METRO PACIFIC Tollways Corp. (MPTC) subsidiaries and Singapore’s GIC Pte. Ltd., a global institutional investor, have finalized their investment cooperation valued at $1 billion for the acquisition of a 35% stake in PT Jasamarga Transjawa Tol (JTT), a major toll road operator in Indonesia.
“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 Officer and President Rogelio L. Singson said in a media release on Tuesday.
JTT is a subsidiary of PT Jasa Marga (Persero) Tbk, Indonesia’s state-owned toll road operator.
The tollway arm of the Pangilinan group said this investment would allow Jasa Marga to raise funds to maintain, enhance, and continue expanding the toll road networks across Indonesia.
MPTC units PT Margautama Nusantara (MUN) and PT Metro Pacific Tollways Indonesia Services (MPTIS) and Singapore’s GIC signed the investment cooperation deal in July.
“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,” MPTC said.
In 2023, GIC acquired a 33% stake in MPTC’s MUN for $209.9 million. Consequently, MPTC’s ownership in MUN decreased to 60.3%, although it retains the majority share. MPTC concurrently collaborated with GIC in the joint bidding process for JTT.
MPTC anticipates generating P30 billion in yearly revenue from its toll road contract in Indonesia.
JTT, a state-owned enterprise, is the largest toll road operator in Indonesia. Its toll road is an expressway network spanning from the Port of Merak in Cilegon — the main link between Sumatra and Java — to Banyuwangi, the eastern end of Java and the main link between it and Bali.
It manages the 676-kilometer section of the Trans-Java toll, serving between 700,000 and 800,000 vehicles daily.
MPTC is the tollway arm of Metro Pacific Investments Corp., which is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose
