India's ITNL in two Indonesia toll road projects, US$550 million

IL&FS Transportation Networks (India) Limited (ITNL) (previously Consolidated Transportation Networks Limited/CTNL), India's infrastructure giant, has secured investment approval from Indonesia's Investment Coordinating Board to invest in two toll road projects worth US$552 million.

CTNL is the partner in two companies, PT Pejagan Pemalang Toll Road Corporation and PT Pemalang Batang Toll Road Corporation. Partners in these companies are Indonesian PT Sumber Mitra Jaya and PT Punj Lloyd Indonesia (a subsidiary of Punj Lloyd Ltd (India).

PT Pejagan Pemalang Toll Road Corporation would build the 57 KM toll road connecting Pejagan and Pemalang with US$322 million investment, while PT Pemalang Batang would build the toll road connecting Pemalang and Batang with US$230 million investment, all in Central Java province. No information on who own PT Sumber Mitra Jaya.

But a blogger wrote to me that Sumber Mitra Jaya is owned by Pak (Mr) Gon (established player in Contracting business). They are in coal mining (Kideco), coal contract mining (Kideco, Berau, etc) and many other large projects. Pak Gon is an Indonesian businessman with Indian background. No wonder its office at Graha Irama owned by Indorama Group (another Indonesian group with Indian background).

Whatever. But ITNL's involvement could be considered the biggest investment from Indian companies in years.

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