Indonesia: Jasa Marga sees traffic recovery, driven by trans-Java toll road

  • State-owned toll road operator PT Jasa Marga saw signs of recovery in its operations and finance nearing the end of the year, following the loosening of pandemic curbs that boosted vehicle traffic, particularly in the trans-Java toll road network.
  • The easing of mobility restrictions in the capital and more relaxed pandemic policies in various regions on Java Island allowed traffic to pick up faster on the trans-Java toll road than on toll roads within the capital Jakarta, according to Jasa Marga financial director Donny Arsal.
  • “Only the toll roads in Greater Jakarta [were not as busy],” Donny said. “The trans-Java toll road has risen above the forecast, perhaps due to a switch from airplanes and trains to cars. So, traffic on the trans-Java has returned to its normal level, even slightly above it.”
  • The toll road operator has seen a less than 5% fall in revenue from the February level, far less severe than the 60% fall seen in the Mar-May 20 period, Donny said.
  • Jasa Marga’s toll road revenue, which contributes to most of its earning, has fallen by 15% y/y to IDR6.25tr as of Sep 20, a financial report published on the company’s website shows.
  • Meanwhile, the Jakarta administration’s large-scale social restrictions (PSBB) have also reduced vehicle traffic on the city’s toll roads, with offices and schools urged to operate remotely to contain the COVID-19 outbreak. “The issue was the policy, which forbade people from going outside,” said Donny.
  • “Traffic picked up after the PSBB relaxation.” Jakarta, the first national epicenter of the pandemic, started imposing PSBB measures on 10 Apr 20. The Jakarta administration recently extended a looser, transitional PSBB period from 7-21 Dec 20.
  • “For 2021, our capital expenditure may be very low as some toll roads have been completed. But with some toll roads delayed to 2021, like JORR 2, it may stand between IDR5tr and IDR6tr,” said Eka, referring to the Jakarta Outer Ring Road project.
  • For 2021, the company is set to develop a total of around 70 km in toll roads, the largest project being the 33.12-km Balikpapan-Samarinda Section I and V toll road in East Kalimantan.
  • Sections II to IV began operating in Jun 20. Jasa Marga stated in Aug 20 that it would not start a new construction project at least until 2023, as the company shifted its focus to optimizing revenue from existing toll roads.

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