INDONESIAS TOLL ROAD DEVELOPMENT

Reynaldi Hermansjah
CFO PT Jasa Marga (Persero) Tbk.
Indonesia Australia Business Week
0
Jakarta, 18 November 2015

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National Development Mid-term Plan (2015-2019)

No

Projects

Baseline
2014

Objective
2019

1.

Seaport (number of port)

278

302

2.

Electricity Supply (GW)

50.7

85.7

3.

National Road (km)

1,202

3,852

4.

Toll Road (km)

807

1,807

5.

Railways (km)

5,434

8,692

6.

Airport (number of port)

237

252

Regulatory Framework
Current regulatory structure
Jasa Marga has flexibility to invest in prospective toll road.
Encourage more private participation in toll roads business no limit on
foreign ownership.
Competitive bidding environment with strict financial closure requirements on
winners.
Government
of Indonesia
(GOI)

Ministry of StateOwned Enterprises

(MSOE)
70%
Ownership

30%
Ownership
Public

Since 12
Nov 2007

Granting &
Supervising Toll
Road concessions

Minister of
Public Works

Indonesian Toll Road

Authority
(BPJT)

Concession Agreement

Directorate General
of
Highways

Ministry of Public
Works (MPW)

Road Network
Planning & Setting
of Technical
Specifications

Concession
Agreement

Private Toll Road Investors

Private Toll Road Investors
Private Toll Road Investors

Improved Regulations
Tariff

Land Acquisition

Initial toll tariff is calculated based on Land acquisition is Governments

investment feasibility, toll road users
ability to pay and vehicle operating
cost saving. Investment feasibility is
calculated based on estimated
investment cost and projected
revenue
during
term
of
the
concession.

responsibility, is undertaken by land

procurement committee appointed by
the Government.

Price is determined by independent

appraiser based on fair market price.

Government provides a revolving

fund to acquire land in advance. Land
cost and availability is secured,
because investor should repay land
cost only after land is fully acquired.

Initial toll tariff is stipulated in

concession agreement prior to start of
construction.

Tariff adjustment is regulated by law, Government guarantees maximum

is calculated based on CPI and is
adjusted once every two years.

land price to be compensated by the

investor (land capping scheme).

Initial toll tariff setup and subsequent

adjustment is decided by Minister of
Public Works decree.
4

Stages of Land Acquisition (Based on UU No. 2/2012)

The new land acquisition law carries the following main points:
Fair price is determined through independent appraisal.
Land owner may choose to reject through court, yet court has to decided in 30 days (final).
After transaction process (normal) or by court verdict, project can commence.
Re-settlement is also an option.
The Government should carry out socialization far in advance (transparent).
BPN (National Land Agency) is the only body responsible for land acquisition for public interests.
5

Implementation of Viability Gap Funding (VGF) from the

Government
Medan-Kualanamu-Tebing Tinggi Toll Road

Belawan-Tanjung Morawa
Toll Road

Length

Investment
Cost

61.7 km

Rp 4.07 trillion

17.8 km

43.9 km
Notes :
Constructed by Government
Constructed by Investor

Implementation of Viability Gap Funding (VGF) from the

Government
TRANS JAVA TOLL ROAD

SOLO-NGAWI (90.1 KM)

NGAWI-KERTOSONO (87.02 KM)

Investor

Section

Land
Acquisition:
96%
Construction:
40%

Length

Investment
Cost

Solo-Ngawi

90.1 km

Rp 5.14 trillion

Ngawi-Kertosono

87.02 km

Rp 3.83 trillion

Notes :
Constructed by Government
Constructed by Investor

Toll Road Operator in Indonesia with 37 Years of Experience

Start
Operation

1978

1983

1984

Jagorawi

1986

SurabayaGempol (4)

Semarang

1987

1988

1990

Padaleunyi
JakartaCikampek

Jakarta-Tangerang

Toll Road
Concessions

1998

2001

2003

2009

2011

Cipularang

Palikanci

Ulujami-Pondok Bogor Outer

Ring Road
Aren
BORR
Jakarta Outer
(Section 1)(2)
Ring Road
(JORR)
Surabaya-Mojokerto
(Section 1A)(2)

Belmera

Prof. Dr. Ir.

