ACCElERATION - Indonesia-Investments...239 Whistleblowing System 240-241 Jasa Marga Commitment in...

2016 Annual Report

2016ANNUAlREPORT

DEVElOPMENTOF INFRASTRUCTURE

ACCElERATION

2016 Annual Report

Management Discussion And Analysis

Board of Commissioners Report

DirectorsReport

JSMR Stock and Jasa Marga Bond

Jasa MargaProfile

Development of New Projects

PT Jasa Marga (Persero) Tbk. Laporan Tahunan 2016

Ikhtisar2016

Saham JSMR dan Obligasi Jasa Marga

Laporan DewanKomisaris

Laporan Direksi

Profil Jasa Marga

Analisa dan Pembahasan Manajemen

Pengembangan Proyek Baru

In 2016, The government’s target on Indonesia’s economic growth is around 5% and to grow by 5.1% in 2017, depending on the effectiveness of both domestic and foreign policies and the success of economic reforms.

Government has also increased the portion of infrastructure spending by reducing the infrastructure gap between regions which can also accelerate economic growth in Indonesia.

To boost economic growth, the availability of infrastructure is also one indicator of improved productivity and efficiency, where people can access to resources. The role of infrastructure to the region development can make a significant contribution in terms of economic, social, and environmental sustainability.

Acceleration of infrastructure is one of the priority programs of the Government, one of which is the construction of toll roads, especially Trans Java Toll Road. The government has targeted the development of infrastructure through the addition of 1,000 km toll roads. Jasa Marga is committed in supporting the target achievement through the construction of potential toll roads.

ACCElERATION

1PT Jasa Marga (Persero) Tbk. 2016 Annual Report

Consolidated Financial Report

AppendinxStatement Of Members Of Directors And Members Of Board Of Commissioners On The Responsibility For Annual Report 2016Pt Jasa Marga (Persero) Tbk.

Human Capital Management

Good Corporate Governance

Corporate Social and EnvironmentalResponsibilities

To build a nation, Jasa Marga is present to encourage and contribute our best for the people of Indonesia. As part of Indonesian development and directly involved in national strategic projects in the field of highway infrastructure, as well as the contribution of increased state revenue every year.

Jasa Marga as toll road operator and leading toll road developer in Indonesia has an important position in supporting economic growth through the construction and operation of toll roads as the infrastructure for the distribution of goods and services as well as the infrastructure in forming the structures of the region space.

Jasa Marga is currently managing 593 km of toll roads in Indonesia. In addition, the Company continues to add toll road concessions to a total of 1,261 km at the end of 2016. The entire new toll project is targeted for to be completed in 2019. The acceleration and expansion of the construction of this highway is an ongoing effort of the Company and in line with the Vision and Mission of Jasa Marga to remain as a trusted and reliable leader in Indonesian toll road industry.

With the passion and commitment to build the nation through the experience, competence, competitive and qualified resources, Jasa Marga is ready to boost the acceleration and expansion of infrastructure, especially toll roads throughout Indonesia to boost economic growth in the region and nationally.

Pembangunan Jembatan Tuntang, Jalan Tol Semarang-Solo.

OF INFRASTRUCTURE DEVElOPMENT



DirectorsReport


Jasa MargaProfile


2 PT Jasa Marga (Persero) Tbk. 2016 Annual Report

The Acceleration of Infrastructure Development

2-3 Contents

4-73 Jasa Marga Profile

4-5 Jasa Marga Identity6 Jasa Marga Logo

7 Jasa Marga Vision & Mission and Strategy8-11 Jasa Marga Values and Culture

12-19 Jasa Marga at a Glance 12-13 Jasa Marga Milestones

14-15 A Brief History of Jasa Marga

15 Changes in the Company’s Name

5, 15 Business Activities

17 Development of Toll Road Industry in Indonesia

17-19 Development of Jasa Marga Business

20-22 Jasa Marga Organizational Structure

23-33 Main Shareholders, Entities, Subsidiary and Associated Companies

23 Jasa Marga Group Corporate Structure

24-33 Subsidiaries

23 Associated Companies

34-38 Areas of Operations and New Toll Road Projects

40-41 Profile of Human Capital40 Number of Employees

40 Level of Education

41 Ages of Employees

42-57 Profile of Jasa Marga Board of Commissioners, Directors, Committees and Senior Officials

42-43 Profile of Board of Commissioners

44-45 Profile of Directors

46 Profile of Audit Committee

47 Profile of Nomination, Remuneration and Risk Committee

48-57 Profile of Jasa Marga Senior Officials

58-60 Addresses of Jasa Marga Branch Offices, Subsidiaries and Associated Companies

60-62 Capital Market Supporting Profession and Institutions

63 Jasa Marga Website

64-85 2016 Overview

64-65 Financial Highlights 2012-2016

66 Operational Highlights 2012-2016

68-69 Milestones in 2015

70-73 Awards and Certifications

74-82 Shares JSMR and Jasa Marga Bonds

74 Shares JSMR74 Chronology of Shares JSMR Listing

76-81 Highlights on Shares JSMR

76 Information on Trade Price and Volume of Shares JSMR

78 Shares JSMR Volume and Price in 2015 and 2016

79 Indices with Shares JSMR as Constituent

80 Capital Market Condition and Performance of Shares JSMR in 2016

81 Composition of Shares JSMR Ownership

81 Information on Major and Controlling Shareholder

81 Shares JSMR Shareholders with Ownership 5% or More

81 Shares JSMR Shareholders with Ownership Less Than 5%

82 Ownership of Shares JSMR by Board of Commissioners, Directors and Employees

82 Twenty Largest Shareholder of JSMR

83-85 Jasa Marga Bond83 Chronology Jasa Marga Bonds Issuance

84 Jasa Marga Bonds Outstanding in 2015 and 2016

85 Ten Largest Jasa Marga Bondholders

86-93 Board of Commissioners Report

87 Changes in the Composition and Distribution of Tasks of Board of Commissioners in 2016

88 Performance of Board of Commissioners in 2016

88 Work Program, Meetings, Frequency and Means of Giving Advice from Board of Commissioners to the Directors

88-89 Performance Assessment of Board of Commissioners and Compliance to Implementation of Good Corporate Governance

89-91 View on the Company’s Business Prospect Managed by the Directors

89-90 Implementation of the Company’s Articles of Association Perseroan, Rules and Regulations

91 RKAP and Appointment of Public Accounting Firm

91 Supervision of Implementation of the Company’s Strategies

92 Evaluation on the Performance of the Directors on the Management of the Company in Accordance to RKAP

92 View on the Implementation of Good Corporate Governance

92 Compliance to Rules, Regulations and Internal Control

93 Implementation of Principles of Good Corporate Governance

94-101 Directors Report

96-97 The Company’s Strategies and Strategic Policies

97-99 Performance Analysis of the Company97-98 Comparison between the Company’s

Performance Target and Achievement

99 Obstacles Faced by the Company

99 The Company’s Business Prospects

100 Implementation of Sustainable Corporate Governance

100-101

Changes in Composition of the Directors

102-177

Management Discussion and Analysis

104 General Review

104 Performance Review of the Company Compared to the Toll Road Industry

105-128

Operational Review by Business Segment

105 Basis of Implementation of Jasa Marga Business Segment

105-127 Business Segment of Toll Road

128 Business Segment of Other Businesses Development

129 Comprehensive Analysis of Financial Performance

145 Current Assets, Non-Current Assets and Total Assets

157 Short-Term Liabilities, Long-Term Liabilities and Total Liabilities

168 Equity

129 Consolidated Statements of Comprehensive Income

130 Operating Revenues

134 Operating Expenses

140 Operating Income

142 Income for the Year

143 Other Comprehensive Revenues

144 Comprehensive Income for the Year

170 Profitability Ratio

169 Consolidated Statements of Cash Flows

171 Solvability and Collectability of Receivables

171 Capital Structure and Capital Structure Policy

171 Investment in Capital Goods

171 Material Ties for the Investment in Capital Goods

171 Material Information and Facts Subsequent to the Date of Accountant’s Report

171 Business Prospect, Condition of Industry and Economy

172 Comparison of Target 2016 and Realization 2016

172 Target/Projection to Reach in 2017

172 Marketing Strategy and Market Share

173 Dividend Policy and Dividend Payment

174-177

Realization of Use of Proceeds from Public Offerings

176 Material Increase/Decrease in Net Profit Related to Sales Volume or New Services

176 Information on Material Transaction Containing Conflicts of Interest and/or Affiliate Transaction

176 Changes in Rules and Regulations Significantly Affecting the Company

176 Changes in Accounting Policies Affecting the Company

176-177

Information on Business Sustainability

178-201


202-229

Development of Human Capital

204 Changes in Organizational Structure

206 Organization Effectiveness

212 Employees Performance and Competency Development

218 Rewards on Innovations

DirectorsReport


94 102

TABlE OF CONTENTS

Consolidated Financial Report

AppendinxStatement Of Members Of Directors And Members Of Board Of Commissioners On The Responsibility For Annual Report 2016Pt Jasa Marga (Persero) Tbk.





