JASA MARGA ALLOCATES RP4.7 TRILLION FOR CAPITAL EXPENDITURES

Jakarta, May 4 (ANTARA) - State-owned road construction firm PT Jasa Marga is allocating Rp4.7 trillion for capital expenditures this year, PT Jasa Marga president director, Frans Sunito said.

"The Rp4.7 trillion capital expenditures increased this year if compared with that in 2008 which stood at Rp1.7 trillion," Frans Sunito said here on Monday.

He said that about 30 percent of the capital expenditures for this year would be obtained from the company's internal sources while the remaining 70 percent were expected to come from banking loans.

Sunito said that Jasa Marga's toll road projects for 2009 in Indonesia included the Bogor ring road, Semarang-Solo, Gempol-Pasuruan, JORR II Serpong-Kunciran, JORR II Kunciran - Cengkareng, JORR W1 (Kebon Jeruk Penjaringan), JORR w2 (Ulujami-Kebon Jeruk) and Surabaya-Mjokerto toll raods.

He said that about Rp2.35 trillion of the capital expenditure funds would be used to construct new toll road sections while the remaining ones for toll road upgrading and routine operations.

Jasa Marga has obtained a stand-by loan commitment from three banks worth Rp7 trillion which would be used to fund three toll road projects, which are expected to be completed in 2011.

They will disburse the funds in stages. "In the present economic crisis it would be easier to obtained fund from banks," he said.

Previously, the company announced its business income in 2008 which was worth Rp3.35 trillion, which increased 26 percent from Rp2.65 trillion in 2007.

Sunito said the company also booked a net profit of Rp707.80 billion in 2008, which increased from Rp277.98 trillion in 2007.

For this year, the company expected to experience a ten percent growth compared with that in the previous year.

"The income will slightly slow due to the fact that toll road tariffs would not be too high amid the decline in the four-wheel vehicle demand," he said.