State toll operator PT Jasa Marga plans to raise up to Rp 1.5 trillion (US$166.5 million) through bond issuance in the second semester of this year, an executive said in Jakarta on Monday.
President director Frans Sunito said Friday that some proceeds from the bond issuance would be used
to pay debts maturing this year and finance the company’s projects.
The company previously announced Rp 3 trillion in capital expenditures this year.
“This year we will acquire two new toll roads; Serpong to Cinere and Cimanggis-Cibitung, worth
Rp 5.4 trillion in total,” Frans said.
The company is in the process of constructing new toll roads, including the Cikampek-Jakarta route, the Bogor Ring Road, the Jakarta Outer Ring Road (JORR) I and JORR II extensions. Other ongoing
projects outside Jakarta include toll roads connecting Semarang to Solo, Solo to Ungaran and Gempol
to Pasuruan.
This year the company plans to begin constructing two toll roads: 14 kilometers of road connecting Semarang-Ungaran, and 2.3 kilometers from Surabaya-Mojokerto.
The company is also planning to venture outside its core expertise, partnering with state-owned housing company PT Pembangunan Perumahan (PP) in acquiring land and developing it into residential and commercial real estate.
“The property area will be near our toll road. We are still undertaking a project feasibility study,” Frans said, adding the property project would require Rp 200 billion in investments, taken from its Capex.
Currently, Jasa Marga operates a total of 13 toll roads with a total length of 530 kilometers accounting for 76 percent of all toll roads in Indonesia.
The company will require Rp 25 trillion in investment for the next four years to construct 250 kilometers of toll roads, Frans said.
Frans said that in the last three months, the company booked Rp 1 trillion in revenue from its target Rp 4.2 trillion in 2010. In 2009, the company noted Rp 3.6 trillion in revenue.
Last year the company managed a total of 916 million transactions for its toll roads, up from 880 million in 2008. Most transactions occurred on only 13 toll roads, mostly in Greater Jakarta, Semarang, Surabaya and Medan.
Jasa Marga booked Rp 992 billion in net profits last year, or up by 41 percent from the previous year. Frans declined to comment on the company’s profit target this year.
The company is also planning to venture outside its core expertise, partnering with state-owned housing company PT PP.