219 Employees Competency and Performance Management System

221 Employees Welfare

225 Industrial Relations

226 Post-Employment Benefits

228 Management of Outsourced Workforce

228 Human Capital Communication Process

229 Cost of Human Capital

230-397


232-235

Legal Basis of Jasa Marga GCG Implementation

235 GCG Principles

235 Objectives of Jasa Marga GCG Implementation

237-239

Jasa Marga GCG Internal Policies

237 Jasa Marga Code of Conduct

238 GCG Socialization and Internalization

238-239 Main Points of Jasa Marga Culture

239 Corporate Governance Guidelines

239 Conflict of Interest Guideline

239 Board Manual

239 Whistleblowing System

240-241

Jasa Marga Commitment in GCG Implementation

241-244 Implementation of Corporate Governance Guidelines for Public Companies

245-249

Assessment Result on Commitment and Consistency of Jasa Marga GCG Implementation

250-252

Structure, Policy and Mechanism of Corporate Governance Implementation

253-271

General Meeting of Shareholders

255-264 Annual GMS 30 March 2016

265-269 Extraordinary GMS 29 August 2016

270-271 Follow up on GMS Resolutions Implemented in 2015

272-298

Board of Commissioners

272-273 Composition of the Board of Commissioners

273 Board of Commissioners Board Manual

273-275 Requirements and Diversity of the Composition of the Board of Commissioners

275-288 Duties, Responsibilities, and Authorities of the Board of Commissioners

288-289 Independence of the Board of Commissioners and Independent Commissioners

289 Affiliation and Position in Other Companies

289-290 Dual Position and Conflicts of Interest

291 Competency Development/Training Program for Board of Commissioners

291-296 Board of Commissioners Meetings

296 Achievement of Board of Commissioners Key Performance Indicator (KPI) 2016

297-298 Procedures, Basis of Determination and Amount of Remuneration for Members of the Board of Commissioners

298 Committees under the Board of Commissioners

299-321

Directors

299-301 Composition of the Directors

301 Directors Board Manual

301-304 Requirements and Diversity of the Composition of the Directors

304-310 Duties, Responsibilities, and Authorities of the Directors

310-311 Independence of the Directors and Independent Director

311 Affiliate Relations and Management in Other Companies

312 Dual Employment and Conflict of Interest

313 Training and Competency Development Program for the Directors

313-319 Directors Meetings

319 Achievement of Key Performance Indicators (KPI) of the Directors 2016

319-321 Procedures, Basis of Determination and Amount of Remuneration for Members of the Directors

321 Committee under the Directors

322-328

Relationship between the Directors and Board of Commissioners

329-330

Assessment of Directors and Board of Commissioners

331-345

Committees

331-336

Audit Committee

331 Legal Basis of Forming of Audit Committee

331-332 Qualification of Education and Work Experience

332 Tasks and Responsibilities of Audit Committee

332-338 Independence of Audit Committee

334 Audit Committee Meetings

335 Remuneration of Audit Committee

335 Achievement of Audit Committee Key Performance Indicators (KPI)

335-336 Report on Implementation of Audit Committee Activities

46, 336 Profile of Audit Committee

336-344

Nomination, Remuneration and Risk Committee

337 Legal Basis of Forming of Nomination, Remuneration and Risk Committee

337-338 Tasks and Responsibilities of Nomination, Remuneration and Risk Committee

339 Independence of Nomination, Remuneration and Risk Committee

340 Policy on Directors Succession

340-341 Nomination, Remuneration and Risk Committee Meetings

341 Remuneration of Nomination, Remuneration and Risk Committee

341 Achievement of Nomination, Remuneration and Risk Committee Key Performance Indicators

341-344 Report on Implementation of Duties of Nomination, Remuneration and Risk Committee

47, 344 Profile of Nomination, Remuneration and Risk Committee

344-345

Secretary of Board of Commissioners

345-347

Corporate Secretary

346-347 Implementation of Duties of Corporate Secretary

347 Work Experience and Competency Development

48, 347 Profile of Corporate Secretary

346-347

Internal Audit Unit

348 Appointment and Dismissal of Head of Internal Audit

348-349 Structure and Position of Internal Audit Unit

349 Internal Audit Work Guidelines

349-350 Internal Auditor Code of Ethics

350 Duties and Responsibilities of Internal Audit

350-351 Competency Development of Internal Audit Human Capital and Audit Profession Certification

351-352 Report on Implementation of Internal Audit Unit Activities in 216

352 Other Supporting Audit Activities

352 Performance Evaluation on Internal Audit Unit

48, 352 Profile of Head of Internal Audit

Corporate Internal Control System353 Socialization of SPIP Framework

353 Review on Effectiveness of Corporate Internal Control System

Risk Management Report354-355 Jasa Marga Risk Management Roadmap

355-356 Risk Management Policy

357-359 Risk Management Governance Structure

359-360 The Company’s Risks and Managing Them

360-364 Top Risk RKAP 2016 by Fields

364-368 Implementation of Risk Management Work Program in 2016

48, 368 Profile of VP Risk and Quality Management

369-377

Material Litigation

378 Information on Administrative Sanctions379-382

Code of Ethics

383 Employees and/or Management Stock Ownership Program

384-387

Whistleblowing System

388-394

Consistency in GCG Implementation

388 Management of State Official Property Report (LHKPN)

388 Equal Treatment to All Shareholders

389-390 Procurement of Products and Services

390-394 Information Technology Governance

395-396

External Auditor

397 Access to the Company’s Information and Data

398-401

Corporate Social and Environmental Responsibilities

400-401 Executive Summary

402-403

Responsibility of Members of Directors and Members of Board of Commissioners of Annual Report 2016

404-414

Appendix

404 Glossary405-414

Cross Reference to OJK Regulation No. 29/POJK.04/2016 and Circular of OJK No. 30/SEOJK.04/2016

Consolidated Financial Statements



230 398

4 PT Jasa Marga (Persero) Tbk.

Jasa Marga Profile

2016 Annual Report



Directors Report

Overview2016



The legal basis for establishment Government Regulation No. 04 in 1978

Initial capitalRp 9.52 trillion

Authorized and Fully Paid Rp 3.6 trillion

Shareholding informationIndonesian government 70% Public 30%

Name of stock exchange Indonesia stock exchange IDX / BEI (The Indonesia Stock Exchange / IDX) IPO Date 12 November Code 2007

Exchange CodeBEI / IDX: JSMR BLOOMBERG: JSMR IJ REUTERS: JSMR.JK

Name and Location Company Name:PT Jasa Marga (Persero) Tbk.Location: Domiciled in Jakarta

Head OfficeAddressPlaza Tol Taman Mini Indonesia Indah Jakarta 13550 Indonesia Phone 62-21 841 3526, 841 3630 Fax. 62-21 841 3540 Email: [email protected], [email protected] Website: www.jasamarga.com

Traffic Information Centers and Other ServiceJMTIC (Jasa Marga Traffic Information Center) 14080 twitter @ptjasamargaApps: JMCARe Mobile Apps

Establishment Date of Establishment March 1 1978

JASA MARGA PROFILE

JASA MARGA IDENTITY





Statement Of Members Of Directors And Members Of Board Of Commissioners On The Responsibility For Annual Report 2016Pt Jasa Marga (Persero) Tbk.

Appendinx Consolidated Financial Report

Gedung Baru Kantor Pusat PT Jasa Marga (Persero) Tbk.

Business Activities

Business activities in keeping within the Statute Based on the statute that has been published in Supplement No. 61 tanggal 26 Maret 2015 that were made before Ir. Nanette Cahyanie Handari Adi Warsito, SH., Notary in Jakarta following the Letter of Acceptance Notice of Amendment from the acting Director General Law Administration of the Ministry of Human Rights No. AHU AH.01,03-0019825 dated March 27, 2015 and registered in the Company Register No. AHU-0036530,AH.01, 11, year 2015 dated March 27, 2015, as announced No. 1160/L from BNRI date November 27, 2015 No. 95 and has been published in Supplement No. 39 date December 20, 2016 Notary in Jakarta following the Letter of Acceptance Notice of Amendment from the acting Director General Law Administration of the Ministry of Human Rights No.AHU-AH.01.03-0110503 date December 21, 2016 and registered in the Company Register No.: AHU-0153029.AH.01.11. year 2016 tanggal 21 Desember 2016, the aims and objectives of the Company are participating in implementing and supporting policies and programs of the Government in the economic and national development in general, especially in the sector of toll road concession with its supporting facilities by applying the principles of limited company.

Business OperationsTo achieve the purposes and objectives of the Company implementing and supporting business activities as follows:

Main Business Activity 1. Conduct technical planning, construction, operation

and / or maintenance of toll roads. 2. Efforts to acquire to land in toll road area (Rumijatol)

and Rumijatol border area for rest area and service, along with facilities and other businesses.

Supporting Business Operations 1. Property development in the area adjacent to the toll

road corridors.2. Field development services to businesses related

to modes / means of transportation, distribution of liquid material / solid / gas, networking means of information, technology and communication, related to toll road corridors.

