Road to Economic Ruin

Bali Jasa Marga Toll Needs to Develop New Revenue Streams to Make Up for Mounting Operating Losses

Now in its fifth year of operations, Bali’s only toll road – Jalan Tol Bali Mandara managed by Jasamarga Bali Tol (JBT) continues to record yearly losses.

The yearly income on the JBT averages around Rp. 165 billion against yearly expenditures of Rp. 191 billion. The resulting loss of around Rp. 26 billion was revealed in a meeting with the Bali Post at Warung 63 in Denpasar. In attendance at the gathering on Thursday, November 29, 2018, were the CEO of JBT, Enkky Sasono Anas Wijaya; accompanied by the Corporate Secretary, Drajad Hari Suseno; and the Director of Finance, Sukariyadi Rudi Meidiyanto.

In breaking down the expenses of running the toll road, Enkky Sasono said principal and interest payments totaled Rp. 136 billion, and operating expenses including staff wages Rp. 55 billion. He said each year the toll road experiences a  deficit of Rp. 31 billion.

Despite current losses, Enkky remains optimistic that the toll road with a concession period of 45 years, the 12.7 kilometer long toll road will soon become profitable.

The JBT is now seeking ways to create new revenue streams, including resurrecting shelved plans to build “Bedawang Nala” - a shopping and tourism center in the shape of a giant turtle at the side of the roadways over what was once protected mangrove. The proposed rest area for restaurants, meeting rooms, and shopping would consume another 5 hectares of mangrove bottom land in Benoa Bay.

Plans are also being discussed to create a solar energy farm that would create power units that could be sold to the surrounding community.

Also under review is a financial restructurization of the JBT. To date, the borrowings have been done on the basis of a floating rate loan. JBT is now seeking a fixed-rate loan that would see the loan rate reduce from 9.7% to something between 8-8.5% per year.

The toll roads management will also seek new cash injections by selling bonds on the stock exchange. JBT, however, can only obtain Rp. 800 billion on the bond market. In order to raise fresh capitals in excess of Rp. 1 trillion, the company would have to build the additional shopping and tourism facility envisioned in the Bedawang Nala.

Responding to those suggesting the toll road be made free-of-charge, the Corporate Secretary of JBT Drajad Hari Suseno said providing investors received their investment back plus a reasonable return on investment, the toll could be made free-of-charge. Adding, “At present, 70% of the toll roads expenditures are for the repayment of debt and interest.”

He warned that repair and maintenance of the toll road must also be taken into consideration.

The current shareholders of the Mandira Toll Road are:

  • Jasa Marga Bali Toll                                    55%
  • Pelindo III                                                 17.5%
  • Angkasa Pura                                              8.0%
  • ITDC                                                          3.0%
  • Wijaya Karya                                               0.4%
  • Hutama Karya                                             3.0%
  • Adi Karya                                                    3.0%
  • Province of Bali                                            8.01%
  • Badung Regency                                          8.01%