Sedyatmo

1991

Jakarta Inner
Ring Road
(JIRR) (1)

2013

2014

2015

JORR W2 North
(Section 1-4)(2)

BORR
(Section 2 & 3)(2)

Semarang-Solo
(Section 2)(2)
GempolPandaan(2)
BORR
(Section
2A)(2)

GempolPasuruan(2)
SemarangSolo(2)

Cengkareng-Kunciran(2)

Semarang-Solo
(Section 1)(2)

Kunciran-Serpong(2)

Surabaya-Mojokerto(2)
Nusa Dua-Ngurah
(2)
Rai-Benoa
Medan-Kualanamu-Tebing Tinggi(2)
Solo-Ngawi(2)
Ngawi-Kertosono(2)
Cinere-Serpong(2)
Number of
Concessions

10

11

12

13

14

16

17

18

19

26

Total Length (km)

under
986.81
59
84
131 223
246
329
394
437
463
469
527
531
544
554
576
590
Corresponding
(3)
Concessions
Note: (1) Jakarta Inner Ring Road (JIRR) is comprised of the Cawang-Tomang-Pluit concession granted to Jasa Marga and Cawang-Tanjung Priok-Pluit concession granted to CMNP.
(2) Jasa Margas newly acquired toll road concessions.
(3) The cumulative length of road represents the current total road length that corresponds to key toll road concessions in this table, not to the year where the concession started.
(4) Porong-Gempol Section (5 km) within Surabaya-Gempol Toll Road has officially been closed due to force majeure (mud) since 2006.

The Largest Toll Road Operator in Indonesia

Manages and operates 590 km of toll roads in Indonesia 63% share.

Urban concentration in Jakarta metropolitan area some of Indonesias busiest toll roads.

Regional concentration in Java and Sumatera most populated islands in Indonesia.

Strait of
Malacca

:Operated before 2004

NORTH SUMATERA
Belmera: 42.70 km
Medan-Kualanamu-Tebing Tinggi: 61.70 km

GREATER JAKARTA & WEST JAVA

SUMATRA
Jagorawi: 59.00 km
Jakarta-Tangerang: 33.00 km
Ulujami-Pondok Aren: 5.55 km
Jakarta Inner Ring Road: 23.55 km
Prof. Dr. Ir. Sedyatmo: 14.30 km
Jakarta-Cikampek: 83.00 km
JORR: 43.10 km
Cikampek-Padalarang: 58.50 km
Padalarang-Cileunyi: 64.40 km
Palikanci: 26.30 km
Bogor Outer Ring Road: 11.00 km
Cengkareng-Kunciran: 14.19 km
Kunciran-Serpong: 11.19 km
JORR W2 North: 7.70 km
Cinere-Serpong: 10.24 km

: 13 new projects on
the pipeline,
operating in stage
since 2009.

MALUKU

SULAWESI
KALIMANTAN

PAPUA

Java Sea
Banda Sea
JAVA
BALI

CENTRAL
JAVA
Indian Ocean
Semarang: 24.75 km
Semarang-Solo: 72.64 km
Solo-Ngawi: 90.1 km
Ngawi-Kertosono: 87.02 km

Greater Jakarta: 275 km (47%)

EAST JAVA
Surabaya-Gempol: 49.00 km
Gempol-Pasuruan: 34.15 km
Timor Sea
Surabaya-Mojokerto: 36.27 km
Gempol-Pandaan: 13.61 km

BALI
Nusa Dua-Ngurah Rai-Benoa: 10.00 km

Non-Greater Jakarta: 315 km (53%)

