Hong Kong Investors Buy Two Waskita Toll Roads

JAKARTA - After going through a long process that began in February 2019, PT Waskita Toll Road, a subsidiary of PT Waskita Karya Tbk (Persero), finally received IDR 2.5 trillion from the divestment of two Trans Java toll roads, namely Solo-Ngawi and Ngawi-Kertosono- Kediri to investors from Hong Kong, Kings Key Limited.

The company is a subsidiary of Road King Expressway International Holdings Limited. The sales purchase agreement signing in Jakarta, Wednesday 18 December, was carried out by the President Director of Waskita Toll Road Herwidiakto and CEO of Road King Expressway International Holdings Limited Willy Chow.

Herwidiakto explained the process was quite long because the Hong Kong investor was very detailed. "They are quite thorough, all aspects down to small things, such as prediction of debt that is not covered, it becomes their concern (attention)," he said.

Director of Business Development & Quality, Safety, Health & Environment Waskita Karya Fery Hendriyanto on the same occasion said that the divestment process is part of the company's business process starting from initiation, investment, construction, operation, and then divestment.

"This is proof that the strategy that has been set and directed by the commissioners can be realized well," he said.

Meanwhile, the Co-Chairman / Executive Director of Road King Infrastructure, William Zen, said that the company already has five toll roads in China and now two in Indonesia through this divestment.

"We chose Indonesia because we believe that among other ASEAN countries, Indonesia has promising growth and development potential in the next 20 to 30 years," he said.

With the fourth largest population in the world, he said that Indonesia has great potential because the population's income will continue to increase and have an impact on revenue from toll roads.

Waskita Toll Road holds 40 percent of shares in the Solo-Ngawi Toll Road (PT Jasa Marga Solo Ngawi / JSN) and 40 percent of shares in the Ngawi-Kertosono-Kediri Toll Road (PT Jasa Marga Ngawi Kertosono Kediri / JNKK).

Each of the companies divested 40 percent of the shares they owned in the two toll roads with a concession period of 50 years. The proceeds from the divestment will be used to close the debt gap and to develop new toll roads.