Metro Pacific Tollways Corp. (MPTC) and its Singapore-based partner, GIC, have poured in an investment of $1 billion or approximately P58.62 billion at current rates in exchange for a 35 percent stake in Indonesian state-owned Jasamarga Transjawa Tol (JTT).

MPTC, through its subsidiaries PT Margautama Nusantara (MUN) and PT Metro Pacific Tollways Indonesia Services (MPTIS), along with GIC, formally signed the investment agreement last Friday, 28 June.

“This deal fortifies MPTC’s goal to expand in Southeast Asia and enhance our infrastructure portfolio. This expansion in Indonesia aligns well with our commitment to improve our regional presence in toll road operations,” MPTC President and CEO Rogelio L. Singson said on Monday.

Previously, businessman Manuel V. Pangilinan, who sits as chairman and president of Metro Pacific Investments Corp., the parent firm of MPTC, said the JTT venture could generate about P30 billion in annual revenues for the toll company. 

HSBC served as the joint financial advisor to MPTC and the sole financial advisor to GIC for this transaction, while BCA Sekuritas acted as the joint financial advisor to MPTC. 

With JTT toll roads now under its portfolio, MPTC’s local and international network now boasts a 1,300-kilometer network. 

JTT is a subsidiary of the leading Indonesian state-owned toll road operator, PT Jasa Marga (Persero) Tbk (Jasa Marga). 

It is a network of 13 toll roads in the provinces of West Java, Central Java, and East Java. The combined 676-kilometer-long road allows the flow of 850,000 vehicles daily across Indonesia’s Java Island. 
 
Last year, GIC purchased a 33 percent stake in MUN for $209.9 million or about P12.30 billion at current rates. Hence, MPTC’s stake in MUN has decreased to 60.3 percent, while it continues to hold the majority share. MPTC also partnered with GIC in bidding for JTT.