ASEAN KEY DESTINATIONS
Jasa Marga needs Rp 16 trillion for 2016 capital expenditure
State-owned toll road operator PT Jasa Marga says it needs at least Rp 16 trillion (US$1.2 billion) for capital expenditure in 2016 to finish ongoing toll road projects in the country.
Jasa Marga president director Adityawarman said in Jakarta on Thursday that a total of Rp 40 trillion would be needed for the company to finish the ongoing construction of 13 toll road segments, which are scheduled for completion by 2019.
He said the company was now focusing on the construction of the roads, as the acquisition of land for road construction had mostly been completed. “We need large funds for the future, because we are now focusing on construction work,” Adityawarman told reporters on Thursday on the sidelines of the State-Owned Enterprise Forum in Jakarta.
Around 30 percent of the 2016 capex would be financed from the company’s internal funds, while the remaining 70 percent would come from bank loans, he said, adding that Jasa Marga expected revenue growth of seven to eight percent this year.
When asked about Jasa Marga’s Rp 1.2 trillion in stalled state capital injection (PMN) funds, he said the company aimed to appeal to the House of Representatives’ commission VI, which oversees state companies, in February to appeal for the disbursement of the funds.
“The stalled PMN funds will not hamper our progress in building these projects,” he insisted.
Jasa Marga is constructing and managing some sections of the Trans-Java toll road, which is slated to finish in 2017, as well as some sections of the Trans-Sumatra toll road, slated to finish in 2018, and other toll road projects in Balikpapan, Manado, Malang, Semarang and Jakarta.
Adityawarman added that most of the Trans-Java toll road was now under construction, specifically in the part connecting Central Java and East Java. As land acquisition efforts had been mostly cleared for the project, he expressed optimism that the Trans-Java toll road is on schedule.
“Three of the Trans-Java toll road segments are coming along nicely. The Bawean-Salatiga route is 60 percent complete, while we only need to construct the remaining 45 km of the Salatiga-Surakarta route. The Surakarta-Kertosono [East Java] route’s land acquisition is 83 percent complete,” he said.
He added that once 95 percent of land acquisition efforts had been completed, it would be easier for Jasa Marga and state-owned building firm PT Waskita Karya to carry on with the physical construction.
Jasa Marga aims to build more than 1,000 kilometers of toll roads by 2018. The company needs to construct another 460 kilometers to achieve the target. Adityawarman said Jasa Marga had operated 590 kilometers of toll road since beginning operations in 1979.
Jasa Marga’s first-half revenue dropped by around 9 percent from Rp 4.48 trillion in 2014 to Rp 4.09 trillion in 2015. Net profits, meanwhile, slipped by 17 percent year-on-year to Rp 670.03 billion, as financing costs rose by 19 percent to Rp 665.44 billion in the first half.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below