope that, with this support, the construction of the toll road can be completed on target with excellent quality,” he added.
On target
Adi noted that the construction of the Probowangi toll road began in February 2023 and is currently on track. As of November 2023, the first phase of the project, which includes the Gending-Besuki segment, has made significant progress. Specifically, package 1 is 31% complete, package 2 is 15% complete, and package 3 is 6% complete.
“In line with the directive of the shareholders, we will oversee all business processes to implement good corporate governance as our commitment to realising the set purpose and target,” Ad said.
When the Gending-Besuki segment of Probowangi toll road phase 1 operates, Adi said that the toll road would be connected to the currently operational Pasuruan-Probolinggo toll road that is managed by PT Waskita Toll Road.
According to Adi, the average daily traffic of Pasuruan-Probolinggo toll road reaches 13,000 vehicles per day. “We are optimistic if it has been connected. The average daily traffic will also go through the Gending-Besuki segment of Probowangi toll road phase 1,” Adi said.
The Gending-Besuki segment of Probowangi tol road phase 1 will have three toll gates, namely Kraksaan Toll Gate, Paiton Toll Gate, and Besuki Toll Gate. It will also have three interchanges, namely Kraksaan Interchange, Paiton Interchange, and Besuki Interchange. Furthermore, it will also be fitted by two rest areas at STA 33+650 on both directions, Probolinggo and Besuki.
Probowangi toll road is divided into seven sections, namely section 1 (Probolinggo-Kraksaan) spanning 12.88 km, section 2 (Kraksaan-Paiton) spanning 11.2 km), section 3 (Paiton-Besuki) spanning 25.6 km, section 4 (Besuki-Situbondo) spanning 42.3 km, section 5 (Situbondo-Asembagus) spanning 16.76 km, section 6 (Asembagus-Bajulmati) spanning 37.45 km), and section 7 (Bajulmati-Ketapang) spanning 29.21 km.
On the other hand, the toll road is a national strategic project (PSN) managed by Jasa Marga through PT JPB. The company owns 94.93% shares of PT PBJ. Meanwhile, PT Brantas Abipraya (Persero) owns 5.00% and PT Waskita Toll Road owns 0.07% of the shares.
