Indonesian toll road operator PT Jasa Marga Tbk has earmarked 4.7t rupiah ($407m) for capital expenditure this year, four times the 2008 sum, for expansion and share purchases.

President Frans Sunito said that shareholders had approved the management’s plan to build eight new toll roads over the next three to four years, at a cost of about 15t rupiah.

Jasa Marga plans to increase the length of toll road it operates to 700km, from the current 500km, as a result of the expansion.

Sunito also said 30% of this year’s capital expenditure would be used to increase its stakes in four firms which hold toll-road concession rights. The firm wants to be the majority stakeholder in three of the firms.

Jasa Marga reported net profit of 707.8bn rupiah in 2008 on revenue of 3.35t rupiah earlier on Wednesday.

The state-controlled firm is seen as a beneficiary of the government’s drive to improve creaky infrastructure in order to boost growth in Southeast Asia’s biggest economy.
The government has announced a 73.3t rupiah fiscal stimulus package covering tax incentives and infrastructure projects.

By Daniel Garrun.