Dear Respected Stakeholders,

Praise and gratitude to the presence of God Almighty, PT Jasa Marga (Persero) Tbk (“Jasa Marga” or “the Company”) was able to pass 2021 with quite a good performance.

On behalf of the entire Board of Directors and management, allow us to convey the achievements of the Company’s performance and management activities during 2021, especially in the effort to realize the Company’s Vision, Mission, and goals and contributions to our beloved country, Indonesia.

Economics and Industry Overview in 2021

The year 2021, the second year of the COVID-19 pandemic, was still a year full of challenges for all parties. However, all countries are optimistic about getting out of the crisis caused by this pandemic through various efforts and policies.

The global economic recovery was predicted to continue. The International Monetary Fund (IMF) projections in the latest release of the World Economic Outlook (WEO) stated that the global economy would grow by 5.9% in 2021 and 4.9% in 2022.

"To ensure business management is in line with the direction of achieving the Company’s Vision and Mission, in 2021, Jasa Marga will focus on increasing productivity and restoring performance through the implementation of strategic initiative programs."

The solid projection of the global economy is supported by the addition of a robust fiscal stimulus and accelerated vaccinations that would allow wider reopenings, particularly in developed countries such as United States of America and Europe. However, there has been uneven recovery in the global economic due to differences in the COVID-19 pandemic situation, speed of vaccination, and support for economic stimulus.

Indonesia’s economy shows improvement with diminishing contractions in 2021, growing by 4.5% year-over-year (YoY), the highest in the last 16 years. Improvements occurred in all sectors with a contraction that eased and positive growth in the other six sectors. The economic recovery was driven by higher performance in the external sector and continued fiscal stimulus. The speed of recovery in the transportation and warehousing sector was considered the slowest in line with the mobility restrictions.

Fiscal developments showed an increase in both income and expenditure. Realization of state revenues and grants reached 114.9% of the 2021 State Budget (APBN) target. Meanwhile, state expenditure realization reached 101.3% of the 2021 State Budget. Realization of social assistance had reached 97.8% of the ceiling driven by social assistance programs in the context of economic recovery for the poor and vulnerable poor. Meanwhile, the realization of Transfers to Regions and Village Funds (TKDD) was 3.0% higher compared to the December 2020 period. Based on the realization of these revenues and expenditures, the budget deficit as of December 31, 2021, was Rp783.7 trillion, or around 4.7% of Gross Domestic Product (GDP).

From the monetary side, BI7DRR was lowered to 3.5% since February to accelerate economic recovery amidst low inflation. Inflation rate in 2021 was 1.9% (YoY), the progress of inflation in 2021 would be affected by a decline in core inflation and weak domestic demand as a result of the COVID-19 pandemic. Up to December 2021, Bank Indonesia added liquidity in banking at around Rp147.8 trillion (per 2021). Monetary expansion was also strengthened by purchasing Government Securities (SBN) in the primary market. Meanwhile, the rupiah exchange rate weakened in line with rising US Treasury yields, which hampered the flow of foreign capital into Indonesia.

The COVID-19 virus high cases spread from the beginning to the middle of 2021 had an enormous influence on the performance of the toll road industry. This is due to people’s decreased mobility who avoided being exposed to the COVID-19 virus, and the Government decided to extend the Implementation of Community Activity Restrictions (PPKM) in many areas in the country. These things caused the volume of vehicles that pass on the toll road to decrease significantly.

However, the toll road industry still promises vast potential. As a developing country with an extensive area, toll roads are necessary. Toll roads function to improve connectivity between regions, and the flow of goods and services and community mobility can be further enhanced to facilitate the movement of people, goods, and services.

The construction of toll roads is one of the infrastructures included in the National Strategic Project (PSN) in the Joko Widodo (Jokowi) administration era. The Government will continue to build toll roads until 2024. The toll roads included in the 2020-2024 National Strategic Projects list under President Jokowi’s leadership include 53 toll roads. By the end of this year, the Government is targeting to add 346 km of toll roads, of which 97 km have been operating.

