Waskita Karya to build Rp 40t KutaLovina toll road in Bali

Anggi M. Lubis,
The Jakarta Post/Jakarta

Publicly listed construction

firm Waskita Karya is looking to
develop a 125 kilometer toll road
in Bali worth Rp 40 trillion
(US$3.1 billion) in investment, as
a part of the companys aim to
operate 400 kilometers of toll
road by 2018. Waskita Karya
president director M. Choliq told
a
press
conference
on
Wednesday that the state-run
company hoped to start the
project soon.
The toll road project will
connect Kuta, located in the
southern part of Bali, and
Lovina,
in
the
islands
northwestern area. Choliq said
his company was still waiting for
the Bali administration which
Waskita will partner with for the
project to formally submit the
proposal to the Public Works
and Public Housing Ministry.
The toll road itself is
expected
to
conclude
construction in 2018.We expect
to start construction of the toll
road soon and it might take
around three years to complete
the works, he said. As the
project initiator, we will be
granted 10 percent right-tomatch, which means we can win
the tender by offering 10 percent
lower value than our strongest
competitor. Choliq said that
investment needed for the
.

project was estimated to reach

between Rp 35 trillion and Rp 40
trillion. Construction of the toll
road will be divided into four
sections. The first section of the
project, he explained, would be
25.7 kilometers long, connecting
Kuta and Soka through Canggu
and Tanah Lot. The first section
will cost the company around Rp
6-7 trillion in investment.
Choliq said that the Bali toll
road project was expected to
help the company meet its target
of operating 400 kilometers
worth of toll roads by 2018. The
company is working on several
toll road projects, including a 21kilometer toll road that will
connect Depok in West Java to
Antasari in South Jakarta and
57.5-kilometer
PejaganPemalang toll road project in
Central Java. Both of the
projects are slated to commence
operation in 2016.
Meanwhile, a 21-kilometer
toll road, connecting Casablanca
in South Jakarta and Duren Jaya
in Bekasi, is scheduled for
completion
in
2017.
The
company
will
also
start
construction of its MedanKualanamu-Tebing Tinggi project
in North Sumatra next month
that will span 30-kilometers and
will
conclude construction in 2017.

Waskita, which is among the

state-run companies to receive
state capital injection from the
government, is aiming for Rp 53
trillion worth of investment
projects,
mostly
toll
road
projects.
The
investment
projects will be carried out after
the company concludes its Rp 6
trillion rights issue, Rp 3.5 trillion
of which will come from state
capital injection.
Bahana
Securities,
Danareksa
and
Mandiri
Sekuritas have been appointed
as the underwriters for the equity
offering, which is scheduled in
July pending approval from
the Financial Services Authority
(OJK). Waskita pocketed Rp 2.7
trillion worth of new contracts in
the first quarter of 2015, or
around 13 percent of its Rp.20.8
trillion full-year target, which
Choliq said was normal for a
state-run builder that relied on
government
infrastructure
projects, as most of the projects
would only start later this year.
The company, according to
Choliq, booked Rp 1.4 trillion in
revenue in the first quarter, up by
around 40 percent from Rp 1
trillion in the same period last
year. Its first-quarter net profit
reached Rp 11 billion, a 16.67
percent increase year-on-year

Batam toll road project to

address traffic gridlock
Fadli
The Jakarta Post/Batam

The Batam Free Trade Zone Authority (BPK

FTZ) is upbeat over the future of its planned toll
road project it has been included in the Master
Plan for the Acceleration and Expansion of
Indonesian Economic Development (MP3EI).
Director of One-door Services (PTSP) and
BPK FTZ spokesman Dwi Djoko Wiwoho told The
Jakarta Post on Thursday that the 25-kilometer
long toll road, which would connect Hang Nadim
International Airport-Muka Kuning Industrial ZoneBatu Ampar Cargo Port, would address severe
traffic congestion that had disrupted industrial
activities.
The project was initiated in 2010 and
completion was projected for 2016, however, it was
stymied by various problems. The toll road will
stretch 15 km from the container port in Batu
Ampar to Muka Kuning; and 10 km from Muka
Kuning to Hang Nadim airport.
Initially, it was planned that the project would
be put up for tender in 2012, but as it was included
in the MP3EI, it needs a presidential regulation.
We are optimistic the presidential regulation will be
issued before President Susilo Bambang
Yudhoyono ends his term in office [this year], said
Djoko.
Djoko said that the project would cost Rp 1.6
trillion (US$135 million). According to the plan, the
toll road will be fully operational four years after the

tender process begins. BPK FTZ appears to be

serious about working with foreign investors on the
project as it often promotes the project at various
international forums. On Sept. 8, 2012, for
instance, it offered the project to 24 ambassadors
visiting Batam during the 2012 Riau Islands
Province Diplomatic Tour.
Djoko said the project would not be hampered
by land acquisition like in other provinces because
land in Batam was outright owned by BPK FTZ.
Earlier, Riau Islands Chamber of Commerce and
Industry (Kadin) deputy head Amat Tantoso said
traffic congestion in Batam was alarming. He said
that congestion should not hamper export and
import activities.
We positively
welcome
the
planned
construction of the toll road project in Batam to
support the flow of cargo and services, said Amat.
Traffic congestion in Batam has worsened
alongside population growth and the open system
of vehicles entering Batam. Previously, vehicles
were limited to a one-in-one-out entry policy to
Batam, which regulated that vehicles entering
Batam must have a demolition certificate.
However, following regional autonomy, the
system was phased out as management of Batam
was handed over to the Batam city administration
and Batam Industrial and Development Authority,
which is now the BPK FTZ.

