Tolls Prove Lucrative for Citra Marga, Nusantara

Jakarta Globe

Private toll road operator Citra Marga Nusaphala Persada reported an increase in earnings during the first half of this year, while Nusantara Infrastructure, a private port and toll road operator, reversed its fortunes to post a profit for the first time in three years.

Net income at Jakarta-based Citra Marga rose 30 percent to Rp 214 billion ($23 million) in the January-June period. Its revenue increased 15 percent to Rp 443 billion, the company said in a brief prospectus published in Investor Daily on Tuesday.

Rising car sales in Indonesia’s growing economy have spurred travel, helping Citra Marga post a 15 percent increase in toll revenue to Rp 441 billion. Citra Marga is competing with several toll road operators in Indonesia, including state-controlled Jasa Marga.

The government last year raised the country’s toll tariff in Jakarta and Surabaya to adjust for accelerating inflation.

Separately, construction services provider Nusantara Infrastructure swung to profit in the first half of this year.

The company, partly controlled by the Rajawali Group, posted net income of Rp 12.3 billion in the first half of this year, in contrast to a loss of Rp 25 billion in the same period a year earlier, the company said in a prospectus in Investor Daily. Revenue for Nusantara rose 25 percent to Rp 132 billion.

The company concluded a 39 percent stake in Inti Sentosa Alam Bahtera, a port operator, in April of this year. The port is located in Panjang, Lampung.

Nusantara has a 88.9 percent stake in Bintaro Serpong Damai, which holds a toll road concession linking Serpong and Pondok Aren in Banten province.

The government is encouraging companies to build more roads and tollways in a move to improve its infrastructure. Indonesia aims to be a top 10 global economic powerhouse.

Shares of Citra Marga rose 3.3 percent to Rp 2,025 on the Indonesia Stock Exchange on Tuesday, while shares of Nusantara closed unchanged at Rp 196.

Citra Marga has gained 38 percent in the past 12 months, while Nusantara has fallen 8.9 percent.