Nov 11, 2010

Jasa Marga to spend Rp3 trio capex

Indonesia’s largest toll road operator, PT Jasa Marga Tbk, will spend Rp2 trillion-Rp3 trillion of capital expenditure (capex) as it expects the vehicle volume to rise into 1 billion vehicles by 2011.
Financial Director of Jasa Marga Reynaldi Hermansyah said such double or triple jump of capex shall be used to further develop Jasa Marga’s business line, including the continued construction of three toll roads by next year.
These constructions hopefully may increase the vehicle volume that currently reached 944 million to 1 billion vehicles by next year, yet resulting in Jasa Marga’s revenue jump. However, Rinaldi declined to detail out the exact contribution value derived from those three toll road construction.
“We strongly expect those construction may contribute to our revenue jump, yet we still calculate the exact contribution. We are still reviewing it,” he said today.
Those three toll road constructions are Semarang-Solo toll road via Semarang-Ungaran, Surabaya-Mojokerto toll road via Waru-Sepanjang and the second phase Bogor Ring Road.
Reynaldi added that the capex partly will be generated from company’s internal source of fund while the remaining shall be derived from bank loans. Nonetheless, he said that Jasa Marga is still reviewing several possible compositions of the internal funds and bank loans.
Prior to this, President Director of Jasa Marga, Frans S Sunito said that his company expects a revenue jump by 10%-15% until the end of next year compared to this year’s projection of Rp4.2 trillion.
In the meantime, Jasa Marga’s revenue has totaled IDR3.2 trillion until the end of September 2010 or soared by 22.6% compared to the same period last year of Rp2.47 trillion.
Regarding to the cooperation project between Jasa Marga and Telkom over the fiber optic procurement, Rinaldi said that up until now, his company has not determined the exact investment value as it still reviews it.

Disclosure: No position at the stock mentioned above. 

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