17 November, 2016
The Government and Parliament of the Republic of Indonesia have approved the Amended State Budget for 2016 (APBNP 2016) in which the government will increase its capital in 21 state owned enterprises, including 4 state owned enterprises which are listed on the Indonesian Stock Exchange (IDX). The capital increase will be used for expansion of the enterprises to support infrastructure development in Indonesia. One of the state owned enterprises which are listed on IDX, PT Jasa Marga (Persero) Tbk (“Jasa Marga”), an Indonesian state owned enterprise which is engaged in planning, building, operating and maintaining toll roads, requires substantial funding to continue its expansion of the toll roads in the government program for 1,000 kilometers of new toll roads. To this end, Jasa Marga will enlarge its capital structure by an equity increase through a rights issue of IDR 1.8 trillion (equivalent to USD 136 million) with Rp1.250 trillion additional capital from the Government, which issue is scheduled for completion at the end of 2016.
In addition to the increase of capital and the company’s capacity for business expansion, the funds of the rights issue will be used to enhance the company’s ability to receive financing from banks and other financial institutions.
In this Jasa Marga corporate action, the HPRP Capital Market team, led by Partner Erwin Kurnia Winenda, and assisted by Ishak Ricardo Pasaka (Senior Associate), Yohanes (Associate), and Antonio Adiel Nugraha (Associate), has been appointed by Jasa Marga to be its capital market legal advisor.
HPRP has been requested to assist Jasa Marga in legal aspects of its right issue in HPRP Engaged by Jasa Marga to Provide Legal Assistance on Rp1.8 trillion Rights Issue The Government and Parliament of the Republic of Indonesia have approved the Amended State Budget for 2016 (APBNP 2016) in which the government will increase its capital in 21 state owned enterprises, including 4 state owned enterprises which are listed on the Indonesian Stock Exchange (IDX). The capital increase will be used for expansion of the enterprises to support infrastructure development in Indonesia. One of the state owned enterprises which are listed on IDX, PT Jasa Marga Volume 1, Issue 1 accordance with capital market regulations, regulations of the Financial Services Authority and the standards for capital market transactions.
For further information, please contact:
Al Hakim Hanafiah, Partner, Hanafiah Ponggawa & Partners
ahhanafiah@hplaw.co.id
