Astra And Conglomerate Martua Sitorus Increasingly Stimulate Toll Road Business, Want To Pursue Old Players Such As Anthony Salim, Jusuf Hamka, To The Bosowa Family

JAKARTA - The Toll Road Regulatory Agency of the Ministry of Public Works and Public Housing announced a matter that brought the toll business competition map by conglomerates in Indonesia to be increasingly tight. Private entrepreneurs are increasingly taking on a role in these expressway projects.

The Sentul Selatan-Karawang Barat toll road project is the latest entity to be contested. The 61.5 kilometer toll road in East Jakarta is estimated to absorb an investment of Rp. 15.37 trillion. The prequalification auction will be held from January 26, 2022 to April 4, 2022.

"Pre-qualification registration can only be carried out by the President Director of the Company or a party authorized by the President Director by attaching a Power of Attorney," wrote the Auction Committee from BPJT in its announcement, Tuesday, January 25.

The condition that makes this toll segment attractive is that this freeway was proposed by a subsidiary of the Astra Group, PT Pama Persada Nusantara. This road complements other proposals from Astra, namely the Bogor-Serpong Toll Road via Parung. This toll road requires an investment of IDR 8.95 trillion with a segment length of 31.1 kilometers.

This toll road connecting the East side of Jakarta is the target of many toll investors because it is able to connect to Serpong. However, Astra has the opportunity to take this segment because it has the right to propose by equalizing the bid to the winner or right to match.

Astra itself combines its toll road lines into one entity with the name Astra Infra. The sub-holding already has a number of strategic concessions, such as the Tangerang-Merak Toll Road, JORR I Ulujami-Kebon Jeruk, Cikopo-Palimanan, Semarang-Solo, Jombang-Mojokerto, Pandaan-Malang and Kunciran-Serpong.

Currently, Astra Infra has contributed to the toll road infrastructure with a total length of 396 km and is the largest private toll road player in Indonesia. Meanwhile, last week, Astra Infra just completed the acquisition of 49 percent of the Pandaan-Malang toll road segment.

In a written statement, Astra Infra's management stated that it wants to be consistent with its commitment to support the progress of the nation's infrastructure. After the acquisition, the company's control of the toll road becomes a total length of 396 Km.

"Strengthening the toll road business portfolio by investing in the Pandaan-Malang toll road is a manifestation of Astra Infra's efforts in 2021 to continue to grow and contribute in the midst of the pandemic," explained Astra Infra's management.

Cement belonging to the conglomerate Martua Sitorus is heavily used on toll roads

As Astra continues to expand its toll road portfolio, conglomerate Martua Sitorus has taken the same steps. One of the Forbes' Crazy Rich Indonesia versions, he continues to ensure that his cement factory products are absorbed by the toll road expansion carried out.

Martua, through Gama Group, won the Yogjakarta-Solo toll road of more than 91 kilometers. Gama and PT Daya Mulia Turangga (DMT) own 51 percent of the shares. The rest is owned by Jasa Marga (Persero) Tbk. (JSMR) and PT Adhi Karya (Persero) Tbk. (ADHI) respectively 25 percent and 24 percent.

The shares of this construction company have the opportunity to be seized by Gama because usually after the construction is completed it will be sold by the shareholders. Martua also won the 206-kilometer Gedebage-Tasikmalaya-Cilacap toll road segment. This toll road requires a gradual investment with a total of IDR 56 trillion.

Meanwhile, in the consortium there are also PT Daya Mulia Turangga - PT Gama Group - PT Jasa Sarana (27.5 percent), PT PP (Persero) Tbk. (10 percent), PT Waskita Karya (Persero) Tbk. (20 percent), and PT Wijaya Karya (Persero) Tbk. (10 percent).

The expansion from Astra and Martua Sotirus has brought more diverse private players in the toll road business. They will compete with the Salim group through PT Nusantara Infrastructure Tbk (META), Jusuf Hamka's Family, the King of Inner City Toll Roads and the Bosowa Family in Eastern Indonesia.