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ublicly listed toll road operator PT Citra Marga Nusaphala Persada (CMNP) is planning to inject new capital into subsidiary PT Jasa Sarana, which has several big toll road development projects in the near future.

CMNP director Suarmin Tioniwar said that the company wanted to increase its ownership in Jasa Sarana to 15 percent from a current level of around 4 percent.

“The plan is being studied and we are counting on the value of the equity,” Suarmin said on Thursday.

Jasa Sarana was established in 2004 by the West Java provincial government, PT Indec Internusa and CMNP.

One reason behind CMNP’s plan to increase its stake in Jasa Sarana is the subsidiary’s plans to develop the 11-kilometer Soreang-Pasir Koja (Soroja) toll road in Bandung, West Java, and part of the 60-kilometer Cileunyi-Sumedang-Dawuan (Cisumdawu) toll road connecting Bandung and Cirebon, West Java, to serve as the main access road to a planned airport in Kertajati in Bandung, Suarmin said.

Construction of the Soroja toll road is expected to start next year with an estimated investment of Rp 1.2 trillion (US$125 million). Meanwhile, work on the first phase of the Cisumdawu toll road started on Thursday.

CMNP is also planning to acquire 30 percent of Jasa Sarana’s stake in PT Marga Sarana Jabar, which holds a concession to develop an 11-kilometer ring road in Bogor, West Java.

Jasa Sarana currently holds a 45 percent stake in Marga Sarana Jabar, with the remainder held by state-owned PT Jasa Marga.

Suarmin said that the acquisition might cost between Rp 80 billion and Rp 100 billion. “We hope to realize the plan before the end of the first quarter next year,” Suarmin said.

Acquisition of Marga Sarana Jabar would help the company synchronize the Bogor ring road with its Depok-Antasari toll road, according to finance director Indrawan Sumantri.

CMNP, through 62.5-percent-owned subsidiary PT Citra Waspphutowa, is currently working on land acquisition for the 21.5 kilometer Depok-Antasari toll road.

Construction on the road is scheduled to start in April; its first two sections will be finished by late 2013, according to the firm.

CMNP has allocated Rp 1.9 trillion for capital expenditures next year, including Rp 1.2 trillion for the Depok-Antasari toll road, whose third stage development will cost up to Rp 4.77 trillion by its scheduled completion date in 2014.

“We will finance capital expenditures next year through internal cash and funds to be raised from bond issuances,” Indrawan said.

The company is planning to raise up to Rp 1.2 trillion from issuing conventional and Islamic bonds in March, which will use finance plans to acquire Marga Sarana Jabar and inject capital into Jasa Sarana.

The company also has the option, approved by shareholders in August, for a non-preemptive rights issue to raise funds for expansion.

CMNP estimates that it will book Rp 863 billion in revenue by the year’s end, which would be a 7 percent increase compared to last year’s Rp 803 billion.

Despite the planned increase in revenue, Indrawan said that the company’s net profits would likely drop by about 6 percent to Rp 334 billion this year, versus Rp 357 billion last year, due to higher toll road maintenance spending.

The company is expecting to see around a 9 percent increase in revenue to Rp 915 billion next year, while estimating that its net profits will reach Rp 262 billion.

The prediction for lower net profits next year was attributed to higher financial interest as consequence of the issuance of the debt papers.