3. Service and trading for service on construction, maintenance and toll road operation.


Jasa Marga Profile

2016 Annual Report



Directors Report

Overview2016



PERUBAhAN lOgO JASA MARgA DARI MASA kE MASA

JASA MARgA lOgO

Road configuration forms the letter “J” (the first letter of the name of the Company) which is a reflection of the historical journey of the Company, reflecting an increasingly dynamic company

Since 1978, the Company changed its logo twice, namely in 1993 and 2007.

The company logo used since 2007 shows the change as a reflection on a strong commitment to become a leading, modern, and professional company.

Blue and yellow in the logo reflect the hope and future, as well as the passion and commitment.

Blue ball indicates that Jasa Marga as a company with global standard. Toll road services continue to be developed to meet these standards.

1978 - 1993 1993-2007

2007-sekarang







Vision And Mission and Strategy of Jasa MargaThe Company formulates its Vision, Mission, and Values ? with the involvement of all parties, among other things: the Board of Commissioners, Directors and employees, and considering the interest of the stakeholders.

Vision and Mission of the Company has been approved by the Board of Commissioners and Board of Directors through Decree No. 50 / KPTS / 2013 dated March 1, 2013 on the Vision, Mission and Values of the Company.

Stages of Preparing Jasa Marga Vision, Mission and Values: 1. The Board of Directors evaluated company’s strengths and performances.2. The Board of Directors evaluated the Company’s strategic change of the external

environment and consider business opportunities in the future.

JASA MARGA VISIONVision for the year 2017

To Become Indonesia’s Top Leading Company in Toll Road Development and Operations

Vision for the year 2022

To become one of the Leading Companies in Indonesia

To provide clarity of direction and unifying focal point, the vision of the Company is being reviewed by evaluating the strength of the Company and the business opportunities in the long run either on the toll road business or other business.

The definitions of Leading Company are as follows: • FinancialsoundnessarerelativelyhighonIndustryandprovideslong-terminvestmentvalue.• Beingamarketleaderinitsindustry.• Alwaysmakesinnovationssoastohavetheexcellentqualityofproductandservice,throughcontinuous

innovation. • Havingasocialresponsibilitytothecommunityandtheenvironment.• HavinganexcellentmanagementoftheCompany.• BeingarolemodelintheHumanCapitalmanagementforanothercompanyandcareerchoicefortalented

people. In the formulation of the Company’s mission, re-evaluated the Company’s reason for being, the Company’s

fundamental purpose and communicate the value of the Company.

In the formulation of the Company’s mission, re-evaluated the Company’s reason for being, the Company’s fundamental purpose and communicate the value of the Company.

JASA MARGA MISSION 1. To achieve accelerated development of the toll road. 2. To provide efficiently and reliably toll road. 3. Improve the smoothness of goods and services distribution

The company’s mission shows that the Company consciously understands its presence in the course of business development and operation of toll roads, with the tasks to realize the acceleration of the construction of the toll roads to support the economic growth program launched by the Government. In addition, the Company also understands that the existence of toll roads managed by the Company should provide benefits for road users who require an efficient and reliable toll roads for the smoothness of goods and services distribution.

Jasa Marga Vision and Mision

Jasa Marga Strategy

KEY STRATEGIES To achieve its vision and mission, the Company establishes three main strategies as follows: a. Toll Road Business Development

• AddingtollroadstoincreasethevalueoftheCompany and to maintain a market share of at least 50% toll roads.

b. Toll Road Operation • Operatingefficient,safe,andhighqualitytoll

road to improve operational performance. • Providingexcellentservicetoroadusers,

community, and government. c. Other Business Development

• Developotherbusinessesthatarestrategicallystrengthening development strategies and operation of toll roads.

• Increaserevenuebyleveragingtheresourcesofthe Company.

SUPPORT STRATEGY a. Financial control Financial control to increase the value of the

Company, supporting the Company’s growth and maintain financial sustainability.

b. Organization and Human Capital Increased competence and preparation of

leadership cadres as well as the talented employees that support the transformation of the organization to improve the productivity and growth of the Company

c. Information Technology and Engineering Engineering and implementation of information technology to improve efficiency, productivity and performance of the Company.

d. Compliance and Risk Management Risk Management and the implementation of

good corporate governance to enhance the Company’s beliefs and values.

3. The Board of Directors evaluated and identified the expectations and needs of stakeholders.

4. The Board of Directors considered the Strength of Internal and External Opportunities and expectations of stakeholders, the Board of Directors formulated the vision and mission of the Company.

5. Vision and Mission is subsequently delivered and evaluated by the Board of Commissioners which then determined and agreed by the Board of Commissioners and Board of Directors.

6. The Board of Directors set the vision and mission through the Company Directors’ Decree.

Board of Commissioners and Board of Directors have annual regular meeting to evaluate the achievement of the Vision and Mission of the Company.

DIRECTORS AND BOARD OF

COMMISSIONERS

VISION AND

MISSION

THE ACCOMPLISHMENT

AND COMPANY’S INTERNAL STRENGTH

STRATEGIC CHANGE ON EXTERNAL

ENVIRONMENT AND BUSINESS OPPORTUNITY

Chart on Jasa Marga Vision & Mission Process

THE NEEDS AND EXPECTATIONS OF STAKEHOLDERS

Since the formulation of the Vision and Mission of the Company in 2013, the Company made strategic moves in order to achieve Vision 2017 "Becoming a Leader and Developer of Operator Toll Road in Indonesia".

To support the Vision and Mission of the Company continues to develop in various aspects:

Business development• TollRoadBusinessDevelopment In 2016, the Company managed to

increase 5 toll road concession rights with the acquisition of Batang-Semarang, Balikpapan-Samarinda, Manado-Bitung, Pandaan-Malang and Jakarta-Cikampek Elevated II Toll Roads. With the addition of five toll roads , then the Company has the right road concession 1,260 km expressway along the length of the operated toll road along the 593 km. It makes The Company remains as a leader in the road industry toll Indonesia with a market share of road operates toll amounted to 61% of the total length operates toll roads in Indonesia.

• OtherBusinessDevelopment To support the continued non-toll road

business in the future, in 2013 the Company formed PT Jasamarga properti majoring at property development in toll road area. In 2015, the Company established PT Jasa Layanan Operasi as toll road operator services.

OperationThe Company is committed to continue to provide the best service for toll road users by operating efficient, safe toll road toward toll road users, and continue to add quality to by adding more Automatic Toll Gate (GTO), Traffic Information Board (VMS), CCTV and fulfillment of Minimum Service Standards Minimal (SPM). In addition, the Company also did the integration Jakarta-Brebes Toll Road and implement the new joint electronic payment which consists of Bank Mandiri, BRI, BNI, and BTN (Himbara) and BCA.

FinanceTo support the financing, the Company Rights Issue amounting to Rp 1.78 trillion.

Human ResourcesTo support business growth of the company, the Company is committed to prepare Its Human Capital by recruit new employees as well as conduct education and training to provide scholarships to high performing employees. In the year of 2016, the Company recruited 140 new graduates toto prepare a cadre of the Company.

By these, the Company is optimistic to be able to achieve the vision "Becoming a Leader and Developer of Operator Toll Road in Indonesia".


Jasa Marga Profile

2016 Annual Report



Directors Report

Overview2016



JASA MARgA VAlUE AND CUlTURE

To achieve the vision and mission, Jasa Marga compiled

Values guiding principles for behavior and decision making.

To that end, Jasa Marga to develop values based on

four fundamental values that are recognized and jointly

developed: JSMR (Honest -Spry- Capable - Respect).

The values have been approved by the Board of

Commissioners and Board of Directors with Decree No.

50 / KPTS / 2013 dated March 1, 2013 on the Vision,

Mission and Values of the Company. To show seriousness

and to monitor the effectiveness of the company’s values,

the company established a guideline to socialize and to

evaluate the Vision, Mission and Values of companies

contained in Decree No. 173 / KPTS / 2014 dated October

15, 2014.

Statement Regarding the Company’s Corporate Culture The implementation of good corporate governance will

be successful if it is supported by a strong corporate

culture. Cultural internalization approach is done through

intervention at all three aspects, namely leadership,

systems and employees. With this approach, Jasa Marga

culture in addition to written policies and procedures,

has also become soft skills practiced by the Board of

Commissioners, Directors and employees in the execution

of their daily work.

FOUR JASA MARGA PRINCIPAL VALUES THAT ARE RECOGNIzED AND JOINTLY DEVELOPED, AND USED AS A BASIS JASA MARGA EMPLOYEES IN INTERACTING wITH THE STAKEHOLDERS

Jasa Marga in operation always HONEST, fair, transparent and free from conflicts of interest.

J JUJURJasa Marga is spry to serve customers and other stakeholders by caring and proactive and still emphasizes prudence.

S SIGAPJasa Marga is capable in working on the basis of competence, consistency and innovation.

M MUMPUNIJasa Marga always shows a respect to stakeholders in synergizing for achievements

R RESPEK







The Main Points of Jasa Marga Culture The company has established a set of Jasa Marga values as a corporate culture that forms the basis for Jasa Marga

individuals in interaction with stakeholders. The description of Jasa Marga values based on the Decision of the Jasa Marga

Board of Directors No. 08 / KPTS / 2016 on the description of PT Jasa Marga (Persero) Tbk. values as follows:

THE DESCRIPTION OF JSMR SET OF VALUES AS CORPORATE CULTURE

Tata Nilai Definisi Penjabaran

J JUJURJasa Marga in operation always HONEST, fair, transparent and free from conflicts of interest.

