State-owned enterprise Jasa Marga plans to raise Rp 1 trillion to Rp 2 trillion ($75 million to $150 million) from issuing a collective investment contract backed by the company's toll road revenue. (Antara Photo/Rosa Panggabean)

Jasa Marga Looks to Sell Jakarta, Central Java Toll Assets in 2017


DECEMBER 20, 2016

Jakarta. State-controlled toll operator Jasa Marga plans to sell shares in some of its toll roads for more than Rp 1 trillion ($74.6 million) as part of an effort to raise funds for expansion and pay debt next year.

The company expect to sell 19 percent of the Kebon Jeruk-Penjaringan toll road, or all of its shares in one of the section of Jakarta Outer Ring Road, said Jasa Marga finance director Anggiasari Hindratmo.

Also, the company would offer 10 percent 15 percent shares in Trans Marga Jateng, an operator of a section in Transjava toll road network. Today the company owns 70 percent of Trans Marga Jateng.

Under right of first refusal clauses, Jasa Marga would first offer the shares to its partners in the toll roads, which include Bosowa Group's Nusantara Infrastructure and former New Order minister Siswono Yudo Husodo's Bangun Cipta Sarana in  Kebon Jeruk-Penjaringan toll road and Central Java regional government  in Trans Marga Jateng.

Should the partners refuse to buy the shares, Jasa Marga would sell them to a limited mutual fund or turn them into an asset backed securities, Anggiasari said. The government has been encouraged state-owned infrastructure companies to securitize \ assets in order to tap into repatriated funds under the tax amnesty program.

Besides selling the shares in toll roads subsidiaries, Jasa Marga would issue Rp 6 trillion in bonds and up to Rp 1.7 trillio in a right issue, she added.

Jasa Marga targets to spend Rp 20 trillion in capital expenditure next year, or double that of this year. The toll road operator expects it would start several toll-road sections in 2017, including Bawen-Salatiga, Solo-Ngawi and Ngawi-Kertosono in Central Java.

The company aims to operate 2,000 kilometers of toll road by 2019, from today's 1,261 kilometers, said Jasa Marga president director Desi Arryani.