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The Road to Profitability

Baliís First Toll Road Aiming for Profitability Only After 10 Years of Operations


Bali News: Bali, Indonesia, PT Jasa Marga Bali Tol, Akhmad Tito Karim, break even point
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(7/5/2013)

The CEO of PT Jasa Marga Bali Tol, Akhmad Tito Karim, told Seputarbali.com that Bali’s first toll road is only projected to turn a profit after 10 years of operations.

Tito said his company, who operated the Bali toll road, hoped that Bali’s newest highway would benefit the Island’s economy that has been stymied as of late due to severe traffic congestions. He called on the Balinese to join in safeguarding the toll way, adding: “both the provincial government of Bali and the regency of Badung are investors. Both have shareholdings of 8 percent and have invested Rp. 100 billion.”

Tito explained how private investors do not find investing in toll roads sufficiently attractive. The new toll road in Bali is expected to only become profitable after 10 years of operation.

He continued, explaining that other factors could delay the project’s eventual profitability, including a failure to achieve the targeted 40,000 vehicles passing over the road every day.


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