JAKARTA Jan 27 Indonesian property developer PT
Bumi Serpong Damai, a unit of Singapore-listed
Sinarmas Land Ltd, has set up a joint venture to build
toll roads which could boost the prices of its surrounding
The company aims to work with Kompas Gramedia Group and PT
Astratel Nusantara to develop the 36-kilometre Serpong-Balaraja
toll road on the outskirts of Jakarta, Bumi Serpong Director
Hermawan Wijaya told reporters on Monday.
"We want to go into the toll-road business because this will
benefit our property projects," Wijaya said. He declined to
disclose the expected investment value for the toll road
project, but it has been estimated to cost around 5 trillion
rupiah ($410.5 million).
The winning bidder for the concession to the
Serpong-Balaraja toll road has not been announced, but Bumi
Serpong, which initiated the project, stands a high chance as it
has the right to match a competing offer, Samuel Sekuritas said
in a note on Monday.
The brokerage added that the new toll road is expected to
increase the value of Bumi Serpong's BSD City, a residential,
office and commercial project in the south-west of Jakarta.
($1 = 12,180.00 rupiah)
(Reporting by Fathiyah Dahrul; Writing by Eveline Danubrata
Editing by Matt Driskill)