Jasa Marga to go international next July

JAKARTA (JP): PT Jasa Marga, the state-run company assigned to manage all of Indonesia's toll roads, will go international in July next year to raise funds for its freeway projects, an executive said yesterday.

"We will use half of the funds to finance our new toll road projects," Jasa Marga's president, Mariyadi Darmokumoro, told reporters at the Ministry of Public Works office here.

The government is tendering the construction of 19 tollway segments, of which 18 will be located in Java and the other in North Sumatra. The projects, with a total length of 770 kilometers, will cost an estimated Rp 6.07 trillion.

Companies interested in the toll road projects, which will be constructed under a build, operate and transfer arrangement, are required to establish either joint ventures or joint operations with Jasa Marga.

Of the 19 toll road segments, one is expected to start operation by 2000, three by 2001 and the others by 2004.

"We do not have enough funds of our own. That is why we have to prepare funds to finance the toll roads jointly with the private sector partners before we start construction," Maryadi said.

He explained that since three months ago, legal, financial, and corporate consultants have been analyzing Jasa Marga's corporate conditions to prepare for going international.

One of the consultants is Peregrine of Hong Kong, he said.

Maryadi, however, said that the government has yet to decide where the company will be listed and how much money will be raised from the public offering.

Maryadi explained that the Ministry of Finance will select a global coordinator for the sale of Jasa Marga shares.

"So far, 11 major securities companies have applied for coordinating Jasa Marga's public offering overseas and they will make presentations next month," he said.

He refused to mention the names of the 11 companies but said that some of them took part in the coordination of the share issuance in New York by PT Indosat, the state-owned international telecommunications operator.

Maryadi said that Jasa Marga's profit is expected to increase to Rp 170 billion this year from Rp 150 billion last year, and its revenues to Rp 470 billion from Rp 430 billion. (31)