9

Jasa Marga New Projects

Jasa Margas New Toll Roads

Expiration

Length
(km)

Investment Cost
(Rp trillion)

Jasa Marga
Ownership

1. Bogor Outer Ring Road (1)

2054

11.00

0.98

55%

2. Semarang-Solo (part of Trans Java) (2)

2055

72.64

6.21

73.91%

3. Gempol-Pasuruan (part of Trans Java)

45 years from effective date

34.15

2.77

97.02%

4. JORR2 (Cengkareng-Kunciran)

35 years from effective date

14.19

3.51

76.20%

5. JORR2 (Kunciran-Serpong)

35 years from effective date

11.19

2.62

60%

6. JORR W2 North (road section of JORR) (5)

2044

7.70

2.15

65%

7. Surabaya-Mojokerto (3)

2049

36.30

3.22

55%

8. Gempol-Pandaan

35 years from effective date

13.61

1.17

89.17%

9. Nusa Dua-Ngurah Rai-Benoa (4)

45 years from effective date

10.00

2.48

55%

10. Medan-Kualanamu-Tebing Tinggi

40 years from effective date

61.70

4.07

55%

11. Solo-Ngawi (part of Trans Java)

35 years from effective date

90.10

5.14

59.99%

12. Ngawi-Kertosono (part of Trans Java)

35 years from effective date

87.02

3.83

59.99%

13. Cinere-Serpong

35 years from effective date

10.24

2.2

55%

459.84

40.35

Concession/Section

TOTAL

Notes: (1) Section 1: Sentul-Kedung Halang (3.85 km) is operated since 23 November 2009; Section 2A: Kedung Halang-Kedung Badak (1.95 km) is operated since 04
June 2014.
(2) Section 1: Semarang-Ungaran (10.80 km) is operated since 17 November 2011; Section 2: Ungaran-Bawen (12.30 km) is operated since 04 April 2014.
(3) Section 1A: Waru-Sepanjang (2.30 km) is operated since 05 September 2011.
(4) Operated since 01 October 2013.
(5) Section Kebon Jeruk-Cileduk (5.70 km) is operated since 04 January 2014; Section Cileduk-Ulujami (2.00 km) is operated since 22 July 2014.
(6) Section Gempol-Pandaan (13.61 km) is operated since 12 June 2015.
10

Greater Jakarta Toll Road Network

Integrated toll road network

in and around Greater
Jakarta.

11

Toll Road Network in Java Island

12

Indonesias Toll Road Traffic Volume

Jasa Marga operates most of the busiest toll roads in Indonesia.
Average Daily Traffic Volume Transaction* (December 2014)
000 cars per day
(80%)

Toll roads operated by Jasa Marga

Toll roads operated by others

Notes(*):
(1) Average daily traffic volume is calculated by dividing traffic volume by 365 days.
(2) All data are based on traffic volume until 31 December 2014.
(3) When not available, data on other companies are based on the closest estimation of available data.

13

Resilient Industry: Insensitive Traffic Volume

Fluctuating car sales growth in Indonesia has minimal impact to our traffic volume,
however increase in car sales will contribute to higher traffic volumes in the long
run.
Traffic on Jasa Margas Toll Roads

Car Sales
(thousand)

Direct impact
of economic
crisis

Source: GAIKINDO (2)

(million)

Direct impact of
fuel price hike (1)

Source: Jasa Marga

Note:
(1) Fuel price increased significantly in October 2005 but the full impact in car sales was only felt in 2006.
(2) Gabungan Industri Kendaraan Bermotor Indonesia (The Association of Indonesian Automotive Industries).

14

High Growth of Quality Asset for Sustainable Revenue Growth

Jasa Margas expansion from current new projects will accelerate the asset value with the
capability to generate high and sustainable revenue growth.
Revenue Growth

Asset Growth

(Rp trillion)

90.07

18.48

7.23

31.86

2014A

(Rp trillion)

2020F

2014A

2020F

15

THANK YOU

16