“Our company will use the money from the sales to pay debts to shareholders and finance future toll road development to help achieve the government's target to build 2,500 kilometers of new toll roads [over the next five years],” Waskita Toll Road president director Herwidiakto told reporters after signing the agreement in Jakarta on Wednesday.

Under the agreement, Waskita Toll Road, a subsidiary of state-owned construction company PT Waskita Karya, agreed to sell its 40 percent stake in the 90-km toll road segment connecting Surakarta in Central Java to Ngawi in East Java, which is managed by PT Jasamarga Solo Ngawi, and its 40 percent stake in an 87-km segment connecting Ngawi and Kertosono in East Java, which is managed by PT Jasamarga Ngawi Kertosono Kediri.

Another 40 percent of the shares in each of the two segments is owned by PT Jasa Marga and the other 20 percent is held by PT Lintas Marga Jawa.

Kings Key Limited, a subsidiary of Hong-Kong-based property investment company Road King Infrastructure Limited, will receive concessions for both toll road segments for the next 50 years through the deal. The Indonesian government will remain the owner of the toll road assets.

“We will use some of the funds [from the divestment] to finance the development of a toll bridge in Balikpapan bay [in East Kalimantan] this year,” he said.

Herwidiakto said his company would sell its stakes in four other toll road segments next year. Of the four segments, three were part of the Trans-Java toll roads, namely the Pejagan-Pemalang segment in Central Java, the Pasuruan-Probolinggo segment in East Java and a segment connecting Kanci in Cirebon, West Java, to Pejagan in Central Java.

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