MPTC inks concession for Indonesia tollway

MANILA, Philippines —  The Metro Pacific Group has signed the $1-billion concession for a tollway in Indonesia, landing its largest expressway outside the Philippines to date and bagging another revenue source.

Metro Pacific Tollways Corp. (MPTC) yesterday said that it has signed the concession for a 35 percent stake in PT Jasamarga Transjawa Tol for $1 billion.

Jasamarga operates a 676 kilometer segment in the Trans-Java Toll, considered as a crown jewel by the Indonesian economy for facilitating an average of 850,000 vehicles daily.

MPTC thus raised its toll road network to 1,130 kilometers covering multiple projects in the Philippines, Indonesia and Vietnam. MPTC president and CEO Rogelio Singson said the deal underscores the company’s push to expand the business around Southeast Asia.

“This deal fortifies MPTC’s goal to expand in Southeast Asia and also enhance our infrastructure portfolio. This expansion in Indonesia aligns well with our commitment to improve our regional presence in toll road operations,” Singson said.

For Jasamarga, the investment injects it with additional capital to keep its balance sheet healthy, infusing it with fresh capital to finance expansion works.

Further, the entry of MPTC in the Trans-Java Toll allows Jasamarga to receive new investments without giving up majority control in the toll road.

For this transaction, MPTC hired HSBC and BCA Sekuritas as joint financial advisors.

MPTC also worked with Singapore’s sovereign wealth fund GIC Pte. Ltd. in bidding for a stake in Jasamarga. In 2023, GIC acquired a 33 percent stake in MPTC-led PT Margautama Nusantara for $209.9 million, bringing down MPTC’s share in the company to 60.3 percent.

In an earlier interview with reporters, MPTC chairman Manuel V. Pangilinan said the company is looking forward to the revenue potential that the new concession will bring. In his estimates, the project will generate around P30 billion annually for MPTC.

Similarly, the addition of the Trans-Java Toll in MPTC’s road network will play a critical role in determining the value of the joint venture that Pangilinan and SMC’s Ramon Ang are forming.

Pangilinan and Ang are negotiating the possibility of merging their toll interests with the aim of listing a tollway giant on the Philippine Stock Exchange.