Astra expands toll road business
Monday, May 20 2019 - 01:19 AM WIB
IDX-listed well-diversified PT Astra International Tbk through its subsidiary PT Astra Infra has acquired 44.5 percent interest in PT Jasamarga Surabaya Mojokerto (JSM), which holds the 36.3-km Surabaya-Mojokerto toll road concession in East Java Province, as part of expansion of the group’s toll road business.
Bisnis Indonesia reported on Monday that Astra Infra signed on Friday an agreement to acquire 24.2 percent stake in JSM from PT Moeladi, and another 20.3 percent interest from IDX-listed construction firm PT Wijaya Karya Tbk in a transaction worth Rp 1.7 trillion financed through internal funds.
The remaining 55.5 percent interest in JSM is held by state-controlled IDX-listed toll road company PT Jasa Marga Tbk.
The paper quoted Group CEO at Astra Infra, Djap Tet Fa as saying that the JSM acquisition forms part of the company’s expansion strategy this year.
He said that Astra Infra is currently in the process of completing construction of the Serpong-Kunciran toll road project, which is part of the Jakarta Outer Ring Road (JORR) 2 project. “Construction of the Kunciran-Serpong toll road has now reached more than 90 percent and is targeted for completion at the end of this year,” he said.
As such, Astra Infra this year will have a total of six toll road concessions. Aside from Kunciran-Serpong, the other toll road assets are the Tangera-Merak toll road section (72.5-km), Cikopo-Palimanan (116.8-km), Semarang-Solo (72.6-km), Jombang-Mojokerto (40.5-km), and the latest acquired asset the Surabaya-Mojokerto section (36.3-km).
Djap said that the acquisition of the Surabaya-Mojokerto toll road section will expand Astra’s ownership in the Trans-Java toll road to 338.6-km, representing around 30 percent of the total length of the Trans-Java toll road.
He said that Astra Infra is still open to possible acquisition opportunities. (*)