Nusantara Infrastructure eyes Rp20tn toll roads project
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 - Nusantara Infrastructure Incar Proyek Jalan Tol Rp20 Triliun
23 September 2021
Jakarta – PT Nusantara Infrastructure Tbk (META), through its subsidiary PT Marga Metro Nusantara (MMN), is targeting the unsolicited toll road construction project Jakarta Outer Ring Road (JORR) Elevated Cikunir-Ulujami worth Rp20.05 trillion. This action is in line with the company’s focus to construct toll roads in urban areas.
“We are currently participating in the unsolicited project JORR Elevated CIkunir-Ulujami that has an investment value 10 times higher than AP Elevated Toll Road Pettarani Makassar worth Rp2.2 trillion,” PT Marga Utama Nusantara (MUN) President Director, Danni Hasan, said recently. MUN is also a subsidiary of Nusantara Infrastructure.
Based on the data of Toll Road Regulatory Agency (BPJT) of the PUPR (Public Works and Public Housing) Ministry, Marga Metro Nusantara has passed the prequalification stage with other consortiums, namely PT Adhi Karga Tbk (ADHI) and PT Acset Indonusa Tbk (ACST). Next, companies that have passed the prequalification stage will participate in the tender process of JORR Elevated Cikunir-Ulujami.
Danni explained that Metro Nusantara was participating in the toll road project spanning 21.5 km as the company believes that urbanisation in Indonesia is growing by more than 50%, on top of the urban location with promising economic and requirement aspects. Hence, urban areas must be continuously developed.
In running its business, his company remains careful, but they are also brave. Besides urban areas, the company is also brave enough to develop its business outside Java, such as in Sulawesi, through AP Elevated Toll Road Pettarani Makassar operated by PT Makassar Metro Network (MMN), Nusantara Infrastructure’s sub-subsidiary.
“Simple, if we invest 1 Rupiah in Java rather than in Sulawesi or Sumatra, our income will surely be higher in Java. However, we cannot be selfish as the company must contribute to the state. So, we must also invest not only in Jakarta, but also in other regions,” he stated.
Even through revenue outside of Java is relatively lower and the investment is more expensive, the company’s bravery to invest outside of Java will make investments balanced. Meanwhile, the company is investing in Java, especially in Jakarta, as Nusantara Infrastructure Group sees that road distribution in Jakarta is lower than its population growth.
“Jakarta is constructed using the 1972 master plan with a population of 5 million people. Now, millions of people are in Jakarta. The population is increasing, but the number of roads remain the same. The same goes for the number of public transportations that is not increasing,” Danni said.
Besides focusing on the toll road business line, Nusantara Infrastructure Group is also working on water treatment plant, port, renewable energy, and telecommunications sectors. Every strategic business sector is managed by a subholding.
Nusantara Infrastructure is a public company with 75% of its shares owned by Metro Pacific Tollways Corporation (MPTC), one of the members of Metro Pacific Investment Corporation, subsidiary of First Pacific Co Ltd, Salim Group’s work unit.
