Indonesia Jasa Marga sees capex of $400 mln for new toll roads

Reuters, Wed Mar 25, 2009 8:26am EDT

JAKARTA, March 25 (Reuters) - Indonesian toll road operator, PT Jasa Marga Tbk (JSMR.JK), said on Wednesday it has earmarked 4.7 trillion rupiah ($407 million) for capital expenditure this year, four times the 2008 sum, for expansion and share purchases.

Frans Sunito, the firm's president director, told reporters that shareholders had approved the management's plan to build eight new toll roads over the next three to four years, at a cost of about 15 trillion rupiah.

Jasa Marga plans to increase the length of toll road it operates to 700 km, from 500 km currently, as a result of the expansion.

Sunito also said 30 percent of this year's capital expenditure would be used to increase its stakes in four firms which hold toll-road concession rights. The firm wants to be the majority stakeholder in three of the firms.

Jasa Marga reported net profit of 707.8 billion rupiah in 2008 on revenue of 3.35 trillion rupiah earlier on Wednesday.

The state-controlled firm is seen as a beneficiary of the government's drive to improve creaky infrastructure in order to boost growth in Southeast Asia's biggest economy.

The government has announced a 73.3 trillion rupiah fiscal stimulus package covering tax incentives and infrastructure projects.

On top of the fiscal stimulus, planning minister Paskah Suzetta said on Wednesday that infrastructure projects worth nearly $3.5 billion would be put up for tender in the second quarter. The projects would be funded by the private sector. ($1 = 11,540 rupiah) (Writing by Andreas Ismar; Editing by Sara Webb)