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Technology Transfer | Investment
Jasa Marga Tbk | Mr Adityawarman
Mr Adityawarman

Our goals as a company go beyond financial gains as we are participating in furthering the advancement of our country. We must dare to rethink ways to make our transportation system more efficient

Mr Adityawarman, President Director

PT Jasa Marga Tbk is Indonesia’s leading state-owned company specializing in constructing and operating toll roads. What more can you tell us about your company’s integral role in developing the country’s infrastructure?

Indonesia is a large country comprised of many islands. The country’s sizeable population as well as the need for greater connectivity between cities and provinces on individual islands brings about immense opportunities for the development of road networks. The potential for this type of infrastructure development is evidenced in projects such as the proposed Trans-Sumatra Toll Road, a 2,632 kilometer stretch of road connecting the northern province of Aceh to Lampung in the south, as well as the 800 kilometer Trans-Java Toll Road. Infrastructure projects of this variety do not just promise benefits for Jasa Marga, but also contribute directly to Indonesia’s continued development as an integrated nation through improved connectivity. With better road links already much needed, demand for toll road infrastructure is only set to rise over the next 5 to 6 years.

Indonesia has in recent years had to contend with the rapid growth of the number of cars compared to the growth of its roads. What is your outlook over the next few years for infrastructure development in Indonesia?

The growing number of cars in Indonesia means potential for development as they will need roads, and as such we see this as an opportunity going forward. We also see bright prospects for road development in certain parts of Indonesia experiencing industry growth. A perfect example would be the flourishing industrial landscape of the eastern part of Java. This region will soon integrate with the surrounding islands extending to Nusa Tenggara if we refer to the government’s MP3EI plan [Masterplan for Economic Development]. When looking to initiate new projects to improve land connectivity, our company also takes into account the potential of the region in becoming an industrial hub and centre for business activity.

President Joko Widodo has mentioned that maritime infrastructure development is going to be one of his priorities. How does this affect plans for better national connectivity in Indonesia, specifically road transportation?

Indonesia is an archipelago which in itself offers interesting opportunities, but unfortunately, we lack infrastructure in certain areas. Over the years, the country’s inter-island connectivity and maritime sector has lagged behind its land counterpart in terms of development. We are expecting this maritime potential to be managed in support of Indonesia’s logistics sector.

Currently, the reality is that the inter-island transportation for people and logistics is still mixed. President Joko Widodo plans to separate this. Jasa Marga plays a main role in providing connectivity between ports and population centers such as cities. In that respect, an enduring challenge is the protracted land acquisition process. Fortunately, the new government regulation on that matter proves to be more progressive compared to the old law. Freeing land for public infrastructure projects is now subject to a clear timeframe.

Jasa Marga is involved in several projects such as the Bogor Outer Ring Road and the Semarang-Solo-Surabaya-Mojokerto road network, among others. What more can you tell us about Jasa Marga’s current priority projects as well as its future projects?

We currently have seven ongoing projects while our future projects include the construction of the Trans-Sumatra Toll Road connecting Medan and Kualanamu in North Sumatra to Tebingtinggi in West Sumatra.

Other projects include Medan-Binjai in North Sumatra, Bakauheni-Tegineneng in Lampung, Manado-Bitung in North Sulawesi, the Balikpapan-Samarinda toll road in Kalimantan as well as toll roads in Java, such as Gedebage to Soekarno-Hatta in the city of Bandung.

Building upon its industry-leading position, Jasa Marga has sought to innovate through cooperation with other prominent state owned enterprises such as PT Telkom for the introduction of the OBU E-Toll Pass system. What other innovations will Jasa Marga be introducing in the future?

Jasa Marga initiated this cooperation with PT Telkom for that particular system because we expect cashless transactions to be commonplace in the future as the technology is already widespread. The OBU E-Toll Pass also contributes to improving both transaction time and security. Additionally, we have also developed the Variable Message Sign (VMS) system to help drivers be more aware of ongoing situations on the toll road. As for the future, Jasa Marga plans to work on technologies seeking to increase transaction efficiency so that the number of tollbooths can be reduced.

Jasa Marga is expanding to other businesses in addition to the toll road business. Can you elaborate on your strategy for this expansion?

Jasa Marga is committed to completing a number of toll road projects in the coming 3-6 years. Given that the characteristic for the toll road business in terms of reaching the break-even point is relatively long-term, the projects are expected to attain self-sustaining capabilities no faster than 8 years. During that 8-year period, Jasa Marga plans to pursue other business ventures to acquire additional income and help counterbalance the financial pressure from factors such as loans and interests.

Not long ago, we issued bonds to obtain funds for use in paying back debts that have a higher interest rate than that of the bond. A second allocation is for supporting the development of secondary businesses. Jasa Marga is looking to develop properties in several regions, such as in Jakarta and Surabaya. The planned projects are located in the vicinity of our toll roads.

Foreign investors have been quite active in Indonesia, especially in key sectors such as infrastructure. What kind of partnerships can foreign entities form with Jasa Marga in particular?

Jasa Marga considers both the possibilities of financing and technology transfer as equally important opportunities. The right technology, for instance, can help push down costs. Therefore, foreign firms possessing expertise related to technology not yet available in Indonesia are encouraged to reach out to us, to provide us with the advanced tools befitting our comprehensive understanding of Indonesian topography in delivering efficient projects.

As a final message, what would you like our readers to remember about your company?    

Jasa Marga is a professional organization carrying out its mission with integrity. Our goals as a company go beyond financial gains as we are participating in furthering the advancement of our country. We must dare to rethink ways to make our transportation system more efficient. Jasa Marga seeks to build highways to help tackle the prevalence of road congestion that lead to fuel waste and increased costs. Conclusively, infrastructure is the driver of a country’s development. Through a well-built road network, industries will thrive and subsequently take in more of Indonesia’s growing workforce to the benefit of its people.

Global Business Guide Indonesia - 2015

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