Officially holding a 45-year concession: Nusantara Infrastructure looks for funding of Rp14.9tn for JORR E
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 - Resmi pegang konsesi 45 tahun: Nusantara Infrastructure cari pendanaan JORR E Rp14,9 T
13 October 2023
By: Eva Fitriani
Jakarta - PT Nusantara Infrastructure Tbk (META) through PT Jakarta Metro Ekspressway or JKTMetro will look for an external funding of Rp14.91 trillion to finance Cikunir-Ulujami Jakarta Outer Ring Road Elevated (JORR E) that costs Rp21.3 trillion.
The step is in line with the appointment of JKTMetro as the holder of the 45-year concession of the elevated toll road that spans 21.6 km that connects Jati Asih (Bekasi) to Ulujami (South Jakarta).
JKTMetro is a joint venture that was established by Nusantara Infrastructure through its subsidiaries, namely PT Marga Metro Nusantara (MMN), PT Adhi Karya Tbk (ADHI), and PT Acset Indonusa Tbk (ACST). MMN owns 85% of JKTMetro’s shares, ADHI owns 10%, and ACST owns 5%.
Nusantara Infrastructure Corporate Secretary Dahlia Evawani said that the construction of JORR E would cost up to Rp21.3 trillion. “Around 30% will be funded by equities and the rest will be funded by debts,” he said in his official statement on Thursday (12/10/2023).
Dahlia continued that Nusantara Infrastructure, which is the majority shareholder of JKTMetro, would contribute by up to Rp3.79 trillion. “Based on the transaction structure, the total contribution of Nusantara Infrastructure to JKTMetro and JORR E will reach around US$241.95 million,” Dahlia said.
According to Dahlia, Cikunir-Ulujami JORR E is a 2x2 elevated toll road that is constructed on top of Jakarta Outer Ring Road 1 (JORR-1). Hence, JORR-E is expected to be a part of the toll road network that becomes the mobility backbone of Greater Jakarta.
The elevated toll road is also expected to reduce traffic congestion on JORR-1, improve services, and reduce the average travel time on JORR-1 by increasing its capacity and providing an alternative long-distance route for drivers who are coming from and going to the airport.
Signing the agreement
On 11 October 2023, Dahlia said that the company through JKTMetro has signed the toll road concession agreement (PPJT) on Cikunir-Ulujami JORR E with the government. The Indonesian government is granting an exclusive toll road business right to JKTMetro for 45 years, which includes the construction time. The right includes operating and managing JORR E as well as collecting toll road tariff from users.
The PPJT does not transfer the toll road ownership to JKTMetro, but it allows JKTMetro to carry out toll road business during the concession period. The starting tariff is set at a minimum of Rp25,500.
Dahlia affirmed that the PPJT set a specific standard that must be met by JKTMetro in operating and maintaining the toll road, which includes its safety, maintenance, and management aspects.
“Based on the PPJT, JKTMetro will also be responsible for the toll road’s business, which includes funding, land procurement, technical planning, construction, operation, and maintenance for the toll road,” she revealed.
PT Nusantara Infrastructure Tbk President Director Ramdani Basri appreciates BPJT’s decision to entrust the company and other consortium members to build sustainable infrastructure through a strategic project in Jakarta. “We hope that the project can provide a beneficial prospect for subsidiaries in the future,” Ramdani said.
Capital injection
Meanwhile, META Director Danni Hasan revealed that shareholders would invest in Cikunir-Ulujami JORR E. “As a public company, we must enforce equality. The mechanism can be rights issue or other instruments. However, whenever the major project starts, we can still achieve capital gain,” he said.
According to Danni, META is participating in the JORR project as the company believes that toll road assets in urban areas have a resilient economic aspect. Moreover, demand in urban areas is high thanks to the population. “I think that Indonesia’s urban areas already surpass 50%. So, the cities must be developed,” he stated.
Hence, Danni said that, for now, the company would still rely on toll road development and operation, especially in cities. However, META also has other business lines besides toll road business, such as water treatment plants, ports, renewable energy, and telecommunications.
