Investment in infrastructure development: 3 SOEs to sell project assets
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia : Investasi Pembangunan Infrastruktur: 3 BUMN Lego Aset Proyek
17 May 2019
By: M. Nurhadi Pratomo
Bisnis, Jakarta — PT Wijaya Karya (Persero) Tbk, PT PP (Persero) Tbk, and PT Waskita Karya (Persero) Tbk are aiming for additional fresh funds from divestment of ownership in infrastructure development investment projects to strengthen the balance sheet.
Finance Director of Wijaya Karya Ade Wahyu stated that the divestment of the company’s shares in investment projects was still ongoing. His company hopes the process of selling its ownership in Surabaya-Mojokerteo (Sumo) toll road will be completed in May 2019.
“We will release all shares in Sumo toll road,” he stated to Bisnis, Thursday (16/5).
Ade hasn’t revealed how much fund the company will gain from the divestment. But, he stated that the investor who would purchase the company’s ownership was domestic.
The company management explained that the divestment was carried out on all of the company’s long-term investments, one of which was toll road. From this action, the company projected to rake in Rp700 billion in funds this year.
Agus Purbianto, Direktor of Finance and Human Resources Management of PP, explained that the company wanted to reduce its shares in Pandaan-Malang toll road to 17.5%.
The road spanning 38.48 kilometres is owned by PT Jasamarga Padaan Malang that consists of PP, Jasa Marga, and PT Sarana Multi Infrastruktur (Persero). “We will strive to finish [the Pandaan-Malang divestment] this year (in the second half of 2019),” he stated.
Apart from toll roads, the issuer coded PTPP will divest its ownership in ports. According to him, there are some investment projects with more than 20% of the company’s shares that are going to be released this year with a target of raising about Rp500 billion funds.
Finance and Strategy Director of Waskita Karya Harts Gunawan revealed that the company was in discussion with the would-be investor about the divestment of the three toll segments on the Trans-Java toll road.
The would-be investor is PT Bandha Investasi, which is a state-owned fund (private investment firm) initiated by the Ministry of State-Owned Enterprises.
Haris said Bandha Investasi would cooperate with Macquarie Group and Jasa Marga to purchase the company’s shares in three toll segments, namely Kanci-Pejagan, Pejagan-Pemalang, and Pasuruan-Purbolinggo.
Kresna Sekuritas Analyst Andreas Kristo Saragih assessed that the moves taken by the three state-owned contractor issuers were already appropriate for their main business was as contractors, not concessionaires.