Referring to the 2020-2024 National MediumTerm Development Plan (RPJMN), the Ministry of Public Works and Public Housing (PUPR) targets the addition of Indonesia’s toll roads to reach 5,103 kilometers (km) by 2024.

The high target set by the Government is an effort to encourage growth and equitable distribution of the national economy. The Government believes that toll road development has a close correlation with national economic growth.

Strategic Policy

To ensure business management was in line with the direction of achieving the Company’s Vision and Mission, in 2021, Jasa Marga focused on increasing productivity and restoring performance through implementing strategic initiative programs. The Company has formulated strategic initiatives in the context of sustainable transformation, including: 1) Fix Fundamentals; 2) Core Business Expansion; 3) Related Business Expansion; 4) Financing and Asset Recycling; 5) Organization, Human Resources, and Capabilities; 6) Technology.

Jasa Marga’s policies in ensuring Fix Fundamentals by integrating the management of toll roads by JMTO include: (i) the Medan-Kualanamu-Tebing Tinggi toll roads, with Belawan-Medan-Tanjung Morawa, and Medan-Binjai; and (ii) the MBZ Sheikh Mohamed Bin Zayed Elevated toll road with the Jakarta-Cikampek toll road. In addition, the Company initiated the formation of an Investment Committee to provide consideration for appropriate investment decisions to increase the value of Jasa Marga as a business group. To increase business and operational efficiency, Jasa Marga formalized the standardization of unit costs and joint services in the form of standardized fuel costs for operating vehicles and official vehicles and operating and maintenance costs.

The Core Business Expansion strategy developed traffic projections, budgets, and project control and actively financed its data-based toll road concession subsidiaries. In addition, Jasa Marga has implemented the business model transformation of PT Jasamarga Tollroad Operator (JMTO) and PT Jasamarga Tollroad Maintenance (JMTM) from labor and volume-based to technology and contractbased based on operating performance.

Meanwhile, in the Related Business Expansion strategy, the Company, through its subsidiary PT Jasamarga Related Business (JMRB), has redefined the business focus and business model of related business development to support the optimization of toll road assets owned by the Company.

As for the Financing and Asset Recycling strategy, Jasa Marga established a portfolio management framework, and support corporate actions, as well as organized an IPO for the Transjava toll road. In addition, the Company was also seeking and implementing asset recycling, one of which is PT Marga Lingkar Jakarta (MLJ) and PT Jasamarga Pandaan Malang (JPM).

In the Organization, Human Resource and Capabilities strategy, Jasa Marga optimized the strategic role of the Jasa Marga business group by improving business processes and interaction models. The Company also implemented Human Capital Architecture and Crash Training programs for operational employees and developed data analytic capabilities.

To create a competitive advantage, Jasa Marga optimized the role of technology in business management. In 2021, the Company implemented an integrated technology development roadmap through JMTC, IMS, SLFF trials, and integrated human capital applications development through JM Click.

The Role of the Board of Directors in Strategic Policy and Strategy Formulation

The Board of Directors as top management plays an important role in formulating Companies strategies and strategic policies. The corporate strategies and strategic policies are outlined in the document of Company’s Long-Term Plans (RJPP).

The formulation of strategies begins with brainstorming between the Board of Directors and Board of Commissioners through visioning workshop to determine the directives of Company’s Vision and Mission. Taking into account the results of Company’s external and internal analysis, the Board of Directors subsequently prepares Company’s strategic directives, classified into several bigger themes to accomplish Company’s Vision and Mission. The Board of Directors develops strategic directives for each business line of the Company so they can be clearly guided based on Company’s business groups.

In addition, the Board of Directors will formulate strategic directives as provisions or regulations for the Company to carry out its business activities. The strategic plans are prepared and refined by the Board of Directors by involving related units through limited implementation of meetings.

The results of the formulation of Company’s strategies and strategic policies will be submitted by the Board of Directors to the Board of Commissioners through approval in the RJPP.

