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Jasa Marga Budgets More for Toll Road Building Boom
November 24, 2011

Jakarta Jakarta's toll roads. (JG Photo/Yudhi Sukma Wijaya)
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State toll road operator Jasa Marga has increased its capital expenditure budget for next year to support its development plans.

Frans S. Sunito, the company’s president director, said earlier this week that the company had allocated Rp 6.5 trillion ($722 million) for capex in 2012 — up from Rp 6.2 trillion this year. Of that, Rp 5 trillion will be spent on the construction of toll roads.

“A bulk of that spending will be used for land acquisitions, diggings and construction,” Sunito said. The Rp 1.5 trillion balance will be used to modernize the company’s existing toll roads, including new electronic signs and road markings.

He said 70 percent of the capital expenditure would be financed by bank loans, with the remainder funded through internal cash flow.

Jasa Marga operates 530 kilometers of toll roads in Java, Sumatra and Bali. In the next three years, the company aims to operate another 215 kilometers of toll roads, at an estimated construction and development cost of Rp 24 trillion.

Jasa Marga posted Rp 3.5 trillion revenue for the first three quarters of the year, up 12 percent from a year earlier, while net income rose 9.2 percent to Rp 1.04 trillion in the same period.

CIMB Securities projected Jasa Marga’s revenue would reach Rp 4.9 trillion by the end of this year while net income would be Rp 1.4 trillion.

In 2010, the company’s revenue was Rp 4.3 trillion and its net income was Rp 1.1 trillion.

Lydia Toisuta, an analyst at CIMB Securities, rated Jasa Marga stocks as “outperform,” with a target price of Rp 5,500.

In Thursday trading, the stock fell 1 percent to close at Rp 3,800.

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