Honest: The spirit of the integrity of conscience, not just complying with regulations.

Fair: Upholding the equality and fairnessTransparent and free from conflicts of

interest: Independent and objective.

S SIGAPJasa Marga is spry to serve customers and other stakeholders by caring and proactive and still emphasizes prudence.

Capable: Having the ability and willingness to carry out the work.

Consistent: Dare to behave and be a role model (role model).

Innovative:Developing ideas for continuous improvement

M MUMPUNIJasa Marga is capable in working on the basis of competence, consistency and innovation.

Capable: Having the ability and willingness to carry out the work.

Consistent: Dare to behave and be a role model (role model).

Innovative:Developing ideas for continuous improvement

R RESPEKJasa Marga always shows a respect to stakeholders in synergizing for achievements

Respect: Respect for other parties proportionally.

Synergizing for achievements: Upholding the teamwork and managing diversity can add value.


Jasa Marga Profile

2016 Annual Report



Directors Report

Overview2016



The Socialization On The Value of The Company To ensure the implementation of JSMR Values into the daily activities of the Company, the Company should

continuously disseminate the values to all Jasa Marga Individuals. Deployment and dissemination of values

is done via the Company’s internal and external sites, slide presentation in training activities or meetings,

installation of banners in strategic places in the office

Programs conducted in 2016 were:

1. The mandate to include Company Values in the document of procurement / services within the Company

and at the time of meeting explanation.

2. The online surveys regarding Vision, Mission and Values of the Company in all units and branches. The

evaluation includes evaluation of the understanding of the Vision, Mission and Values as well as an

evaluation of the effectiveness level of socializing Vision, Mission and values.

3. The elaboration of the Vision, Mission and Values of down to operational level by the consultants. As

stipulated in the decision of the Board of Directors 08 / KPTS / 2016 on the description of PT Jasa Marga

(Persero) Tbk Values.

4. Socialization and survey on the understanding and effectiveness of Decree No. 173 / KPTS / 2014 dated

October 15, 2014.

Increase the commitment and the performance

of members of the organization

to support the achievement

of Jasa Marga performance

Foster attitudes and behavior that could play a role to contribute optimally to the achievement of Jasa Marga vision and mission

Introduce and give an exact overview on JSMR formally to all Jasa Marga

individuals

Instilling values JSMR to be reflected and in line with the behavior of Jasa Marga individuals every day

Instilling values JSMR to be reflected and in line with the behavior of Jasa Marga individuals every day







The launching program of JSMR set of values was initiated

on October 15, 2014 in accordance with the Decree of

Directors No. 173 / KPTS / 2014, either directly or cascading,

but its effectiveness has not been measured. With the help

of Management Consultants, on 6 to 22 March 2015 Culture

Assessment (Measurement Culture) online was conducted

and addressed to all Jasa Marga respondents, taking into

account the socialization and internalization efforts that have

been made by Jasa Marga some time ago.

JSMR Culture Assessment focused on:

1. Awareness.

2. Understanding.

3. Culture Index.

Furthermore, JSMR Measurement Culture will be conducted

once a year to evaluate and monitor the progress of JSMR

Values implementation. Thus all the activities related to

the effectiveness of implementation of JSMR Values can

be measured and the advantages and disadvantages can

identified to be managed.

By taking the results of JSMR Measurement culture into account, the company designed a program of re-launching the

JSMR elaboration which aims to revive the spirit in applying JSMR further by taking the successful socialization and

internalization into account with the following results:

The results of measurement in the comprehension level on the company’s vision, mission and values in the Year 2016.

Level Hasil (%)

Comprehension level the company’s Vision, Mission and Values Internally 89.25

Comprehension level the company’s Vision, Mission and Values Externally 76.00

Culture Implementation Phase

Mulai

Selesai

Current Conditions

1 Operational Organization

Culture Assessment

Index

Organization Culture

Implementation

Roll-out program of

socialization and

internalization of

organizational culture

Evaluation and Monitoring System as

feedback for improvement

Implementation r

roll out, socialization and

internalization corporate culture

Kick-off meeting & Strategy

Exploratory Meeting

Mengkaji kondisi

organisasi

1. Melakukan culture

assessment2. Melakukan

analisis kesenjangan

Menyusun sasaran, strategi

dan program implementasi

budaya organisasi

Prepare roll-out program of

socialization and internalization of

organizational cultur

Menyusun Sistem

Evaluasi dan Monitoring

sebagai umpan

balik untuk perbaikan

Roll out, socialization and

internalization of the corporate

culture Describing

organization values to become

more operational

3

4

56

7

2


Jasa Marga Profile

2016 Annual Report



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Overview2016



JASA MARgA IN BRIEF

Jasa Marga Milestones

1978 1983

2009

2011

2008

2012

2007

2013

o Jasa Marga was established with focus on business management, maintenance and procurement of the tollroad network.

o Jagorawi as the first tollroad in Indonesia began operations.

Semarang Toll Road operations.

· The initiation of Jakarta-Tangerang Toll Road.

· The initiation of Prof. Dr. Ir. Sedyatmo Toll Road. (airport tollroad)

· The initiation of Surabaya-Gempol Toll Road. The initiation of Belmera (Belawan- Medan-Tanjung Morawa) Toll Road.

· The Change on Jasa Marga Logo Reflecting Modernization and Transformation.

· Jasa Marga became a public company through an Initial Public Offering (IPO) and listed its shares on the Indonesia Stock Exchange.

· integrated JORR from Ulujami-Cilincing.

The Signing of Kunciran-Serpong Toll Road concession agreement

· The initiation of Bogor Outer Ring Road (Section 1 Segment South Sentul-Kedung Halang).

· Implementation of e-Toll Card.

· The Signing of Cengkareng-Kunciran Toll Road concession agreement.

· Acquisition of Toll Road Surabaya - Mojokerto.

· The initiation of Surabaya-Mojokerto Toll Road (Section 1A Waru-Along Segment) and Semarang-Solo Toll Road (Section 1 Segment Semarang-Ungaran).

Implementasi e-Toll Pass.

The initiation of Nusa Dua-Ngurah Rai-Benoa Toll Road (Bali Mandara Toll Road) and W2 North JORR (Kebon Jeruk Toll-Ciledug).

Forming of PT Jasamarga Property

· The signing of the Nusa Dua-Ngurah Rai- Benoa Toll Road Concession Agreement.

Akuisisi PT Jasa Layanan Pemeliharaan (JLP)

2010

19861984







Pengoperasian Jalan Tol Jakarta-Cikampek.

The initiation of Padaleunyi Toll Road (Padalarang- Cileunyi)

The initiation of Jakarta Out-er Ring Road (Section S Segment Pondok Pinang-Lenteng Agung).

• Governmentofferedthe opportunities for the private sector to participate in tollroad business through Build, Operate and Transfer (BOT) system with Jasa Marga.

• JakartaTollroadsoperated by Jasa Marga initiated its operations gradually

The initiation of Palikanci Toll Road (Palimanan- Kanci).

Forming of PT Jalantol Lingarluar Jakarta

Cipularang Toll Road (Cikampek Purwakarta- Padalarang) Operations.

The Signing of Toll Road Concession Agreement on Bogor Outer Ring Road, Semarang-Solo Toll Road Concession, Gempol- Pasuruan Toll Road Concession, Gempol- Pandaan Toll Road Concession, JORR W2 North Toll Road Concession, Surabaya-Mojokerto Toll Road Concession and 13 toll roads have been operated by Company.

The authority function was returned to the Government: Toll Road Regulatory Agency (BPJT) under the Ministry of Public Works.

The initiation of Semarang-Solo toll road ( section 2 Ungaran-Bawen segment), Bogor Outer Ring Road (section 2A Kedung Halang-Kedung Rhinos) and JORR W2 North Toll Road (Ciledug-Ulujami segment)

• TheacquisitionsofSolo-Ngawi, Ngawi- Kertosono, and Cinere-Serpong Toll road

• TheoperationofGempol-Pandaan Toll road

• FormingofPTJasaLayanan Operasi

• OperationofSurabaya-Mojokertosection 4: Krian-Mojokerto toll road

•WinningtenderofBatang-Semarang, Balikpapan-Samarinda, Manado-Bitung dan Pandaan-Malang Toll Road

• IntegrationofJakarta-BrebesTollRoad

ª Winning the concession tender on Kualanamu- Medan-Tebing Tinggi Tollroads.

•Signingoftheoperationof Surabaya-Manudra Toll Bridge

2015 20162014

1987 1988 1990 1991

1998

2006 2004 2003 2002


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THE FOUNDATION STONE

To support economic growth, Indonesia needed reliable road

networks. PT Jasa Marga (Persero) Tbk. was formed by the

Indonesian Government based on Indonesian Government

Regulation No. 04 year 1978 on Capital Investment of the

Republic of Indonesia in the Company establishment in

the area of management, maintenance and procurement of

toll road network, as well as the provisions of the business

(State Gazette of the Republic of Indonesia No. 04 in 1978

in conjunction with the Decree of the Minister of Finance of

the Republic of Indonesia No. . 90 / KMK.06 / 1978 on The

Determination of Capital of the Company (Persero) PT Jasa

Marga dated February 27, 1978).

