Waskita Uses Rp7.6 Trillion PMN To Build 7 Toll Roads: 6 In Java, 1 In Sumatra

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Waskita Karya (Persero) Tbk or Waskita will use State Capital Participation (PMN) funds of Rp7.9 trillion to complete the construction of seven toll roads in order to support the growth of regional economic activity.

"The PMN of Rp7.9 trillion which is planned to be given to Waskita will be fully used to continue the construction of six toll roads on the island of Java and one segment on the island of Sumatra," said Waskita Karya President Director, Destiawan Soewardjono, in a written statement, quoted from Antara, Monday 23 August.

He added that the completion of the seven toll roads will increase the flow of goods and people, thereby creating a positive impact on economic growth in the region.

A total of seven sections that will receive the PMN fund allocation are Bekasi-Cawang-Kampung Melayu Toll Road, Cimanggis-Cibitung Toll Road, Ciawi-Sukabumi Toll Road, Pejagan-Pemalang Toll Road, Pasuruan-Probolinggo Toll Road, Krian-Legundi-Bunder-Manyar Toll Road, and Toll Roads. Kayu Agung-Palembang-Betung.

With the completion of these toll roads, it will increase connectivity from production areas to distribution areas, facilitate access to tourism areas, and open access to new economic zones.

The toll road construction project will also have a direct impact in the form of absorbing construction workers and empowering local suppliers and MSMEs.

Based on data collected by Waskita during the first semester of this year, around 97,000 vehicles use the seven toll roads every day.

The number of vehicles using the seven toll roads is estimated to increase significantly after all toll sections are completed and in line with the economic recovery after the COVID-19 pandemic.

"Currently the need for infrastructure is getting bigger, especially to encourage the recovery of the national economy affected by the pandemic. For this reason, we are committed to supporting the government in accelerating infrastructure development," he said.

Destiawan explained that Waskita's infrastructure investment business model was in line with the government's development goals.

"Since 2014, Waskita has invested in 19 toll roads with a total length of more than 1,000 km. Waskita's business model as a toll road developer not only generates profits for the company and shareholders, but also creates long-term benefits for the community's economic growth," he said.

He said the absorption of PMN funds was targeted to be carried out as quickly as possible to ensure the project was completed on time.

"Waskita has begun to mobilize the necessary resources to support the construction of these sections," he said.

Waskita estimates that the completion of all segments will take up to 2025, depending on the speed of land acquisition progress for each segment.

He emphasized that Waskita is also committed to continuing to fulfill the principles of Good Corporate Governance in using PMN funds entrusted by the government.

As a public company whose shares are listed on the stock exchange, Waskita's PMN receipts will be made through the issuance of new shares under the Pre-emptive Rights (HMETD) scheme. Through the Pre-emptive Rights process, Waskita hopes to get additional funds from public shareholders with a value of around Rp4 trillion.

Currently, Waskita is considering the number of new shares to be issued in the Pre-emptive Rights process. Waskita's management hopes that the Preemptive Rights can be exercised at an exercise price that exceeds or at least equals the current book value of the company's equity.

Waskita targets all funds from the issuance of new shares with Pre-emptive Rights to be obtained in December this year.

"This additional capital will strengthen Waskita's financial capacity, to boost performance in 2022," said Destiawan.