Delayed implementation of contractually agreed new toll tariffs will likely impact on the long-term appetite of potential investors, and in the short term hit the revenue of state toll operator PT Jasa Marga , officials say.
"It will bring bad implications for other toll road investors as they will rethink to build new toll roads in the country if we cannot comply with tariff increases as stipulated under contracts," Secretary to the State Minister for State Enterprises Said Didu told reporters late Friday.
He said that investors would put certainty above all else before investing.
"In other countries, the government could be sued by the companies if they are in breach of a contract," he said.
Jasa Marga had planned to raise toll road rates by an average of 15 percent starting at the beginning of September, but the plan has been put on hold by the regulator, with the new tariffs likely to be put in place after the Idul Fitri holidays, which traditionally is marked by the massive exodus of Jakartans to their home areas all over the country.
The regulator said the new tariff delay was meant to avoid putting more burdens on the people at the time of the celebration of Idul Fitri.
The new rates were to be applied to 11 toll routes including the Jagorawi (Jakarta-Bogor-Ciawi) and the Cipularang (Cikampek-Purwakarta-Padalarang) routes.
Jasa Marga currently operates 13 toll roads.
Under existing contracts, toll road operators are allowed to increase their rates every two years. The new tariff adjustments are based on estimated cumulative inflation between August 2007 and August 2009.
The new rate plan was reviewed and approved by the Indonesian Toll Road Authority (BPJT), an agency set up under the Public Works Ministry in 2005.
Okke Marlina, Jasa Marga corporate secretary, confirmed Sunday that the new tariff was delayed but did not know how long it would take to bring in the new rates.
"I don't know until when, but hopefully it will not be long," Okke said, adding that the delay would influence the company's performance.
Okke however would not go into details about the company's potential financial losses due to the delay.
"We expect the government will inform us when they will agree to start the new tariff, so we can recalculate our targets," Okke said.
"Actually, our new tariff is not so high and it will not significant influence inflation," she said.
Meanwhile Jasa Marga is now trying to finish several new routes that would open for the public before Idul Fitri, which falls on Sept. 21, in order to provide road services for homebound travelers. (naf)
