Metro Pacific Tollways Corp. (MPTC) through its subsidiaries PT Margautama Nusantara (MUN) and PT Metro Pacific Tollways Indonesia Services (MPTIS), and its partner GIC of Singapore signed a deal to acquire a 35-percent stake in an Indonesian company that runs over a dozen toll roads.
MPTC and GIC, a Singaporean sovereign wealth fund, signed the deal worth about $1 billion with Jasamarga Transjawa Tol (JTT)— a subsidiary of leading Indonesian state-owned toll road operator PT Jasa Marga (Persero) Tbk (Jasa Marga).
“This deal fortifies MPTC’s goal to expand in Southeast Asia and enhance our infrastructure portfolio,” MPTC president and chief executive Rogelio Singson said.
“This expansion in Indonesia aligns well with our commitment to improve our regional presence in toll road operations,” he said.
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 the country’s economic powerhouse of Java Island.
MPTC said that with a long and strong track record as a leading regional toll road operator, the addition of JTT toll roads would further boost its portfolio to 1,130 kilometers connecting various economic zones in the Philippines and Indonesia.
The investment will also 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.
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 services.
GIC purchased a 33-percent stake in PT Margautama Nusantara (MUN) for $209.9 million in 2023. 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.