BRIEF hISTORY OF JASA MARgA

The Company was established based on the Deed No. 1

dated March 1, 1978, under the name, “PT Jasa Marga

(Indonesia Highway Corporation)”, as amended by Deed

No. 187 dated May 19, 1981 and the Company’s name was

changed to “PT Jasa Marga (Persero)”, both made before

Kartini Muljadi, SH., in Jakarta.

Based on the decision from General Meeting Extraordinary

Shareholders on September 12, 2007 on changes to the

whole Statutes in relation to Initial Public Offering, including

an increase in the authorized capital, issued and fully paid,

change in par value and class of shares , changes in the

company’s status from private to public company, and the

name change of the company into (Persero) PT Jasa Marga

(Indonesia Highway Corporatama) Tbk. or PT Jasa Marga

(Persero) Tbk. Decisions about changes in the Statutes was

Jalan Tol Dalam Kota

Tempo Dulu, “Panco

ran”







stated in the Deed No. 27 dated 12 September 2007 before

the Notary Ny. Poerbaningsih Adi Warsito, SH. The deed

was approved by the Minister of Law and Human Rights of

the Republic of Indonesia through Decree No. W7-10487

HT.01,04 TH.2007 September 21, 2007.

The statute had been amended several times and the latest

statute was published in Supplement No. 27404 of the

Official Gazette of the Republic of Indonesia on December

12, 2008 No. 100, and the amended deed No. 33 dated April

5, 2011 were made before Mrs. Poerbaningsih Adi Warsito,

SH., Notary in Jakarta following the approval of the Minister

of Law and Human Rights No. AHU-20 288, AH.01,02

Tahun 2011 dated April 21, 2011 and Act No. 95 dated

June 21, 2012 that was made before Mrs. Poerbaningsih

Adi Warsito, SH., Notary in Jakarta following receipt of the

notification letter from the Directorate General of General Law

Administration of the Ministry of Human Rights No. AHU.

AH.01,10-25313 dated July 10, 2012 and the Deed No. 61

dated March 26, 2015 was made before Ir. Nanette Cahyanie

Handari Adi Warsito, SH., Notary in Jakarta following the

Letter of Acceptance Notice of Amendment by the acting

Director General of Law Administration of the Ministry of

Human Rights No. AHU-AH.01,03-0019825 dated March

27, 2015 and had been registered in the Company Register

No. AHU-0036530, AH.01,11, 2015 dated March 27, 2015

as published in Supplement No. 1160/L from BNRI Date

November 27, 2015 No. and the amended deed No. 39

Dated December 20, 2016 made before Ir. Nanette Cahyanie

Handari Adi Warsito, SH, Notary in Jakarta following The

Letter Of Acceptance Notice Of Amandment From The

Director General Law Administration Of The Ministry Of

Human Rights No. AHU-AH.01.03-0110503 dated December

21, 2016 and had been registered in the Company Register

No. AHU-0153029. AH.01.11. dated December 21, 2016.

THE CHANGE OF THE COMPANY’S NAME

In addition to the name change of the company from limited

liability toa public company, the Company never changes its

name.

BUSINESS ACTIVITIES

Under Article 3 of the Statute, the purpose and objectives

of the Company are participating in implementing and

supporting policies and programs of the Government in the

economic and national development in general, especially in

the area of toll road concession with its supporting facilities

by applying the principles of limited company. To achieve the

objectives, the Company is implementing the following main

business activities:

1. Technical planning, construction, operation and / or

maintenance of toll roads.

2. Acquiring the land in toll road area (Rumijatol) and the

Rumijatol border area for rest area and service, along with

The facilities and other businesses.

The business activities conducted by the Company through

the process of planning, building, operating and maintaining

the tollroads as well as a means of apparatus that can serve

as a toll road give higher benefits than non-toll public roads.

Based on the Statute, in addition to the main business

activities, the Company is also supporting business activities,

namely:

1. property development in the area adjacent to the tollroads

corridors.

2. Development services to businesses related to modes

/ means of transportation, distribution of liquid / solid /

gas material, information networking, technology and

communication, related to highway corridors.

3. Trading and services for service construction,

maintenance and operation of toll roads.


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2016 Annual Report



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Overview2016



JASA MARgA BUSINESS PROCESSES

PT Jasa Marga (Persero) Tbk has had business processes integrated with each other in the operating and constructing toll

roads in Indonesia in order to give value added for stakeholders including customers. The main work system consists of three

(3) systems: Toll Road Work Development System, Toll Road Operation Work System and Non Tol Development Work System.

The main system pays attention to three (3) input elements namely Customer Expectations, Capabilities and Capacity Supplier

Partners and Stakeholders Expectations. The main system is supported by a support system as described in the figure below:

Regulation, Management Information Systems, Audit Management, Procurement Management, Financial Management, Human

Resources Management, Management excellence, Quality Management and Risk Management.

PEMEGANG SAHAM

MITRA

KOMUNITAS

PEMERINTAH

SERIKATPEKERJA

PELANGGAN

APengelolaan

LayananTransaksi

VP OM

FPengelolaan

SDM

VP HCSP

IPengelolaan

SDM

Administrasi Perusahaan

VP GA

FManajemenKorporasi

CorporateSecretary

GPengelolaanKeuangan

VP F & A

GPengelolaan

Logistik

GM GA

GPengelolaan

K 3 L

VP RQM

HPengelolaan

Teknologi Informasi

VP IT

HManajemen

Bisnis

VP BusinessManagement

HPengelolaanHukum danKepatuhan

VP Legal

OPerencanaanPerusahaan

VP CP

P

QManajemen

Risiko

VP RQM

RPengelolaan

Audit

Head of IA

SPengukuran

KinerjaManajemen

VP CP

TPengelolaan

IMS

VP RQM

FPengelolaan

Inovasi

VP RQM

BPengelolaan

LayananLalu Lintas

VP OM

CPengelolaan

LayananKonstruksi

VPMaintenance

D

E

INTIPENDUKUNG PERENCANAAN

TINJAUAN DAN PERBAIKAN

PengembanganUsaha Jalan

Tol

VP TRBD

PengembanganUsaha Lain

VP RBD

Perencanaan dan Pengembangan Teknik Jalan tol

VP HEPD







TOll ROAD INDUSTRY DEVElOPMENTS IN INDONESIA

1978

Historical development of toll road industry in Indonesia

began in 1978, when the Jagorawi Toll Road officially began

its operation for the first time. The development of Jagorawi

toll road, which connecting Jakarta-Bogor-Ciawi, was carried

out by the government by using state budget and foreign

loans, which

was handed over to PT Jasa Marga (Persero) Tbk. as equity.

1980

At the end of the decade of the 1980s, the Indonesian

government began to include private investors to participate

in the construction of toll roads through the mechanism of

Build, Operate and Transfer (BOT).

2004

The enactment of Law No. 38 of 2004 on Road replaced

Law No. 13 in 1980 as well a the issuance of Government

Regulation No. 15 of 2005 which regulates more specific

about toll road, a change in the mechanism of the toll road

business of which is the establishment of the Toll Road

Regulatory Agency (BPJT) as a regulator of the toll road

industry in Indonesia, and the setting up of toll rates by the

Minister of Public Works with tariff adjustments made every

two years, takin into account the inflation rate.

BUSINESS DEVElOPMENT OF JASA MARgA

At its inception, the Company played a role not only as an

operator but takes responsibility as a toll road authority in

Indonesia. Until 1987, the Company was the only authorized

provider of toll roads in Indonesia whose development is

Process Core (Core Process)

The core process is a process that is carried out on the basis

boost customer demand and other Stakeholders in the form

of products and services, so that these requirements can be

met in the products offered to create customer satisfaction.

Block Process contained in the core processes include:

A = Management Transaction Services

B = Management Service Traffic

C = Construction Management Services

D = Business Development Toll Road

E = Other Business Development

Process Support (Support Process)

Supporting processes are processes that appear over basic

needs for their core processes or process planning results

are directly or does not directly support the core processes.

Judging from the nature processes, supporting processes

is also an important process PT Jasa Marga (Persero) Tbk,

because without this process

implementation of core processes can not be implemented.

Block Processes contained in the Supporting Process

include:

F = Human Resources Management

G = Financial Management

H = Management of Information Technology

I = Management Company Administration

J = Logistics Management

K = Business Management

Process Planning (Planning Process)

Planning processes are processes implemented on the basis

of a business plan and objectives PT Jasa Marga (Persero)

Tbk. This process is intended to anticipating changes in

the business environment, both internally and externally,

so that consistency of quality product and organizational

performance can still be maintained. Block Processes

contained in the planning process include:

O = Planning Company

P = Planning and Development Engineering Toll Road

Q = Risk Management

Review and Improvement Process (Review & Improvement

Process)

Process review and improvement are processes carried out

by looking at the results of various Work System elements

are in need of repair / improvement. In connection with

efforts to increase the efficiency and effectiveness of PT

Jasa Marga (Persero) Tbk is sustainable. Specifically activity

contained

in this process are matters relating to compliance and

consistency in the implementation of the JM WAY. Process

block contained in the Review Process and Improvements

include:

R = Audit Management

S = Management Performance Measurement

T = Manage IMS

U = Management


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funded by the Government with funds coming from foreign

loans and bond issuance by Jasa Marga. As the first toll road

in Indonesia operated by by the Company, Jagorawi Toll

Road (Jakarta-Bogor-Ciawi) represents a milestone for the

development of toll road industry in the country that started

operation since 1978.

