Business Partnership Nusantara Infrastructure with JEXWAY & W-NEXCO
Nusantara Infrastructure has been appointed as JEXWAY and W-NEXCO overseas business partner, showing a high degree of credibility in the industry. JEXWAY is a subsidiary of W-NEXCO, which is a Japanese overseas investment company.
20 December 2014
Author: Administrator
JEXWAY specializes in overseas investment for toll road business, such as providing Japanese advanced technology, operation and maintenance specialty, and asset management. JEXWAY is a subsidiary company of W-NEXCO, which is a Japanese state owned expressway company who operates 3,290 km of expressway.
The company is 100% owned by the Japanese government and was firstly established in 1956. For more than 50 years, W-NEXCO group is known as a reliable company in developing a Japanese expressway. NEXCO Group currently operates more than 9,000 km of expressway in Japan.
General Manager Corporate Affairs of PT Nusantara Infrastructure Tbk., Deden Rochmawaty said, business cooperation with Japanese investors as part of the company commitment provides maximum contribution to the shareholders and all stakeholders. The company will continue to forge alliances with global partners. Business partnership with JEXWAY and W-NEXCO, definitely will give a greater opportunity to tap various potential infrastructure projects in Indonesia.
"We are grateful that global investors have a high confidence in us. To date, Nusantara Infrastructure has cooperated with world-class companies. In addition to proving that the company’s Good Corporate Governance is well implemented, such partnerships have become the company’s strategy to anticipate future infrastructure projects which currently initiated by the Jokowi governance, by cooperating with competent and experts in toll road development,” said Deden.
Cooperation with JEXWAY and W-NEXCO raises the credibility between the company and other global investors. Previously, Nusantara Infrastructure successfully collaborated with CapAsia and Providence Equity Partners.
In BSD toll road management, collaboration between JEXWAY and W-NEXCO altogether will own a total of 4.18% shares from the total shares issued and fully paid in the company. Furthermore, Nusantara Infrastructure through its subsidiary, MUN will retain the remaining ownership total of 88.94% company’s stakes. BSD toll road is a 7.25 km strategic toll road that connects between Pondok Aren and Serpong area. Daily traffic volume trends show a significant increase from year to year. Throughout the year 2013, the average daily traffic increased from the previous year as much as 6.89% or equals to 84.665 vehicles.
The signing ceremony was held in Nusantara Infrastructure office represented by Chief Executive Officer (CEO) of PT Nusantara Infrastructure, Ramdani Basri with Chief Representative of Indonesia Representative Office W-NEXCO, Yoshihiro Wada, and JEXWAY Director, Hiroshi Saito, on last Thursday (18/12). The event was a completion step taken from the signing of the Sales and Purchase of Shares Agreement (SPA) between both parties that have been signed on 18 November 2014 in Osaka, Japan.
Deden expected that the inclusion of JEXWAY and W-NEXCO, Nusantara Infrastructure can improve its business development and management in toll road sector. Nevertheless, the transaction will also strengthen Nusantara Infrastructure toll road business development in Makassar. Should the project be a successful as a Pilot Project, it will therefore serve as a sample project for toll road sector in Indonesia.
"Toll road business continues to offer good prospect and growth, along with the increasing demand of middle class in Indonesia. Higher demand will create uplift in vehicle ownership, thus followed by demand in access and faster mobility, which infrastructure in toll road sector would be the best solution. Consequently, toll road management should be synergized with competent and professional investors, such as JEXWAY and W-NEXCO," said Deden.
Currently Nusantara Infrastructure has four operating toll roads, managed by its subsidiary, PT Margautama Nusantara (MUN), which as follows Bintaro Serpong Damai (BSD) and Jakarta Lingkar Baratsatu (JLB) in Jakarta. While the two other portfolios are located in Makassar area, Jalan Tol Seksi Empat (JTSE), and Bosowa Marga Nusantara (BMN). Nusantara Infrastructure holds 74.97% and acts as the majority shareholder in PT Margautama Nusantara (MUN). JTSE and BMN toll roads are connecting Makassar inner city ring road and provide direct access to Sultan Hasanuddin International Airport and the harbor. JTSE is the only successfully toll roads built as the implementation of Infrastructure Summit 2005.
Last but not least, this transaction is a positive achievement for Nusantara Infrastructure, because JEXWAY and W-NEXCO are very selective in choosing a strategic partner to develop its business in Southeast Asia. Moreover, it was the first time JEXWAY has successfully collaborated with other companies outside Japan. Partnering with Nusantara Infrastructure as their first partner showed a good business credibility for both parties.
