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Cikampek elevated toll road gets financial backing
State-owned toll road operator Jasa Marga, through its subsidiary Jasamarga Jalanlayang Cikampek (JJC), has secured financial support worth Rp 11
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tate-owned toll road operator Jasa Marga, through its subsidiary Jasamarga Jalanlayang Cikampek (JJC), has secured financial support worth Rp 11.3 trillion (US$780.4 million) in syndicated loans to build the Jakarta-Cikampek II elevated toll road, the biggest ever disbursed for a toll road project.
At least 16 conventional and Islamic banks were involved in the loan syndication, which has a duration of 15 years and 12 years grace period.
State-owned lenders Bank Mandiri, Bank Negara Indonesia (BNI) and Bank Rakyat Indonesia (BRI), private lenders Bank Central Asia (BCA) and CIMB Niaga, as well as government-backed infrastructure financing firm Sarana Multi Infrastruktur (SMI) acted as joint-mandated lead arrangers and bookrunners for the loan.
The construction of the toll road, which will span 36.4 kilometers between Jakarta and Cikampek, West Java, is expected to be completed in 2019, said JJC president director Djoko Dwijono.
“We have a very strict construction period,” he said in Jakarta recently, adding that the construction progress had reached 40 percent of its target so far.
Construction started in March last year with a total investment estimated to reach Rp 16.2 trillion.
Djoko said the progress was possible to achieve as the company had applied a scheme called contractor prefinancing (CPF), in which contractors pay for the construction first and reimburse the funds later.
The company has to build the elevated toll road project among the existing Jakarta-Cikampek toll road, and alongside two major infrastructure projects, namely the Greater Jakarta light rapid transit (LRT) and the Indonesia-China joint high-speed railway project from Jakarta to Bandung, West Java.
“It’s a challenge in itself to synchronize [our project] with those projects,” Djoko said.
The loan for the Jakarta-Cikampek II elevated toll road was the second major financial support Jasa Marga received this year after the latest loan syndication deal of Rp 3.3 trillion for its subsidiary Marga Trans Nusantara (MTN) to build the Serpong-Kunciran toll road, also in the Greater Jakarta area.
Meanwhile, Indonesia Toll Road Authority (BPJT) head Herry Trisaputra Zuna expected that the financial support for the elevated toll road would help JJC reach its target of completion by March 2019.
Herry said the existing Jakarta-Cikampek toll road was congested, with 70,000 to 100,000 vehicles passing daily.
Jasa Marga has announced that it is also gearing up to build a southern part of the Jakarta-Cikampek toll road this year to further reduce congestion.
It is currently in the bidding process for the construction, with the project slated to be wrapped up by 2021.
Jasa Marga president director Desi Arryani said the company expected to build a total of 300 km more of toll road by the end of 2018, on top of the newly built 107-km toll road in the first seven months of the year.
“We will keep on delivering new toll roads to operate, while also maintaining operational performance,” she said.
Jasa Marga booked Rp 4.7 trillion in revenue as of June this year, a subtle 4.4 percent increase from Rp 4.5 trillion last year.
Its profit increased slightly by 2.9 percent to Rp 1.04 trillion in the first half this year, from Rp 1.01 trillion in the same period of 2017.
