JAKARTA. PT Gudang Garam Tbk (GGRM), one of the biggest cigarette manufacturers in Indonesia, has established a new subsidiary called PT Surya Sapta Agung Tol (SSAT) as a Toll Road Business Unit for Kediri-Tulungagung Toll Road.

GGRM mentioned that SSAT has obtained acknowledgment from Minister of Law and Human Rights, according to the decision issued on February 12, 2024. SSAT was formed with an authorised capital of IDR 3.5 trillion, consisting of 3.5 million shares.

The issued and paid-up capital of SSAT is worth IDR 2 trillion, consisting of 2 million shares. For this subsidiary establishment, GGRM takes over 1,999,999 shares, equal to IDR 1.99 trillion. Meanwhile, the remaining 1 share, worth IDR 1 million belongs to PT Suryaduta Investama.

For the record, Suryaduta Investama is the controlling shareholder of GGRM. Suryaduta Investama’s portion in GGRM was recorded at 1.33 billion shares or equal to 69.29%.

“The purpose of establishing SSAT is to conduct business activities as a Toll Road Business Unit,” added the management of GGRM in the official statement.

According to IDNFinancials data, Kediri-Tulungagung Toll Road has a concession period of 50 years. This toll road is projected to operate in the second quarter of 2024.

GGRM recorded cash and cash equivalent of IDR 4.23 trillion as of September 2023. Its total assets were recorded at IDR 86.67 trillion, while its total equity reached IDR 60 trillion. (KR/ZH)