OBAYASHI CORPORATION announces that it will acquire shares in PT JTD JAYA PRATAMA ("JTDJP"), which is engaged in the toll road concession business in Jakarta, Indonesia, thereby entering the business there.

The Obayashi Group has defined the direction of its sustainable growth strategy as establishing a Group-wide business structure centered on the domestic construction business, in which businesses other than domestic construction generate performance equal to or greater than that of the domestic construction business. The Group aims to build a future business structure to achieve this goal. Infrastructure operations, including PPPs and concessions, are expected to generate stable cash flows, and the Obayashi Group positions them as important business opportunities that contribute to enhancing corporate value.

In Indonesia, Obayashi Corporation established PT. Jaya Obayashi in 1972 jointly with PT Pembangunan Jaya ("Jaya"), a leading local company. Since then, Obayashi Corporation has built a business foundation centered on the construction business and has deepened its partnership with Jaya.

JTDJP, a group company of Jaya, holds the concession rights for an approximately 31-kilometer toll road crossing central Jakarta, the capital of Indonesia, which faces a social issue of chronic traffic congestion. The total project cost is approximately JPY 213 billion. Although the toll road is currently open only in sections, demand is expected to increase and help mitigate severe congestion on existing local roads once land acquisition by the Indonesian government is done and the entire route is completed.

In addition, PT Jakarta Tollroad Development ("JTD"), a subsidiary of Jaya and the parent company of JTDJP, holds concession business rights for toll roads planned for development in Jakarta. The Obayashi Group is expected to obtain preferential rights to participate in these businesses.

For the acquisition of shares in JTDJP, Obayashi Corporation will establish PT Obayashi Concession Indonesia ("OCI"), a local subsidiary, through joint investment by Obayashi Corporation and PT. Jaya Obayashi. OCI will acquire 12.5% of the shares of JTDJP. Thereafter, subject to completion of land acquisition by the Indonesian government, OCI is scheduled to increase its ownership ratio to 48.8%.

The Obayashi Group will share with JTDJP the expertise it has cultivated through its construction businesses in Japan and overseas and support the enhancement and streamlining of its operations. Through these efforts, the Group will help enhance JTDJP's business value and support the growth of its concession business. At the same time, the Obayashi Group will strengthen its earnings capacity and expand its business portfolio, thereby enhancing corporate value and contributing to the resolution of social issues such as traffic congestion.