Foreign Investors Eyeing Trans Java Toll Road

TEMPO.CO, Jakarta - Toll roads in Java that are included in the Trans Java network have become a magnet for foreign investors. A Hong Kong firm recently invested in two toll roads; Solo-Ngawi and Ngawi-Kertosono-Kediri.

Kings Key Limited (KKL) is a subsidiary of Road King Expressway International Holdings Limited. Road King Expressway International Holdings Limited CEO, Willy Chow, said that the two toll roads are their first investment destination in Indonesia as they are part of the Trans Java toll road network.

"In Indonesia, the most potential [places] to invest are located in Java. And for toll roads is Trans Java. We see how China has invested a lot [in infrastructure], and we hope to be able to support social and economic development through infrastructure well," he said on Wednesday, December 18.

Chow said his company actually has eyes on eyeing three toll roads in Trans Java, but only two have been actualized. He declined to name the other toll road his company is interested in.

"Next year we plan to invest one or two more investments in Southeast Asia. However, personally I am more interested [to invest] in Indonesia next year," Chow added.

Earlier, Canada Pension Plan Investment Board (CPPIB) and PT Bhaskara Utama Sedaya (BUS) announced they had acquired 55 percent of PT Lintas Marga Sedaya (LMS) shares from PLUS Expressway International Bhd, the international business line of Malaysian firm UEM Group Bhd.

The investment in Cipali toll road marks the debut of the Canadian pension fund manager in Indonesia's infrastructure sector. The acquisition also ended the Malaysian investor's era as a majority shareholder in the Cipali toll road business.

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