S

tate-run toll operator Jasa Marga is considering bidding for two toll road operating tenders in the second semester of this year '€” the Manado-Bitung and Balikpapan-Samarinda toll roads.

Jasa Marga president director Adityawarman said on Thursday that his firm would review details of tender documents for Manado-Bitung and Balikpapan-Samarinda toll roads, which will reportedly kick off in the second half of this year.

'€œWe haven'€™t decided which tenders we will bid for in the second semester, but if I'€™m not mistaken Manado-Bitung and Balikpapan-Samarinda tenders will open for bids,'€ he told reporters after a closed door meeting at the State-Owned Enterprises Ministry.

Jasa Marga would look at closely at the potential traffic volume and revenue of operating the toll
roads, once they were launched, he added.

The firm, according to Adityawarman, will also look at whether the government will provide any subsidy during the toll roads'€™ initial periods of operation.

The Manado-Bitung toll road, which will connect North Sulawesi'€™s eastern and western parts to boost the province'€™s economic growth, is expected to start operating in the next three years at an estimated cost of more than Rp 4 trillion (US$298 million).

The toll road will span around 39 kilometers, with 26 km of that being part of the government'€™s portion.

The Balikpapan-Samarinda toll road, meanwhile, will help ease distribution between East Kalimantan'€™s oil city and its capital city.

The 99-km road will cost up to Rp 14.9 trillion, with construction costs alone accounting for Rp 9.6 trillion.

The toll road project is among the government'€™s top 10 prioritized projects, set to open for bidding sometime this year.

The government has previously stated that it will use $1.83 billion of the state'€™s foreign debt to finance toll road developments in a bid to reach its target of 1,000 kms of toll roads by 2019.

Jasa Marga itself has recently secured Rp 2.85 trillion in syndicated loans from state lenders Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia and regional development lender Bank Sumatera Utara.

The loan will be used to finance Jasa Marga'€™s Medan-Kuala Namu-Tebing Tinggi toll road, which is located in Deli Serdang, North Sumatra.

The toll road aims to help spur the province'€™s economy by connecting the Kuala Namu International Airport with surrounding strategic areas.

Jasa Marga has seen a 5.3 percent revenue drop, down to Rp 1.97 trillion in the January-March period of this year from Rp 2.08 trillion during the same period last year.

The firm'€™s net profit, meanwhile, remained at around Rp 762 billion over the period.

The company, which is listed on the Jakarta Stock Exchange under the code JSMR, is also looking to increase its non-toll revenue to around Rp 600 billion this year from Rp 583.2 billion last year.

Jasa Marga'€™s non-toll revenue grew by 14.74 percent year-on-year last year.