Processes Performed by the Board of Directors to Ensure Strategy Implementation

To ensure that the implementation of Company’s strategies is carried out in accordance with their strategic directives, the Company prepares work plan every year in the Company’s Work and Budget Plan (RKAP), referring to the ratified RJPP. However, Company’s performance targets also consider the aspiration letter of the shareholders issued by the Ministry of SOEs as the Company’s majority shareholders.

Work plan is arranged by all Company’s business lines by taking into account targets of operational goal accomplishment, development, finance, and human resources. All work plans that are to be carried out will be selected based on the analysis of cost-benefit and require approval by the Board of Directors.

In addition, to monitor the implementation of strategies, the Board of Directors also conducts monitoring activities periodically to evaluate Company’s performance achievement in the aspects of (i) economic and social values for Indonesia, (ii) innovation of business models, (iii) technological leadership, (iv) increase in investment, and (v) talent development.

Processes Performed by the Board of Directors to Ensure Strategy Implementation

The COVID-19 pandemic was still the main challenge faced by the Company in 2021. The high number of COVID-19 spreads had prompted the Government to take the initiative to conduct PPKM in various regions. The PPKM regulation limits office occupancy to a maximum of 50%, directly affecting the Company’s operational activities.

Facing these conditions, the Company adopted a policy to implement a Work from Home (WFH) system. The Company required employees to continue to confirm attendance through the integrated Human Capital application, JM Click. In addition, utilizing online meeting media, communication and information sharing, and monitoring of work can still be carried out so that work can be completed properly.

As for employees who had to carry out activities in the office, the Company enforced strict health protocols following Government recommendations. Likewise, with workers in the field, the Company also implemented strict health protocols to avoid the spread of COVID-19.

In addition, with more and more new toll roads operating in 2021, the Company’s interest expense would also increase. On the other hand, the toll revenue generated by the new toll road sections was still not optimal. Therefore, the Company sought to propose relaxation to banks, alternative funding that best suits the Company’s conditions, and reviewed the operating schedule for new toll road sections.

Jasa Marga Performance in 2021

Amid the pandemic, Jasa Marga could still record a good performance. From the financial aspect, the Company targeted that in 2021 it would achieve toll revenues of Rp9,891.6 billion, other operating revenues of Rp911.7 billion, and a net profit of Rp86.3 billion.

In the aspect of business development, the Company already has a toll road concession of 1,603 km, 1,246 km of which are already operational. The addition of the operating toll road length in 2021 was implemented on the Bogor Outer Ring Road Section 3A with 2.9 km long on January 2021; SerpongCinere toll road Section I Serpong-Pamulang with 6.5 km long in April 2021; Cengkareng-Batu CeperKunciran toll road with 14.2 km long in April 2021, and Balikpapan-Samarinda toll road Section I and V with 32.4 km long in August 2021.

As for achievement from the operational side, the Company has recorded transactional traffic volume for 2021 at 1,066.4 million transactions, achieving 7.4% of the planned 992.5 million transactions. Traffic volume growth trend showed an increase of 8.0% compared to 2020. This was due to the increase in the frequency of community mobility that went along with the acceleration of COVID-19 vaccination program.

From the financial aspect, the Company recorded non-construction operating revenues of Rp11,776.4 billion with contributions including from toll revenues of Rp10,786.3 billion and other operating revenues of Rp990.1 billion. In line with the Company’s reasonable control over operating expenses, especially related to supporting administrative activities that affect general and administrative expenses, EBITDA performance was realized at Rp7,675.5 billion or 16.3% of the plan.

Meanwhile, the realized interest expense was 7.6% below the plan, the realization of lower interest expense influenced this due to the lower BI 7-dayrepo rate and the Company’s efforts to refinance bank loans to obtain a lower interest rate.

On June 28, 2021, the Company conducted two corporate actions, namely divestment of Company’s share ownership at PT Marga Lingkar Jakarta (MLJ) at 14% (June 28, 2021) and at PT Jasamarga Pandaan Malang (JPM) at 9% (December 30, 2021). These corporate actions were carried out to strengthen the Company’s capital structure in the middle of massive construction of new toll roads. From the corporate actions, the Company gained Rp786.5 billion from PT MLJ and Rp796.8 billion from PT JPM. Therefore, the company posted a net profit of Rp1,615.3 billion in 2021 or realized 1,771.6% of the plan amounting to Rp86.3 billion.

