PT Jasa Marga (Persero) Tbk

To support the economic growth, on March 1, 1978, the Government issued Regulation number 4 year 1978 on the establishment of PT Jasa Marga (persero) Tbk. Indonesia to provide a reliable road network in the country. Jasa Marga's 1978-constructed Jakarta-Bogor-Ciawi Toll Road is a milestone in the history of the toll road industry in Indonesia. At an earlier stage of its establishment, besides functioning as an operator, the Company also had an authority on toll roads in the country. Until 1987, Jasa Marga has been the only toll road operator in Indonesia funded by the Government through foreign loans and bond issuance. At the end of the 80s, the Government of Indonesia began to include private sectors to participate in developing the toll road through the Build, Operate and Transfer (BOT) mechanism. During the 90s, the Company facilitated private investors instead, which mostly failed to realize their project. JORR and Cipularang were ones of the toll roads taken over by the Company. The government issued Law number 38 year 2004 on Road which replaced Law number 13 year 1980, along with the issuance of Government Regulation number 15, which gives more specific regulations on toll roads. This have brought changes in the toll road business mechanisms including the establishment of the Toll Road Regulatory Agency, as well as the two-year adjusted toll tarif rates by the Minister of Public Works. Therefore, the full authorization is given back from the Company to the Government. Consequently, Jasa Marga which functions both as a toll road operator and developer requires a concession license from the Government.