TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Pelindo to divest toll road stakes to reduce debt
The state-owned port operator entered the toll road business in 2015 to ensure port access, without any intention to keep them in the long run.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Heavy lifting: Containers are moved at Tanjung Priok seaport in North Jakarta on Nov. 15, 2022. (Antara/Muhammad Adimaja)
S
tate-owned seaport operator PT Pelabuhan Indonesia (Pelindo) is set to sell 65 percent of its stakes in the Cibitung-Cilincing toll road (JTCC) to reduce its outstanding debt.
However, the firm refused to disclose the potential buyer for the deal.
“We hope to conclude the divestment of the toll road [shares] this year, so that we can reduce our debt by Rp 8 trillion [US$489 million],” Pelindo president director Arif Suhartono said in front of House of Representatives Commission VI, which oversees state-owned enterprises (SOEs), on Wednesday.
Pelindo is the entity resulting from a merger between what used to be four state-owned port operators, Pelindo I, II, III and IV, in October 2021, making Pelindo one of the world’s largest container terminal operators.
Right after the merger, the firm had Rp 50.9 trillion in debt outstanding, which was reduced to Rp 42.87 trillion by the end of last year. With the sale of JTCC’s shares, Pelindo is expected to further reduce its debt to Rp 41.93 trillion.
Pelindo entered the toll road businesses in 2015 to ensure port access. The JTCC was built by and is currently operated by companies under Pelindo subsidiary PT Pelindo Solusi Logistik (SPSL).
“We only want to ensure that the road construction is done. After that, we have no intention of holding onto it in the future, so we will let it go,” Arif explained.
