Five Firms Seek to Buy Thiess’s Cinere-Serpong Toll Road Concession
In this article (5)
Five investors are interested in acquiring an 80 percent stake in the Jakarta Outer Ring Road (JORR) II project from Thiess Contractors Indonesia after the company was unable to work on the concession due to financial difficulty.
State-controlled toll-road operator Jasa Marga is among the interested bidders, said its president director Adityawarman over the weekend. The company competes with Astratel Nusantara, an infrastructure unit of Astra International, and Indonesian integrated infrastructure company Nusantara Infrastruktur.
Jasa Marga set aside Rp 2 trillion ($153 million) to acquire the toll road concession and officially proposed a bid to Thiess — a private contractor working in the resource, infrastructure and energy sectors. Jasa Marga offered to take a 55 percent stake, while Waskita Karya would own 35 percent, and Jakarta Propertindo, another construction firm, would take 5 percent.
Based on data by the Toll Road Regulatory Agency (BPJT), Thiess owns 80 percent of the Cinere-Serpong toll road and Waskita Karya owns the remaining 20 percent.
Questions & Answers
Q.Which specific toll road concession are the five firms interested in acquiring?
Which specific toll road concession are the five firms interested in acquiring?
The firms are looking to acquire an 80 percent stake in the Jakarta Outer Ring Road (JORR) II project, which is identified as the Cinere-Serpong toll road concession in the article.
Q.Why is Thiess Contractors Indonesia selling its stake in the toll road concession?
Why is Thiess Contractors Indonesia selling its stake in the toll road concession?
Thiess Contractors Indonesia is selling its 80 percent stake because the company experienced financial difficulty, which prevented them from continuing to work on the concession project.
Q.Which companies has Jasa Marga partnered with in its bid for the concession?
Which companies has Jasa Marga partnered with in its bid for the concession?
Jasa Marga has partnered with Waskita Karya, which would own 35 percent, and Jakarta Propertindo, another construction firm, which would take a 5 percent stake in their proposed bid.
Q.How much money has Jasa Marga allocated for this potential acquisition?
How much money has Jasa Marga allocated for this potential acquisition?
Jasa Marga has set aside Rp 2 trillion, equivalent to $153 million, specifically to acquire the toll road concession from Thiess Contractors Indonesia.
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