In the decade of the 1990s, the Company is acting as the

authority institution that facilitates private investors which

largely had failed to realize the projects. Some toll roads were

then taken over by the Company including JORR (Jakarta

Outer Ring Road) and Cipularang.

With the issuance of Government Regulation No. 15 of

2005 regulating the toll road business, the role of the

Company’s authority was handed back to the Government.

As a consequence, the Company exercises its functions as

a developer and operator of toll roads that will get the toll

operating license from the Government.

The construction and operation of the toll road since then

was based on the concept of investment in which the

Company as an investor will invest in toll roads that have

adequate level of financial return in accordance with the

concession period. The process to get a new toll road

concessions should also be done through the establishment

of separated business entities. The acquisition of toll

road concession can be obtained in three ways, namely

by participating in tender of toll roads organized by the

government, the acquisitionby increasing share ownership

on toll roads that are potential and through unsolicited way in

which the Company submitted to the government to build a

toll road sections that are not in the government’s plan.

To support the expansion and development of the Company,

the Company became a public company and listed listed

on the Indonesia Stock Exchange (formerly Jakarta Stock

Exchange) since the Government sold 30% of its shares to

the public on November 12, 2007.

Jembatan Susukan, Jalan

Tol Semarang-Solo







TOLL ROAD BUSINESS DEVELOPMENTThrough the Toll road Business Agreement or Perjanjian

Pengusahaan Jalan Tol (PPJT) signed on 7th of July 2006, 13

(thirteen) Corporate toll roads that has already operating at

that time had concession time for 40 years started effectively

since 1st January 2005, with exception PPJT JORR Section

S that in 2013, Jasa Marga has been appointed as temporary

operator based on the Decision Letter of Minister of Public

Works No. 80.1/KPTS/M/2013

on Temporary Operation of Jakarta Outer Ring Road Pondok

Pinang – Jagorawi Section or Jalan Tol Lingkar Luar Jakarta

Seksi Pondok Pinang-Jagorawi (JORR S). In its development,

the Corporate continuously put the effort to add the

ownership of new toll road concession. Since 2006, the

Corporate has signed 6 (six) Toll road Business Agreement

of perjanjian pengusahaan jalan tol (PPJT) which are Bogor

Outer Ring Road Toll road which concession is being held

by PT Marga Sarana Jabar, Semarang-Solo Toll road by

PT Trans Marga Jateng, Gempol-Pasuruan Toll road by PT

Transmarga Jatim Pasuruan, PPJT Gempol-Pandaan by PT

Jasamarga Pandaan Tol, JORR W2 North Toll road by PT

Marga Lingkar Jakarta, and Surabaya-Mojokerto Toll road by

PT Marga Nujyasumo Agung.

In addition to continuously try to add the total of new toll

road concession, the Corporate also adds the portion of

ownership in the Subsidiaries of toll road concession holders.

In 2009, the Corporate improved the share ownership

inclusion and becomes the majority share holders to PT

Marga Kunciran Cengkareng, the concession holder of

Cengkareng-Kunciran Toll road; PT Marga Trans Nusantara,

concession holder of Kunciran-Serpong Toll road; and PT

Marga Nujyasumo Agung, concession holder of Surabaya-

Mojokerto Toll road that has concession time of 35 years.

In 2011, the Corporate improved the inclusion of share

ownership to be the majority share holder by purchasing

share of the existing share holders in PT Marga Bumi

Adhikaraya as Gempol-Pandaan Toll road concession

holder with concession time of 35 years. In addition to that,

together with 4 (four) consortiums of SOE, ROE, and Local

Governemnt, the Corporate is appointed as the initiator of

Nusa Dua-Ngurah Rai-Benoa Toll road Project in Bali with

concession time of 45 years.

In 2014, together with 3 (three) SOE consortiums, the

Corporate won the tender of Medan-Kualanamu-Tebing

Tinggi Toll road Business, that until the end of 2014 through

Subsidiaries established by the Corporate with several

business partners in which the Corporate has majority

ownership more than 51%, the Corporate has additional 10

(ten) new toll roads with length of 273 km.

And then in 2015, the Corpoate acquired the Solo-Ngawi

Toll road, Ngawi-Kertosono Toll road, and Cinere-Serpong

Toll road. While in 2016, the Corpoate has won the tender of

Semarang-Batang Toll road (75 km), Balikpapan-Samarinda

Toll road (90,10 km), Manado-Bitung Toll road (39,9 km),

Pandaan-Malang Toll road (37,6 km) and Jakarta-Cikampek II

Elevated Toll road (36,4 km) which is the Corporate’s initiation

project. Until 31st of December 2016, through 9 (nine)

Branches and 18 (eighteen) Subsidiaries in toll road business,

the Corpoate is the concession holder for 31 toll roads which

19 of them are with length of 593 km have been gradually

operated, which are Bogor Outer Ring Road Toll road Sentul

Selatan-Kedung Badak Road (5,9 km); Semarang-Solo Toll

road Semarang-Bawen Road (23,1 km); Surabaya-Mojokerto

Toll road Waru-Sepanjang Road (2,3 km) and fully operates

Nusa Dua-Ngurah Rai-Benoa Toll road (10 km); JORR W2

North Toll road (7,7 km); and Gempol-Pandaan Toll road

(13,61 km). Therefore, the Corporate has concession right

of 1261 km in which the Corporate still as the market leader

with ownership of 61% concession right of Toll road in

Indonesia.

OTHER BUSINESS DEVELOPMENTIn addition to working in toll road business, the Corporate

also conducts several other businesses to synergize

and maximize the development of assets owned by the

Corporate. The business activity is being strengthen with the

establishment of three subsidiary entities, which are PT Jasa

Layanan Pemeliharaan (JLP) – previously PT Sarana Marga

Utama, which was established in 1988 and acquired since

2010 works in construction services, trading, and vehicle

rental; PT Jasamarga Properti thata was established in 2013

and works in development, trading, and property-related

services; and PT Jasa Layanan Operasi that was established

in 2015 and works in Toll road Operation services.

Based on the operated type of business, the Corporate’s

operating revenue is generated from the transaction of

vehicle that passes the toll road (toll revenue) and other

operating revenue that consists od land lease, advertising

revenue, rest area, and other party toll road operating service

as well as maintenance services.


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In order to achieve the Vision and Mission as well as the Corporate’s business strategic plan and according to strategic policy in competency-based human capital, the Corporate required organization that is function grouping with hard and soft competencies approach to support the effectiveness and performance of the organization.

JASA MARgA STRUCTURE OF ORgANIzATION Based on Board of Directors Decision Letter No. 156KPTS/2016 dated on 29th September 2016

STRUCTURE OF ORgANIzATION

CORPORATEPLANNING DIVISION

TOLLROAD BUSINESSDEVELOPMENT

DIVISION

INFORMATIONTECHNOLOGY

DIVISION

CORPORATE SECRETARY

FINANCE ANDACCOUNTING

DIVISION

BUSINESSDEVELOPMENT related DIVISION

BUSINESSMANAGEMENT

DIVISION

INTERNAL AUDIT

LEGAL ANDCOMPLIANCE

DIVISION

RISKAND QUALITYMANAGEMENT

DIVISION

HIGHwAYENGINEERINGPLANNING &

DEVELOPMENTDIVISION

TOLL ROAD SUBSIDIARIES COMPANIES

NON TOLL ROAD SUBSIDIARIES COMPANIES

FINANCE DIRECTOR

DEVELOPMENTDIRECTOR

PRESIDENT DIRECTOR

OPERATIONDIRECTOR I







HUMAN CAPITAL STRATEGY &

POLICY DIVISION

OPERATIONMANAGEMENT

DIVISION

HUMAN CAPITAL SERVICES DIVISION

MAINTENANCE DIVISION

JASA MARGA DEVELOPMENT CENTER UNIT

COMMUNITY DEVELOPMENT PROGRAM UNIT

GENERAL AFFAIR

DIVISION

BRANCHOFFICES

OPERATIONDIRECTOR II

HUMAN CAPITAL & GENERAL DIRECTOR


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Perseroan memiliki 5 direktorat yang setiap direktorat memiliki fungsi dan ruang lingkup kerja masing-masing.

In addition to the above work units, the Corporate also has several work units that are directly controlled by

Managing Director that are Internal Audit and Corporate Secretary Units. As for the Toll Road Subsidiaries and

Non Toll Road Subsidiaries, are under the control of Corporate’s Board of Directors.

