JAKARTA (TheInsiderStories) - State own investment & construction developer PT PP Tbk (IDX: PTPP) will allocated a capital expenditure of Rp 10.4 trillion to build 4,000 Megawatt (MW) power projects with Independent Power Producer (IPP) scheme in the next three years, said the director. PT PP Energy
In 2017, PTPP targets to get the project amounted to 610 MW while recently PTPP has secured a renewable energy power generation projects with a capacity of 10 MW. Abdul Haris Tatang, director PTPP optimistic in the near time won two power plant projects with a capacity of 200 MW.
For information, since June PTPP has been bidding for four power plants namely power plant Bangka 1 (2 x 100 MW) power plant in Central Kalimantan 3 (2 x 100 MW) power plant Kaltim 3 (1x 200 MW) and power plant Kaltim 6 (1x 200 MW). PTPP has set up a new subsidiary to run its energy business venture, called PT PP Energy.
A number of projects acquired company until the end of Oct. 2016 include two toll roads worth Rp3 trillion and Rp2.7 trillion, PLMTG Lombok Peaker 130-150 megawatts (MW) Rp1,42 trillion, MNP Package B & C Reclamation Rp891 billion.
Another project is a mobile power plant of 500 megawatts of Rp739 billion, which was in eight locations, building BNI Tower Rp714 billion, Rp655 billion project Tunjungan Boulevard, Lampung Sukoharjo Dam 55 billion, and so on.
PTPP optimistic construction sector will still be very bright. Therefore, the company expects to raises the new contract of Rp 40.3 trillion in 2017, or up 30 percent from this year’s target of Rp 31 trillion. While revenues and profit is expected to grow 30 percent from this year’s target of Rp 19 trillion and Rp 1.1 trillion.
Meanwhile, CEO of PTPP Tumiyana adding, a total of 40 Taiwan-based company’s CEO expressed their interested in cooperation with the company to invest in Indonesia. He said, many Taiwanese companies interested in working with the company in various sectors such as energy (solar panel) and ports.
Previously, The company’s Marketing Director W. Karloka said that PTPP injected new capital Rp1.5 trillion in the new subsidiary to seek new business in three years period.
The new unit eyes two power plant projects in 2016 with capacity 2×200 megawatts (MW) in West Kalimantan with total costs of Rp5 trillion ($362.32 million). At present, PTPP owns two power plant projects in Lampung and South Sumatera with total capacity of 90 MW.
Director for Business Development, Research & Technology Lukman Hidayat added that in 2016 PTPP eyes new contract worth Rp30 trillion and carried-over projects from 2015 worth Rp25 trillion, mostly infrastructure projects such as toll road, port, power plant and property. The funding for the projects comes from the rights issue, bank loan and internal cash.
PTPP plan to raise funds from rights issue of Rp4.41 trillion by issuing 1.78 billion new shares. The government has a portion of Rp2.25 trillion from the rights issue. In addition, PTPP targets to launch the IPO of its subsidiary PP Pracetak and PP Alat in first half of 2017, followed by PP Energi and PP Infrastruktur in fourth quarter 2017.
The company targets to raise its equity five times to Rp25 trillion in the next 3-4 years. PP Precast targets to raise Rp1.1 trillion with new equity, while PP Peralatan and PP Energi targets to raise Rp1.15 trillion and Rp4 trillion respectively.