Trans-Sumatra road project to

start in October
The Jakarta Post, Jakarta

The government has made

yet another delay for the
construction of the long-awaited
Trans-Sumatra highway project,
now set to kick off in October
instead of September. StateOwned Enterprises Minister
Dahlan Iskan said on Saturday
that state-owned construction
company PT Hutama Karya,
which was appointed by the
ministry to construct the first four
segments of the highway project,
had already finished its business
plan, and thus could start the 16month project on Oct. 9.
The first four segments
connect Medan to Binjai in North
Sumatra, Pekanbaru to Dumai in
Riau, Bakauheni to Bandar
Lampung in Lampung and
Palembang to Indralaya in South
Sumatra.
The
company,
however, would still need to
submit its business plan to the
Public Works Ministry to be
approved, he said.
In
principle,
the
groundbreaking may start on
Oct. 9, on the condition that a
presidential decree [on the
appointment of Hutama Karya as
the projects contractor] is issued
no later than July 21, he said
after meeting with executives of
several state enterprises at the
ministry. The Office of the
Coordinating Economic Minister
is currently working on finalizing

the draft of the presidential

decree, according to Dahlan.
Coordinating
Economic
Minister
Chairul
Tanjung
previously said the government
had decided that construction of
the toll road should begin in
September before the new
government took office in
October. The 2,700-kilometer toll
road project will stretch from
Aceh to Lampung in 24 sections
connecting major cities in
Sumatra.
Deputy for infrastructure at
the
National
Development
Planning Board (Bappenas),
Dedy S. Priatna, earlier said that
total investment for the four
sections would reach around Rp
47 trillion (US$4.06 billion). To
construct the entire toll road, the
government needs to acquire
218,976 million square meters of
land.
But Dahlan said that no
significant
land
acquisition
issues would hinder the first
phase of the project because it
would be built on land mainly
owned
by
state-owned
companies, such as plantation
firm PT Perkebunan Nusantara
VII, despite the fact that the
government was currently still
negotiating on some plots of
land to be used for the project
and was paying out for some
other plots of land.

The project would also

involve several other stateowned companies, such as
cement maker PT Semen
Indonesia and toll road operator
PT Jasa Marga, as well as, if
possible,
several
regional
administrations for financing
matters, he said.
The Trans-Sumatra toll road
project
is
part
of
the
infrastructure projects under the
Master Plan for the Acceleration
and Expansion of Indonesian
Economic
Development
(MP3EI), which is expected to
support ASEAN connectivity
projects.
ASEAN connectivity projects
are designed to connect ASEAN
member states to one another.
The Office of the Coordinating
Economic Minister earlier said it
was moving to fast-track 15
priority infrastructure projects for
groundbreaking or completion
this year. Among those projects
are the Rp 14.9 trillion Cilamaya
Port in West Java, the Rp 8.29
trillion Kertajati Airport in West
Java,
the
expansion
of
Soekarno-Hatta
International
Airport in Banten and the
completion of the Rp 4 trillion
Jatigede Dam in Sumedang,
West Java. As of April, the dam
was 87 percent complete and
still needed around $55 million in
funds to be finishe

Solo-Kertosono road project to kick

off in August
.

Nadya Natahadibrata
The Jakarta Post/Jakarta
State-owned
toll
road
operator PT Jasa Marga will
begin the construction of the
Solo-Ngawi-Kertosono toll road,
connecting the Central Java and
East Java cities, in August this
year just a few months after the
company acquired the concession
rights to operate the toll road from
Thiess Contractors Indonesia.
Jasa Marga president director
Adityawarman told reporters on
Thursday that the groundbreaking for the toll road would be
held on April 20 in a ceremony at
which President Joko Jokowi
Widodo would be in attendance.
We will open the bidding for
construction companies in June
and the construction of the toll
road will begin two months
afterwards, Adityawarman said,
adding that the toll road would be
ready by the end of 2017.
Jasa Marga, along with stateowned construction company

