ASSET RECYCLING ANALYSIS FOR DEVELOPERS AND TOLL SERVICE PROVIDER (CASE STUDY: TRANS SUMATRA TOLL ROAD)

• Main Author: Fajarwanto, Agung
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/64589
• Institution: Institut Teknologi Bandung

PT. Hutama Karya (Persero) ("PTHK") is a State-Owned Enterprises which the government mandates to develop 24 sections of Trans Sumatra Toll Road ("TSTR") referring to Presidential Regulation Number 117 of 2015 concerning Amendments to Presidential Regulation Number 100 of 2014 concerning the Acceleration of Toll Road Development in Sumatra. The construction of TSTR has currently reached 13 sections in the first phase consisting of 5 (five) operation sections and 8 (eight) construction sections with investment cost of Rp136 Trillion, then it will be continued for next phases which is yet financial closed. However, TSTR is economically feasible but not financially feasible due to the low Daily Traffic Volume (“LHR”) so that TSTR is unable to pay interest on the portion of the loan. Moreover, cash flow deficits occurred due to the failure to achieve the LHR plan due to the postponement of the regional development plan by the governments. PTHK's financial performance deteriorated after getting the assignment in terms of financial ratios. Corporate action to improve PTHK's financial performance was carried out by Asset Recycling of the operating segments consisting of Medan – Binjai, Bakauheni – Terbanggi Besar, Terbanggi Besar - Pematang Panggang - Kayu Agung. Based on the potential of default analysis, the release of the three toll roads does not violate the negative covenants listed in the HK Indenture regarding GMTN. Therefore, PTHK can follow up on Asset Recycling with a total proposed fair price valuation of Rp. 34.35 trillion, where PTHK must obtain approval for tariff ratification and concession period extension. Allocation of Asset Recycle fund will be used for debt restructuring of Rp. 24.5 trillion and funding new sections of Rp. 9.8 trillion. To avoid legal problems in the future, PTHK is suggested to consult with other interested parties in terms of governance certainty during the corporate action activities.