S

tate-owned highway company PT Jasa Marga has signed a deal to buy a 21.24 percent stake in PT Translingkar Kita Jaya, the operator of the Cinere–Jagorawi toll road.

In an announcement published on Wednesday, Jasa Marga said that it had signed the acquisition agreement on Monday.

The company acquired a 18.14 percent stake, or 76,208 shares, from state-owned construction frim PT Waskita Karya, and acquired another 3.1 percent, or 13.000 shares, from its 99 percent subsidiary, PT Jalantol Lingkarluar Jakarta.

With a valuation of Rp 1.55 million per share, the acquisition is worth Rp 137.93 billion in total.

“Funds for the acquisition were sourced internally,” Jasa Marga finance director Reynaldi Hermansjah said on Wednesday. According to its financial report, Jasa Marga has Rp 4.14 trillion in cash and cash-equivalents as of the end of June.

Translingkar is a consortium founded by four companies: PT Transindo Karya Investama — a subsidiary of conglomerate Kompas Gramedia; PT Kopnatel Jaya; Waskita, and Jalantol.

Jasa Marga’s acquisition does not affect the ownership of Transindo and Kopnatel, holding a 78.01 percent and 0.75 percent stake in Translingkar respectively.

The 14.64 kilometer Cinere–Jagorawi road is divided into three sections. The first section is 3.7 kilometers from Jagorawi to Raya Bogor, the second is 5.5 kilometers from Raya Bogor to Kukusan, and the third is 5.4 kilometers from Kukusan to Cinere.

The construction of the first section began in August 2010 and concluded in August 2011. Construction of the second section began in July 2011 and concluded in July 2012. According to an announcement, Translingkar is expecting to open the second section for public use within this month.

Meanwhile, construction of the third section began in April this year, and is scheduled to be completed in March 2013.

The Cinere–Jagorawi road is scheduled to be fully operational by May next year, with the cost of the project coming in at Rp 1.1 trillion in total.

Jasa Marga said that the Cinere–Jagorawi road was expected to accommodate up to 33,215 vehicles per day by the end of this year. That figure is expected to increase to 39,194 vehicles by 2013 and 47,816 vehicles by 2014.

Jasa Marga currently operates 545 kilometers of toll roads, mostly in Java. The company estimates it will have 738 kilometers of toll roads by 2014.

“The company, as the biggest toll road operator in Indonesia, is required to be expansive, as toll
roads are important infrastructure that supports the country’s economic growth. The acquisition of Translingkar is a part of the company’s plan to maintain sustainable business expansion,”
Jasa Marga said in a written statement.

The company explained that Indonesia’s toll road development is lagging behind neighboring countries such as Malaysia, which currently has around 4,000 kilometers of toll roads. Meanwhile, Indonesia — the largest economy in Southeast Asia — only has around 750 kilometers of toll roads.

Jasa Marga is currently working on several other toll road developments, including Bali toll road, Bogor Ring Road, the Jakarta Outer Ring Road Northside 2 connecting Ulujami and Kebon Jeruk, Semarang–Surakarta and Surabaya–Mojokerto.

Shares in Jasa Marga were unchanged at Rp 5,600 apiece on Wednesday.