Comparison Between Target and Realization

In general, the Company’s performance in 2021 succeeded in achieving the targets set in the Company’s Work Plan and Budget (RKAP) 2021. Even though conditions in various business sectors generally decreased, the Company continued to strive to optimize the achievement of Key Performance Indicator (KPI) targets and maintain a healthy level of Company in 2021.

Achievement from the side of Corporate Key Performance Indicator in 2021 was 104.6 or 104.6% of the plan. This is due to the achievement of five performance perspectives, namely the performance of economic and social values for Indonesia, business model innovation, technology leadership performance, investment enhancement performance, and talent development performance.

Jasa Marga’s Business Outlook

The process of global economic recovery due to the COVID-19 pandemic continued and was going quite well. Meanwhile, IMF recalculated the projection of Indonesian economic growth for 2021 to 3.2%. Likewise, world economic growth in 2021 decreased from 6.0% to 5.9%. This projection adjustment by the IMF was due to the mutation of the COVID-19 variant, inflation risk, capital market volatility, and a decrease in economic stimulus in various countries.

Indonesia’s economic growth in 2021 grew by 4.5% (YoY). Improvements occured in all sectors with reduced contraction and positive growth in the other six sectors. The economic recovery was driven by higher performance in the external sector and continued fiscal stimulus. The speed of recovery in the transportation and warehousing sector was considered the slowest in line with the mobility restrictions still in effect.

Along with implementing the vaccination program in 2021, the Government had carried it out on a massive scale, forming herd immunity in the broader community. This was expected to provide collective health protection, encouraging community mobility to resume activities while implementing health protocols. The improvement in these conditions has become hope and optimism for the Company for performance recovery and financial sustainability to build the resilience of Jasa Marga.

Corporate Governance Implementation

The COVID-19 pandemic has become a meaningful lesson for Jasa Marga, particularly about risk mitigation measures prepared by the Company to deal with extraordinary events. The Company conducted a thorough review of the impact caused by the pandemic. Although the pandemic conditions did not result in changes in the main risks for the Company, the Company had also set mitigation measures to anticipate when a similar incident would occur again. The Company has made changes and improvements to work procedures and coordinated with related parties.

Risk management is a part of implementing the principles of Good Corporate Governance (GCG), namely transparency, accountability, responsibility, independence, and fairness. Jasa Marga is committed to making the principles of Good Corporate Governance (GCG) an integral part of the Company’s operational activities. In 2021, the Company disseminated the Anti-Bribery Management System (ABMS) 2 (two) times, aiming to provide an understanding of ABMS and measure the level of knowledge of the material presented. The materials presented included Introduction to ABMS, Commitment to Implementation of ABMS, Governance of ABMS Implementation, General Provisions for Implementation of ABMS, Supervision of Anti-Bribery Activities. This was one of the efforts made by the Company to continuously improve the quality of the implementation of Good Corporate Governance (GCG).

To measure the effectiveness and suitability of the implementation of Good Corporate Governance (GCG) within the Company, Jasa Marga also routinely conducts Good Corporate Governance (GCG) assessments which are part of the check and balances mechanism. With an appraisal, the achievement of an activity can be known with certainty, and further action to improve the performance of an activity can be determined.

In 2021, the Good Corporate Governance (GCG) assessment was carried out independently by Jasa Marga (self assessment) using the assessment parameter of the Ministry of SOEs, namely No. SK-16/S.MBU/2012 dated June 6, 2012, concerning Indicators/Parameters of Assessment and Evaluation of the Implementation of Good Corporate Governance in State-Owned Enterprises. Based on the assessment results, the Company received a score of 98.20 with the predicate of “Very Good.” This achievement is higher than the previous year’s assessment results, where the Company achieved a score of 98.16 with the predicate of “Very Good”.

