MPTC increases toll road projects in Indonesia after JTT acquisition

Metro Pacific Tollways Corp. (MPTC) expanded its toll road portfolio in Indonesia after finalizing a strategic investment in PT Jasamarga Transjawa Tol (JTT), a subsidiary of the Indonesian state-owned toll road company Jasa Marga.

Through its subsidiaries PT Margautama Nusantara (MUN) and PT Metro Pacific Tollways Indonesia Services (MPTIS), MPTC acquired a 35-percent stake in JTT for about $1 billion. The investment was made in partnership with GIC, a global institutional investor.

“This milestone marks our significant expansion in the Indonesian toll road market. Our collaboration with GIC and Jasa Marga underscores our commitment to expanding our portfolio by collaborating with the leading global investment firms and infrastructure providers,” MPTC chief executive and president Rogelio Singson said.

The investment will allow Jasa Marga to raise capital, maintain a healthy leverage level and continue expanding toll road networks across Indonesia — enhancing infrastructure and connectivity for future economic development.

JTT is a network of 13 toll roads in the provinces of West Java, Central Java and East Java.

The combined 676-kilometer-long road is considered Indonesia’s crown jewel that allows the efficient flow of 850,000 vehicles daily across Indonesia’s economic powerhouse of Java Island.

With a long and strong track record as a leading regional toll road operator, the addition of JTT toll roads will further boost MPTC’s portfolio to 1,130 kilometers connecting various economic zones in the Philippines and Indonesia.

By bringing in MPTC, a leading international toll road operator, and GIC, a highly experienced global infrastructure investor — as new and value-adding partners — Jasa Marga can maintain full control over JTT’s strategic infrastructure assets and solidify the quality of its service.

GIC purchased a 33-percent stake in PT Margautama Nusantara (MUN) for $209.9 million last year.

MPTC’s stake in MUN decreased to 60.3 percent — while it continues to hold the majority share. MPTC also teamed up with GIC in bidding for JTT.

HSBC served as the joint financial advisor to MPTC and sole financial advisor to GIC for the transaction, while BCA Sekuritas acted as the joint financial advisor to MPTC.