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Driving Development

In the heart of Southeast Asia, Indonesia stands as a vibrant tapestry of cultures, landscapes, and aspirations. The nation's journey towards economic growth and modernization has been intricately intertwined with its infrastructure development.


Witnessing the development of modern transportation networks, including highways, railways, ports, and airports that not only facilitate domestic and international trade but also promote tourism and investment, Indonesia's economy gains momentum.


The importance of a robust transportation network becomes increasingly evident.


Massive urbanization and the growing demands of a burgeoning population have underscored the need for well-planned and efficiently managed urban infrastructure.


Amidst this landscape, Jasa Marga (JSMR) emerges as a pivotal player, steering the nation towards enhanced mobility and progress.


With the bustling activity of toll roads, economic endeavors thriving, traffic being reverted to pre-pandemic levels, we see a palpably optimistic sentiment surrounding the domestic economy.


This positive sentiment is vividly reflected in JSMR's 1H23 financial performance.



Source: Company, Sucor Research


JSMR recorded a revenue of IDR 8.9 trillion in 1H23, marking an 18.3% increase from the same period in the previous year, which amounted to IDR 7.5 trillion.


Consistently solidifying its revenue streams, JSMR maintained its prominence in toll collection, with this segment contributing significantly by amounting to a substantial IDR 6.13 trillion, up from previous year's achievement of IDR 6.07 tn.


The net profit reached IDR 1.15 trillion, signifying a substantial 56.3% surge when compared to the IDR 734.7 billion achieved in the corresponding period of 2022.


Source: Company, Sucor Research


JSMR possesses a total of 36 road concessions spanning 1,736 kilometers and is responsible for managing 1,260 kilometers of active toll roads.


Its business operations are widespread throughout Indonesia, with the majority of toll roads already interlinked, yielding positive outcomes in terms of enhanced connectivity, leading to increased traffic and growth in toll revenue.


Within JSMR's portfolio are 13 well-established toll road concessions that generate consistent cash flow. These mature assets serve as a strong foundation, facilitating the support of 23 new toll road concessions under various subsidiaries.


Source: Company


The contribution of toll revenue to the total revenue generated by new toll roads, managed through subsidiaries and joint ventures, has shown a consistent increase over time due to the impact of incorporating these new toll roads into operations.


During 1H22, the contribution from these new toll roads stood at 46.44%, and it climbed to 47.44% in 1H23.


In the same period, toll revenue at the parent level, specifically from mature toll roads, saw a 5.53% YoY increase in 1H23 compared to 1H22. Simultaneously, toll revenue at the level of subsidiaries and joint ventures, which involve new toll roads, experienced a 6.72% YoY increase.


Source: Company, Sucor Research


JSMR's toll road traffic is poised to experience mid to high single-digit growth in 2023, driven by an anticipated increase in mobility throughout the year.


There is also further potential for toll rate adjustments, considering that certain sections of toll roads last saw tariff adjustments in 2019.


With the government having lifted the pandemic status, we remain positive for JSMR's 2023 performance, particularly due to an expanding volume of vehicles using the toll road network.


Moreover, JSMR continues to be the market leader in the toll road industry, and with the operation of new JSMR toll roads in 2023, such as Serpong-Cinere section, this is expected to bolster the company's future revenue.



Stay tuned for our full report...


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