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Jakarta Post

Hong Kong investors to buy two Java toll roads

  • News Desk

    The Jakarta Post

Jakarta   /   Fri, July 12, 2019   /   03:35 pm
Hong Kong investors to buy two Java toll roads A vehicle passes along the new Surakarta-Kertosono toll road before its official opening. (JP/Ganug Nugroho Adi)

Toll road developer PT Waskita Toll Road (WTR), a subsidiary of state-owned construction company PT Waskita Karya, is close to selling two toll roads in East Java and Central Java --   Surakarta-Ngawi and Ngawi-Kertosono – to Hong Kong investors.

“We are now in the process of selling [the toll roads]. It is [close to a deal],” said WTR president director Herwidiakto on Thursday as quoted by kompas.com.

He added that the two toll roads would be sold to one consortium in the Chinese territory but declined to mention the name.

He said the company had to sell the roads to foreign investors because negations with domestic investors had failed to bring about an agreement, as the offer was too low.

Previously, Waskita Karya president director I Gusti Ngurah Putra had announced that the two toll roads on offer were part of five toll roads the company sought to sell this year, the three others being Kanji-Pejagan, Pejagan-Pemalang and Pasuruan-Probolinggo.

WTR has a 40 percent stake in both the Surakarta-Ngawi and the Ngawi-Kertosono toll roads.

Meanwhile, Indonesia Toll Road Authority (BPJT) head Danang Parikesit said WTR had sought permission from the BPJT to sell the two toll roads to Hong Kong investors. However, he stressed that any change of toll road ownership should be agreed by the Public Works and Housing Ministry.

Danang confirmed that the company could sell its toll roads to foreign investors, because infrastructure was not included in the negative investment list, which prohibits or limits foreign ownership in certain industries. (bbn)