Assessment on Performance of Committees under Board of Directors and the Assessment Framework

To support the implementation of its duties and responsibilities, the Board of Directors has established 2 (two) Committees responsible for specific fields, namely the Risk Management Committee and the Information Technology Steering Committee. The two committees are tasked with reviewing and providing recommendations related to their respective fields, both for current and future conditions.

In 2021, the Risk Management Committee carried out its duties through meetings with the agenda of reviewing policies and the Company’s strategic risk management team, monitoring corporate risk profiles, monitoring risk management plans, discussing corporate actions/Company strategic plans, and evaluating the results of measuring the maturity of integrated corporate risk management. The Risk Management Committee had also provided implementation directions during an emergency, work plans, and control over emergency conditions during the COVID-19 pandemic.

Meanwhile, the Information Technology Steering Committee (IT Steering Committee) had provided direction regarding the development of Information Technology, both IT Enterprise and IT Business. Currently, Jasa Marga has an Internet of Things (IoT) laboratory that functions as a research and development unit related to IT, which aims to enrich Jasa Marga’s internal competencies for toll road operation technology such as Single Lane Free Flow (SLFF), Electronic Toll Collection (ETC), Intelligent Transportation System (ITS), and Automatic Vehicle Classification (AVC).

In addition, in connection with the ongoing COVID-19 pandemic in 2021, the Information Technology Steering Committee also provided directions regarding Information Technology in facilitating employees to work from home and use a Virtual Private Network (VPN) to reduce the spread of COVID-19 so that business processes the Company is still doing well.

The Board of Directors considers, during 2021, the Risk Management Committee and the Information Technology Steering Committee had carried out their duties and responsibilities well.

Change in Board of Directors Composition

In 2021 there were 2 (two) changes in the composition of the Board of Directors. The first amendment was based on the 2020 Annual General Meeting of Shareholders (GMS) on May 27, 2021. The Shareholders unanimously confirmed the dismissal of Mr. Mohammad Sofyan as Director of Business.

The second change occurred during the Extraordinary GMS on December 22, 2021, by appointing Mr. Ade Wahyu as Director of Finance and Risk Management, Mr. Reza Febriano as Director of Business, Mr. Bagus Cahya Arinta B. as Director of Human Capital and Transformation, transferring Mr. Mohamad Agus Setiawan’s duties who initially served as Director of Business became Director of Business Development and confirmed the dismissal of Mr. Donny Arsal as Director of Finance and Risk Management in connection with the appointment of a new assignment as President Director of PT Semen Indonesia on December 21, 2021.

Accordingly, the composition of Jasa Marga’s Board of Directors as of December 31, 2021, is as follows:

President Director : Subakti Syukur
Director of Finance and Risk Management : Ade Wahyu
Director of Business : Reza Febriano
Director of Business Development : Mohamad Agus Setiawan
Director of Human Capital and Transformation : Bagus Cahya Arinta B.
Director of Operations : Fitri Wiyanti

On behalf of the Company, we would like to thank Mr. Mohammad Sofyan, Mr. Donny Arsal, Mr. Enkky Sasono Anas Wijaya, and Mr. Arsal Ismail for their dedication while serving as members of the Company’s Board of Directors.


With all the Company’s achievements in 2021, allow the Board of Directors to express gratitude to God Almighty for the smooth operation of the Company’s operations and business. The Board of Directors would like to thank all shareholders and investors for the trust that has been given. The Board of Directors also expresses respect and gratitude to the Board of Commissioners for their direction and strategic partnership in managing the Company’s operations and business. Likewise, to regulators, customers, suppliers, and business partners, the Board of Directors would like to thank you for the cooperation that has been created.

To all Jasa Marga people, the Board of Directors expresses the highest appreciation for the dedication and hard work that has been given throughout the challenging 2021. All of this hard work and brilliant work will be the foundation for the Company to optimize its potential and achieve its best performance in the future.

Jakarta, April 5, 2022

On Behalf of the Board of Directors

Subakti Syukur

President Director