Directorate of Development Toll Road Business Development Division; Related Business Development Division; and Highway Engineering Planning and Development Division

• Ensurethetollroadbusinessdevelopmentstrategicplanandotherbusinesses and planning and development of toll road techniques

• CoordinatethecontrolofTollroadSubsidiariesandOtherBusiness’Subsidiaries.

Directorate of Operation I Information and Technology Division andBusiness Management Division

• Ensuretheavailabilityofstrategicplanincorporatetechnologyandcommunication and direct, lead, and control the implementation of activity and work program in Subsidiary’s Toll road operation.

• CoordinatethecontrolofTollroad’sSubsidiaryofconstruct-operatestage and operation and other business implementation.

Directorate of Operation II Operation Management Division, Maintenance Division and Branch

• Ensuretheavailabilityofstrategicplanintollroadoperationandmaintenance and direct, lead, control the implementation of activity and work program in toll road operation and maintenance implemented by Branch.

• DirectsthemanagementofTollroadSubsidiaryinOperationandMaintenance.

Directorate of Human Resources and General Affairs

Human Capital Strategy and Policy Division, Human Capital Services Division, Jasa Marga Development Program Unit, Community Development Program Unit and General Affairs Division.

• Ensuretheavailabilityofstrategicplaninhumancapitaldevelopmentand management, general affairs, and partnership program, and environmental development.

• DirectthemanagementofSubsidiaryinhumancapitalmanagementandgeneral affairs.

Directorate of Finance Corporate Planning Division, Finance and Accounting Division,Risk and Quality Management Division and Legal andCompliance Division

• Financemanagementandriskandqualitymanagementinvestmentaswell as legal and compliance.

• ProvidesdirectionontheimplementationandmanagementofSubsidairyin finance, legal, and compliance and risk, quality and excellent performance







kEY STAkEhOlDERS, SUBSIDIARY ENTITY & ASSOCIATION ENTITY

JASA MARgA gROUP STRUCTURE OF COOPERATION

JASA MARgA gROUP STRUCTURE OF COOPERATION(per 31 DeCember 2016)

PT Jasamarga Surabaya Mojokerto

55%

PT JalantolLingkarluar

Jakarta99.9%

PT Marga LingkarJakarta

65%

PT Solo Ngawi Jaya60%

PT Jasamarga Balikpapan Samarinda

55%

PT JasamargaProperti99.8%

PT Jasamarga Manado Bitung

65%

PT Jasa LayananOperasi99.9%

PT Marga Sarana Jabar55%

PT TransMargaJateng73.9%

PT Ngawi Kertosono

Jaya60%

PT Cinere Serpong

Jaya55%

PT Jasamarga Semarang

Batang 60%

PT Jasamarga Jalanlayang

Cikampek80%

PT Jasamarga Pandaan Malang

60%

PT Jasa Layanan

Pemeliharaan99.7%

PT TransmargaJatim

Pasuruan98.8%

PT JasamargaPandaan Tol

92.2%

PT JasamargaBali Tol

55%

PT JasamargaKualanamu

Tol55%

PT JasamargaKunciran

Cengkareng76.2%

PT Marga TransNusantara

60%

PT JASA MARGA (PERSERO) Tbk.

30%

REPUBLIC OF INDONESIA

70%

PUBLIC

ENTITAS ANAK(KEPEMILIKAN >50%)

PT Trans Lingkar Kita

Jaya21.24%

PT Ismawa Trimitra25.00%

ENTITAS ASOSIASI(KEPEMILIKAN 20%-50%)


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SUBSIDIARY ENTITY

asa Marga Subsidiary Table (per 31st December 2016)

No. Name of Entity Share Ownership Business Line Status*

1 PT Jalantol Lingkarluar Jakarta

• Jasa Marga: 99,9%• Inkopkar Jasa Marga: 0,1%

Jakarta Outer Ring Road Toll road Business

Operating

2 PT Marga Sarana Jabar • Jasa Marga: 55%• PT CMNP Tbk: 30,00%• PT Jasa Sarana: 15,00%

Bogor Outer Ring Road Toll road Business

Operating

3 PT Trans Marga Jateng • Jasa Marga: 73,9%• PT Sarana Pembangunan Jawa Tengah:

1,09%• PT Astratel Nusantara: 25,00%

Semarang-Solo Toll road Business

Operating

4 PT Jasamarga Kunciran Cengkareng

• Jasa Marga: 76,2%• CMS WIL: 21,00%• PT Wijaya Karya: 2,10%• PT Nindya Karya: 0,28%• PT Istaka Karya: 0,42%

Cengkareng-Kunciran Toll road Business

Not yet operating

5 PT Marga Trans Nusantara

• Jasa Marga: 60%• PT Astratel Nusantara: 30,00%• PT Transumata Arya Sejahtera: 10,00%

Kunciran- Serpong Toll road Business

Not yet operating

6 PT Marga Lingkar Jakarta

• Jasa Marga: 65%• PT Jakarta Marga Jaya: 35,00%

JORR W2 North Toll road Business

Operating

7 PT Jasamarga Surabaya Mojokerto

• Jasa Marga: 55%• Moeladi Grup: 25,00%• PT Wijaya Karya: 20,00%

Surabaya- Mojokerto Toll road Business

Operating

8 PT Transmarga Jatim Pasuruan

• Jasa Marga: 98,8%• PT Jatim Marga Utama: 1,19%

Gempol- Pasuruan Toll road Business

Not yet operating

9 PT Jasamarga Pandaan Tol

• Jasa Marga: 92,2%• PT Jalan Tol Kab. Pasuruan: 7,80%

Gempol- Pasuruan Toll road Business

Operating

10 PT Jasamarga Bali Tol • Jasa Marga: 55%• PT Angkasa Pura I : 8,00%• PT Pelindo III: 17,58%• PT Pengembangan Pariwisata Bali: 1,00%• PT Adhi Karya: 1,00%• PT Hutama Karya: 1,00%• Pemerintah Provinsi Bali: 8,01%• Pemerintah Kabupaten Badung: 8,01%• PT Wijaya Karya: 0,40%

Nusa Dua-Ngurah Rai-Benoa Toll road Business

Operating

11 PT Jasa Marga Kualanamu Tol

• Jasa Marga: 55%• PT Waskita Karya: 15,00%• PT Pembangunan Perumahan: 15,00%• PT Waskita Toll Road: 15,00%

Medan- Kualanamu-Tebing Tinggi Toll road Business

Belum Beroperasi

12 PT Solo Ngawi Jaya • Jasa Marga: 60%• PT Waskita Toll Road: 40,00%• PT Ferindo Putra: 1 lembar saham

Solo- Ngawi Toll road Business Belum Beroperasi







No. Name of Entity Share Ownership Business Line Status*

13 PT Ngawi Kertosono Jaya

• Jasa Marga: 60%• PT Waskita Toll Road: 40,00%• PT Ferindo Putra: 1 lembar saham

Ngawi- Kertosono Toll road Business

Not yet operating

14 PT Cinere Serpong Jaya • Jasa Marga: 55%• PT Waskita Toll Road: 35,00%• PT Jakarta Propertindo: 10,00%

Cinere- Serpong Toll road Business

Not yet operating

15 PT Jasamarga Semarang Batang

• Jasa Marga: 60%• PT Waskita Toll Road: 40,00%

Batang- Semarang Toll road Business

Not yet operating

16 PT Jasamarga Balikpapan Samarinda

• Jasa Marga: 55%• PT Wijaya Karya: 15,00%• PT Pembangunan Perumahan: 15,00%• PT Bangun Tjipta Sarana: 15,00%

Balikpapan-Samarinda Toll road Business

Not yet operating

17 PT Jasamarga Manado Bitung

• Jasa Marga: 65%• PT Wijaya Karya: 20,00%• PT Pembangunan Perumahan: 15,00%

Manado- Bitung Toll road Business

Not yet operating

18 PT Jasamarga Pandaan Malang

• Jasa Marga: 60%• PT Pembangunan Perumahan: 35,00%• PT Sarana Multi Infrastruktur: 5,00%

Pandaan- Malang Toll road Business

Not yet operating

19 PT Jasamarga Jalanlayang Cikampek

• Jasa Marga: 80%• PT Ranggi Sugiron Perkasa: 20%

Jakarta- Cikampek II Elevated Toll road Business

Not yet operating

20 PT Jasa Layanan Pemeliharaan

• Jasa Marga: 99,7%• Inkopkar Jasa Marga: 0,3%

Construction service, Toll road maintenance, Toll Vehicle Rental

Beroperasi

21 PT Jasamarga Properti • Jasa Marga: 99,8%• Inkopkar Jasa Marga: 0,2%

Property Business Development, and Trading and Services

Operating

22 PT Jasa Layanan Operasi • Jasa Marga: 99,9%• Inkopkar Jasa Marga: 0,1%

Toll road Operation Services Operating

Remarks:*) Status is toll road operation status for toll road business and service/other businesses’ status for non-toll business.


