Metro Pacific Tollways Corp. (MPTC), the toll road arm of Metro Pacific Investments Corp. (MPIC), expects to generate an additional P30 billion in annual revenues from its Trans-Java Toll Road venture in Indonesia.
MPIC chairperson and president Manuel V. Pangilinan bared the projected financial boost from the venture in an interview with reporters last week. In 2023, MPTC alone accounted for a substantial portion of its parent company’s P19.92 billion profits, contributing P5.79 billion.
“(Signing) is likely to be (this) week in Jakarta (Indonesia). They are in final documentation. A few changes are still happening and financial closing will be three months after signing,” Pangilinan said.
According to Pangilinan, the signing would have happened last week if not for some “last-minute” issues on documentation.
Allow for time
“Remember Jasa Marga is a state-owned enterprise. They have their systems of approval. It takes a bit more time than the private sector,” he said.
While his group remains open to expanding its international network, Pangilinan said he wanted to prioritize the completion of their investment in the Indonesian tollways before pursuing additional bids.
MPTC tapped a consortium led by Singapore’s GIC to bid for a 35 percent stake in Jasamarga Transjawa Tol, which oversees toll road networks across Central Java, West Java, and East Java.
The Trans Java Toll Road, which spans over 676 kilometers, constitutes 56 percent of the cumulative length of toll roads owned by the Jasa Marga Group. This vital infrastructure accommodates a substantial traffic volume of approximately 900,000 vehicles.
Previously, Pangilinan disclosed that the closing of the Trans Java Toll Road bid was an essential piece in finalizing the planned merger of MPTC’s toll road assets with San Miguel Corp.’s expressways units.
MPTC and SMC both agreed to consolidate their toll road business aimed at further easing gridlock in areas where they operate. The 50-50 merger includes Pangilinan Group’s assets overseas.
