BOD Report
"2022 was an important year for PT Jasamarga Transjawa Tol (PT JTT), the company were able to conduct restructuration plan in the form of spin off to continuously improve company's financial performance and sustainability"
Dear Shareholders and Stakeholders,
We would like to express our greatest gratitude to the presence of God Almighty who has bestowed grace on all of us. 2022 was an important year for PT Jasamarga Transjawa Tol (PT JTT), the company were able to conduct restructuration plan in the form of spin off to continuously improve company’s financial performance. The Board of Directors and employees of PT Jasamarga Transjawa Tol (JTT) committed to provide company’s performance to achieve company’s target. Hereinafter, we would like to deliver our Annual Report for the fiscal year ending on December 31, 2022.
TOLLROAD INDUSTRY AND COMPANY BUSINESS DEVELOPMENT IN 2022
In 2022, the toll road industry is projected to be better in previous years. One of the indicators is toll road activities that has started to get busy after the pandemic COVID-19. It can be seen on the economic recovery, easiness on the social restriction after pandemic, and the increasing growth of infrastructure development. By doing so, we are able to open access and improve area connectivity to increase efficiency and productivity.
In accordance with Toll Road Regulatory Agency (BPJT), until June 2022 there are 2.493,42 km toll road that have been operated in Indonesia and are spread in Sumatera, Kalimantan, Java and Sulawesi. Apart from that, there are 41 toll road spanning 2500 km which are expected to be built by 2024. Until now, there are 66 toll road that have been officially registered and 30 toll road that are currently under construction. In other hand, the Ministry of Public Works and Housing (PUPR) has opened toll road investment potential valued of Rp 82 trillion. Investment interest in toll road is still high in accordance to the toll road development. As a result of toll road being one of the backbones of national economy.
We assess that PT Jasamarga Transjawa Tol have growth potential, considering until now PT Jasamarga Transjawa Tol has operated 676 km Toll Road that span from Jakarta to Banyuwangi, East Java. We believe the potential of traffic growth will increase considering the ownership of PT Jasamarga Transjawa Tol have connected various strategic area from ports, airports, industrial area, and tourist destinations. This will certainly drive local economy growth to improve toll road traffic volume and trade value.
It is predicted in the future, PT Jasamarga Transjawa Tol will have significant potential synergy to PT Jasa Marga (Persero) Tbk. PT Jasa Marga (Persero) Tbk carried out a spin off and transferred its old shares to PT Jasamarga Transjawa Tol to provide revenue growth for PT Jasamarga Transjawa Tol. Given this effort, we are certain that PT Jasamarga Transjawa Tol are able to optimize dividend to PT Jasa Marga (Persero) Tbk and another shareholder in PT Jasamarga Transjawa Tol.
STRATEGI
In the strategic planning process, the Board of Directors have a key role in the strategic formulation and company’s policy. This process started by discussion within the members of Board of Directors to give strategic review, determine strategic relevance and make improvements of current strategies. Throughout the discussion, we review risks from all factors that have an impact on the industry and company. Beside that, we also review competitive advantages of the company. During the process, the Board of Commissioners give informal input and perspective about the industry risk and recommend strategy that could be implemented to the company.
COMPANY PERFORMANCE
The operational and financial company’s performance are influenced by global and national economic conditions which are getting better although the company’s is still in uncertain situation. We recorded traffic transaction volume in 2022 amounted to 399 million transactions, reached 0.3% from the initial plan amounted to 398 million transaction. In terms of growth trend, the traffic transaction volume shows increment amounted to 12.23% compared to the realization in 2021. This was caused by COVID-19 case trend which are significantly decreasing and mobilities that are increasing aligned with the implementation of restriction in the society (PPKM) in some of areas in Java.
CHALLENGES
Throughout year 2022, the company manage to overcome various external conditions which are getting better and conducive. Dynamic changes in the economic policy influence the toll road industry to encourage company to be agilely adapt in achieving performance target. The company was able to overcome challenges and mark company’s growth in 2022.
It is certain, the economic condition in 2022 positively affect Trans Jawa toll and influence company’s revenue. The economy recovery also influences the rate increment that is set by Bank of Indonesia (BI) until the end of 2022, the rate has been increased 5.75% basis point which are directly influence the company’s interest expense.
We focuses in maintaining financial ratios based on the required limit by the creditor. The company is able to maintain a minimum Interest Coverage Ratio (ICR) of 5.58 and Debt to Total Equity (DER) of 0.48.In mitigating this aspect, we attempt to maintain financial performance by continuously to innovate in financial aspect specifically in the funding scheme and corporate action program of subsidiaries one of it is with refinancing to maintain and improve company’s EBITDA margin. Beside that, we also continuously maintain minimum service standard by implementing efficiency in operation expenses, human resource expenses, general expenses, and administration.
DEVELOPMENT OF HUMAN RESOURCES AND INFORMATION TECHNOLOGY
In the future, the economic growth is massive encourages the company as an attempt to continue provide human resources with integrity and have competency based on the organization need. We also continuously increase the capacity of human resources by improving competency programs through mentoring, coaching, and training.
CORPORATE GOVERNANCE
We believe that result of the company performance in 2022 is not seperated by our commitment in improving Good Corporate Governance (GCG) in the company environment. We continously attempt the implementation of Good Corporate Governance Principle in the business based on the shareholder direction. The Good Corporate Governance (GCG) principles include transparation, accountability, responsibility, independency and justice that is implemented in the companys environment well, as a commitment to attain companys vision and mission
SUSTAINABILITY
The implementation of sustainability in the company manage to establish harmony in relation to all of the stakeholder. Through Subsidiaries, the company have developed Corporate Social Responsibility (CSR) programs which balances out environmental aspects, social and economy to create environmental friendly and sustainable operational business which have a good impact in improving quality of life.
We are committed to embody sustainability in operational business activity as a respond to future challenges. Our commitment as an effort to embody the implementation of principle responsibility therefore there is a positive image towards the company in the point of view of society and and all stakeholders .
BUSINESS OUTLOOK AND CHALLENGES AHEAD
The threat of global recession and economic conditions is predicted to happen in 2023. With the various data and economic indicator, Indonesian economy will raise until 5% in 2045. Indonesia is also positioned to be the country with the largest economy in the world.
There are four foundations in supporting Indonesian economy which are down streaming program towards various of products originated from human resources aligned with the industrialization developments, strengthening the agriculture sector made Indonesian as a world food barn, creative and innovative human resources, and variety in creative industry through start up by helping Indonesia to improve national economy.
CLOSING AND APPRECIATION
Year 2022 was a challenging year which gives breath of fresh air to the industry aligned with the economic growth. Therefore, on behalf of the Board of Directors, we appreciate all of the staff that have been dedicated with their work, by that PT Jasamarga Transjawa Tol were able to go through year 2022 well.
Not to forget, we also want to convey respect and thank you to the Board of Commissioners and the shareholders for its supervision and direction in guiding us to execute mandate and deliver best values. We also would like to thank all business partner, regulator and stakeholder so that PT Jasamarga Transjawa Tol are able to stand firm and continously to develop as a company that have achievement and integrity.
We are optimistic, PT Jasamarga Transjawa Tol will strive to the future in order to achieve goals which are stated in the companys vision and mission.