Jasa Marga Profile

2016 Annual Report



Directors Report

Overview2016



TENTANg ENTITAS ANAk

1 PT Jalantol Lingkarluar Jakarta (JLJ)

JLJ is Jasa Marga subsidiary entity that works on toll road operation. JLJ main revenue is obtained from operation, maintenance, and security of Jakarta Outer Ring Road/JORR. JLJ was established on the 22nd December 2000

2 PT Marga Sarana Jabar (MSJ)

MSJ is Jasa Marga subsidiary entity that is established to run Bogor Outer Ring Road toll road business, that covers funding engineering planning, construction implementation, operation and maintenance of toll road, and other businesses in accordance to the applicable stipulations and law. The Bogor Outer Ring Road (BORR) Toll road Section 1 of 3,8 km long is operated since 23rd November 2009 and Section 2A of 2 km long operated since 4th June 2014. MSJ was established on 11th May 2007

3 PT Trans Marga Jateng (TMJ)

TMJ is Jasa Marga subsidiary entity that was established to conduct Semarang-Solo Toll road business that covers funding, engineering planning, construction implementation, operation, and maintenance of toll road, as well as other businesses in accordance to the applicable stipulations and law. Semarang-Solo Toll road Section 1 of 10,8 km long has been operating since 12th November 2011 and Section 2 of 12,3 km operating since 4th April 2014. TMJ was established on the 7th of July 2007

Commitee

· Komisaris Utama: Firmansjah· Komisaris: Siswadi· Direktur Utama: Yudhi Krisyunoro· Direktur: Satria Ganefanto

Financial Overview (Rp billion)

Keterangan 2015 2016 Pertumbuhan (%)

Total Aset 123.6 135.1 9.3

Commitee

• KomisarisUtama:AggiTjetje• Komisaris:SarwonoOetomo• Komisaris:Mulyadi• DirekturUtama:HendroAtmodjo• DirekturKeuangan:MuhdorNurohman• DirekturTeknik&Operasi:TitaPaulina



Total Aset 851.0 1,671.4 96.4

Commitee

• KomisarisUtama:IrawanSantoso• Komisaris:ReynaldiHermansjah• Komisaris:Sunaryo• DirekturUtama:DjadjatSudradjat• DirekturAdministrasi&Keuangan:HalimWahjana• DirekturTeknik&Operasi:AliZainalAbidin



Total Aset 4,475.2 5,604.8 25.2

Per 31 Desember 2016







4 PT Jasamarga Surabaya Mojokerto (JSM)

MNA is Jasa Marga subsidiary entity that was established to implement the business activity in the project implementation that covers development, operation and maintenance of the Surabaya-Mojokerto Toll road in accordance to the applicable law. MNA is established on 19th of August 1994. Surabaya-Mojokerto Toll road Section 1A of 2,3 km long has been operating since 5th September 2011

5 PT Jasamarga Bali Tol (JBT)

JBT is Jasa Marga subsidiary entity that was established to implement the business of Nusa Dua-Ngurah Rai-Benoa Toll road that covers funding, engineering planning, construction implementation, operation & maintenance of Nusa Dua-Ngurah Rai-Benoa Toll road, as well as other businesses, in accordance to the applicable stipulation and law. JBT was established on 22nd August 2011. Nusa Dua-Ngurah Rai-Benoa Toll road of 10 km long, was inaugurated by the President of RI at that time, Susilo Bambang Yudhoyono on the 24th September 2013.

6 PT Marga Lingkar Jakarta (MLJ)

MLJ is Jasa Marga subsidiary entity that was established to implement the JORR W2 North Toll road Business that covers funding, engineering planning, construction implementation, operation and maintenance of JORR W2 North Toll road and other businesses in accordance to the applicable stipulations and law.MLJ was established on the 24th August 2009. JORR W2 North Toll road operation was inaugurated by the Minister of Public Works, Djoko Kirmanto on 27th December 2013 and has been fully operated for 7,7 km long since 22nd July 2014

Commitee

• KomisarisUtama:AgungYunanto• Komisaris:AmienMoeladi• Komisaris:MuhNajibFauzan• DirekturUtama:BudiPramono• DirekturKeuangan:SyafaruddinA.R.• DirekturTeknikdanOperasional:AriWibowo• DirekturAdministrasi&Umum:KamilRusnandar



Total Aset 3,278.6 3,832.5 16.9

Commitee

• KomisarisUtama:AbdulHadiHasbullah• Komisaris:USaefudinNoer• Komisaris:IGustiPutuNuriatha• Komisaris:KomyangRakaSwandika• Komisaris:RobertDanielWaloni• Komisaris:IWayanBlayuSuarjaya• DirekturUtama:AkhmadTitoKarim• DirekturKeuangan:RonnyHaryanto• DirekturTeknik&Operasional:AliSodikin



Total Aset 1,955.7 1,938.3 (0.9)

Commitee

• KomisarisUtama:SatyaHeragandhi• Komisaris:FransS.Sunito• Komisaris:TaruliM.Hutapea• DirekturUtama:EdwinCahyadi• DirekturKeuangandanUmum:SonhadjiSurahman



Total Aset 1,934.7 2,015.5 4.2


Jasa Marga Profile

2016 Annual Report



Directors Report

Overview2016



7 PT Transmarga Jatim Pasuruan (TJP)

TJP is Jasa Marga subsidiary entity that was established to implement Gempol-Pasuruan Toll road Business that covers funding, engineering planning, construction implementation, operation, and maintenance of Gempol-Pasuruan Toll road as well as other businesses in accordance to the applicable stipulation and law. TJP was established on 28th June 2010. Until 31st December 2015, Gempol-Pasuruan Toll road has not yet operating as it is still in the stage of land release and construction. It is expected that Gempol- Pasuruan Toll road will be operated on 2017

8 PT Jasamarga Pandaan Tol (JPT)

JPT is Jasa Marga subsidiary entity that was established to implement Gempol-Pandaan Toll road Business that covers funding, engineering planning, construction implementation, operation, and maintenance of Gempol-Pasuruan Toll road as well as other businesses in accordance to the applicable stipulation and law. JPT was established on 25th September 1996. Gempol-Pandaan Toll road of 13,61 km long was inaugurated by President of RI Joko Widodo on 12th June 2015.

9 PT Marga Trans Nusantara (MTN)

MTN is Jasa Marga subsidiary entity that was established to implement Kunciran-Serpong Toll road Business that covers funding, engineering planning, construction implementation, operation, and maintenance of the toll road as well as other businesses in accordance to the applicable stipulation and law. MTN was established on 14th May 2008. Until 31st December 2015, Kunciran- Serpong Toll road has not yet operating as it is still in land release stage.

Commitee

• KomisarisUtama:ChristantioPrihambodo• Komisaris:Moh.NoorMarzuki• Komisaris:Imron,Ak.• DirekturUtama:AgusPurnomo• DirekturKeuangan:SyachrianiAtim• DirekturTeknik:Rahardjo



Total Aset 1,321.2 1,577.8 19.4

Commitee

• KomisarisUtama:Muslim• Komisaris:RudyHermawanKarsaman• DirekturUtama:Setiyono• DirekturKeuangan&SDM:TriRiyaningsih• DirekturOperasi&Umum:BahrulAlam



Total Aset 1,235.8 1,260.2 2.0

Commitee

• PresidenKomisaris:IrawanSantoso• WakilPresidenKomisaris:Subagyo• Komisaris:WiwiekDianawatiSantoso• PresidenDirektur:AgusAchmadi• Direktur:RachmatSoulisa



Total Aset 976.7 1.674.7 71.5







10 PT Jasamarga Kunciran Cengkareng (JKC)

JASAMARGA KUNCIRAN CENGKARENGPENYELENGGARA JALAN TOL KUNCIRAN-CENGKARENGKelompok Usaha Jasa Marga

MKC is Jasa Marga subsidiary entity that was established to implement Kunciran-Cengkareng Toll road Business that covers funding, engineering planning, construction implementation, operation, and maintenance of Kunciran-Cengkareng toll road as well as other businesses in accordance to the applicable stipulation and law. MKC was established on 14th May 2008. Until 31st December 2015, Kunciran-Cengkareng Toll Road has not yet been operating as it is still in land release stage.

12 PT Solo Ngawi Jaya (SNJ)

SNJ is Jasa Marga subsidiary entity that was established to implement Solo-Ngawi Toll road Business that covers funding, engineering planning, construction implementation, operation, and maintenance of Solo-Ngawi Toll road as well as other businesses in accordance to the applicable stipulation and law. SNJ was established on 24th March 2009. Until 31st December 2015, Solo- Ngawi Toll road has not yet been operating as it is still in the stage of land release and construction

Commitee

• KomisarisUtama:DediKrisnariawanSunoto• Komisaris:MohamadbinHusin• DirekturUtama:AlbertMP.Silaen• DirekturKeuangan:ZaidibinIbrahim



Total Aset 1,127.9 1,432.0 27.0

11 PT Jasamarga Kualanamu Tol (JKT)

JMKT is Jasa Marga subsidiary entity that was established to implement Medan-Kualanamu- Tebing Tinggi Toll road Business that covers funding, engineering planning, construction implementation, operation, and maintenance of Medan-Kualanamu-Tebing Tinggi Toll road as well as other businesses in accordance to the applicable stipulation and law. JMKT was established on 25th November 2014. Until 31st December 2015, Medan-Kualanamu-Tebing Tinggi Toll

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