MPTC expands across Southeast Asia

Metro Pacific Tollways Corp. (MPTC) is set to significantly enhance its infrastructure portfolio with a major investment in Indonesia’s Trans-Java Toll, according to a report by BusinessMirror.

Through a partnership with Singaporean institutional investor GIC, the Filipino expressway operator acquired a 35-percent stake in the Jasamarga Transjawa Tol (JTT) through a $1-billion investment.

With this investment, MPTC’s total road network now stands at 1,130 kilometers, spanning the Philippines, Indonesia, and Vietnam.

“This deal fortifies MPTC’s goal to expand in Southeast Asia and enhance our infrastructure portfolio. This expansion in Indonesia aligns well with our commitment to improve our regional presence in toll road operations,” MPTC President and CEO Rogelio L. Singson said.

JTT comprises a network of 13 toll roads stretching 676 kilometers across West Java, Central Java, and East Java. This network, often referred to as Indonesia’s crown jewel, facilitates the movement of 850,000 vehicles daily on Java Island, Indonesia’s economic powerhouse.

Singson added that the investment will enable JTT to raise capital, maintain a healthy leverage level, and continue expanding its toll road networks across Indonesia.

MPTC and GIC invested in PTT through PT Margautama Nusantara (MUN) and PT Metro Pacific Tollways Indonesia Services (MPTIS).

In 2023, GIC acquired a 33-percent stake in MUN for $209.9 million, reducing MPTC’s stake in MUN to 60.3 percent.

HSBC served as the joint financial advisor to MPTC and the sole financial advisor to GIC for the transaction. BCA Sekuritas acted as the joint financial advisor to MPTC.