PT Waskita Karya, spent about

Rp 439 billion (US$34.15 million)
to acquire the toll road project
from Thiess. Jasa Marga now
owns 60 percent of the shares in
the project, while Waskita Karya
owns the remaining 40 percent.
Thiess won the tender for the
project back in 2011 and began
construction the following year.
Initially, the company aimed to
finish the project in 2014, but was
only able to acquire 80 percent of
the needed land. Data from the
Public Works and Public Housing
Ministrys Toll Road Authority
(BPJT) shows that 91 percent of
the land needed for the SoloNgawi section has been acquired,
while 48 percent of the land has
been acquired for the NgawiKertosono section.
The total investment needed
to construct the 90-kilometer
Solo-Ngawi section amounts to
Rp 5.14 trillion, while the

investment for the 87-kilometer

Ngawi-Kertosono section will
require Rp 3.83 trillion. BPJT
head Achmad Gani Ghazali said
that
the
government
has
committed to help construct a 20kilometer stretch of the toll road in
the Solo-Ngawi section and a 36kilometer stretch in the NgawiKertosono section because of the
projects low investment return
ratio.
Meanwhile the 116-kilometer
Cikampek-Palimanan
highway,
the so-called Cipali toll road in
West Java, will be ready for
operation before this years Idul
Fitri holiday in July, according to
Gani. He said that the toll road
was expected to significantly
decrease traffic jams during the
annual exodus.
The construction is 93
percent complete. We are still
finishing the construction of nine
road bridges along the section,

Gani said. The Cipali toll road,

constructed by infrastructure firm
PT
Lintas
Marga
Sedaya,
comprises six sections: CikopoKalijati (29.12 km), KalijatiSubang (9.56 km), SubangCikedung (31.37 km), CikedungKertajati (17.66 km), KertajatiSumberjaya (14.51 km) and
Sumberjaya-Palimanan
(13.78
km).
The government is speeding
up the Trans-Java toll road
project, planning to complete the
construction of all sections
connecting Jakarta and Surabaya
(East Java) by 2018. The toll road
is expected to ease the heavy
traffic on Javas northern coastal
road, Pantura, which has long
been the islands transportation
backbone and which channels an
amount of freight equivalent to
almost 50 percent of the nations
economy.
Within the next three years, we

are prioritizing to connect Jakarta

and Surabaya with a toll road

network. We will continue the

network to Banyuwangi [East

Java] afterwards, Gani said.

Jasa Marga vying for 2

toll roads in H2
Nadya Natahadibrata
The Jakarta Post/Manado

State-run
toll
operator Jasa Marga is
considering bidding for
two toll road operating
tenders in the second
semester of this year
the Manado-Bitung and
Balikpapan-Samarinda
toll roads. Jasa Marga
president
director
Adityawarman said on
Thursday that his firm
would review details of
tender documents for
Manado-Bitung
and
Balikpapan-Samarinda
toll roads, which will
reportedly kick off in the
second half of this year.
Jasa Marga president
director
Adityawarman
said on Thursday that his
firm would review details
of tender documents for
Manado-Bitung
and
Balikpapan-Samarinda
toll roads, which will
reportedly kick off in the
second half of this year.
Jasa Marga would
look at closely at the
potential traffic volume
and revenue of operating

the toll roads, once they

were launched, he added.
The firm, according to
Adityawarman, will also
look at whether the
government will provide
any subsidy during the
toll roads initial periods
of operation.
The Manado-Bitung
toll road, which will
connect North Sulawesis
eastern and western parts
to boost the provinces
economic growth, is
expected to start operating
in the next three years at
an estimated cost of more
than
Rp 4
trillion
(US$298 million).
The toll road will
span
around
39
kilometers, with 26 km of
that being part of the
governments
portion.
TheBalikpapan
Samarinda toll road,
meanwhile, will help ease
distribution between East
Kalimantans oil city and
its capital city. The 99-km
road will cost up to Rp
14.9
trillion,
with

construction costs alone

accounting for Rp 9.6
trillion.
The toll road project
is
among
the
governments top 10
prioritized projects, set to
open
for
bidding
sometime this year. The
government
has
previously stated that it
will use $1.83 billion of
the states foreign debt to
finance
toll
road
developments in a bid to
reach its target of 1,000
kms of toll roads by 2019.
Jasa Marga itself has
recently secured Rp 2.85
trillion in syndicated
loans from state lenders
Bank Mandiri, Bank
Rakyat Indonesia, Bank
Negara Indonesia and
regional
development
lender Bank Sumatera
Utara. The loan will be
used to finance Jasa
Margas
Medan-Kuala
Namu-Tebing Tinggi toll
road, which is located in
Deli
Serdang,
North
Sumatra.

The toll road aims to

help spur the provinces
economy by connecting
the
Kuala
Namu
International Airport with
surrounding
strategic
areas. Jasa Marga has
seen a 5.3 percent revenue
drop, down to Rp 1.97
trillion in the JanuaryMarch period of this year
from Rp 2.08 trillion
during the same period
last year.
The firms net profit,
meanwhile, remained at
around Rp 762 billion
over the period. The
company, which is listed
on the Jakarta Stock
Exchange under the code
JSMR, is also looking to
increase
its
non-toll
revenue to around Rp 600
billion this year from Rp
583.2 billion last year.
Jasa Margas non-toll
revenue grew by 14.74
percent year-on-year last
year.