Nusantara Infrastructure targets Rp2.3 trillion revenue from JORR Elevated
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.
Investor Daily - Nusantara Infrastructure targetkan pendapatan JORR Elevated Rp2,3 triliun
19 May 2022
Jakarta – PT Nusantara Infrastructure Tbk (META) forecasts that revenue from Jakarta Outer Ring Road Elevated will reach around Rp2.2-2.3 trillion. Nusantara Infrastructure Director Danni Hasan explained that JORR Elevated was an unsolicited project, so the revenue will still rely on the set tariff.
He continued that the current tariff was set at Rp16 thousand. When the project is completed, JORR Elevated’s tariff will probably be set at around Rp19-20 thousand.
Hence, if the tariff is integrated and approved, Danni predicts that the contribution of JORR Elevated to the company’s revenue can reach around Rp2.2-2.3 trillion. “That is amazing. Our current revenue from toll roads is around Rp450 billion to Rp600 billion. This means that the company’s revenue will grow five times,” he explained during a public disclosure on Wednesday (18/5/2022).
According to Danni, the revenue forecast of JORR Elevated is quite large as the size of the toll road project is also quite big. “It can be imagined as the revenue of Jakarta Outer Ring Road West 1 that spans 9.7 km surpasses Rp500 billion, so JORR Elevated that spans 21 km will also have a higher tariff than Jakarta Outer Ring Road West 1,” he revealed.
In the future, Danni added that the company would actively target new toll roads on top of developing green field projects and repairing existing projects. Hence, the company is always open to offers from businesses in the toll road industry through several investment bankers. The company is also observing the potential of acquiring several toll roads in Jakarta.
“We are quite active in targeting new toll roads. Hopefully, if everything goes well and the price is in line with our investment scorecard, we might expand the company’s portfolio. Toll road assets of construction SOEs (State-owned Enterprises) included,” Danni said.
Meanwhile, Nusantara Infrastructure President Director Ramdani Basri said that the company was focused on developing their toll road business as the funding requirement of the business line was quite large. “It can be said that almost 65% of the company’s income currently comes from toll roads, so we are focusing more on developing toll roads,” he said.
However, that does not mean that META is leaving businesses in the water and energy sectors. In the water sector, Ramdani said that the company was targeting one of the projects in eastern Indonesia that is currently on process. Then, in the energy sector, there are several projects that are still in development.
