JAKARTA (TheInsiderStories) - After bought 30 percent Medan - Kualanamu shares from PT Waskita Toll Road, now Hong Kong firm, Kings Key Ltd., bough 15 percent shares of PT Jasamarga Kualanmu Toll from PT PP Tbk (IDX: PTPP). The sales purchase agreement with estimated values of Rp412 billion (US$28.41 million) has been signed last week.
Kings Ring is part of the Road King Expressway International Holding Ltd., a group which is one of the investors and toll road operators in the East Asia Region. While, Jasamarga Kualanamu Tol is a company engaged in the concession of toll roads for the Medan - Kualanamu - Tebing Tinggi section which was formed in 2014 and has been operating since 2016 with a length of 61.7 kilometers.
The toll Road has connected Medan city and its surroundings to Kualanamu Airport, which is located in Deli and Tebing Tinggi in North Sumatera. This section will also be connected to the Belawan - Medan - Tanjung Morawa toll road. According to the CEO, Novel Arsyad, the proceeds from the asset sale will be used for working capital and the development of other infrastructure investment projects owned by PTPP.
To fulfill the investment needs in this year, the state-own construction firm also plans to issues local bond up to Rp2 trillion to refinance the maturing debts and business expansion. In 20201, the contractor targeting new contract grow 35 percent to Rp30.1 trillion from 2020 amounted to Rp22 trillion. With these targets its expecting the operating income and net profit rises around 40 and 50 percent, respectively.
As of the first quarter of 2021, PTPP has pocketed a new contracts of Rp2.5 trillion. Based on the sector, the new contracts were dominated by the construction sector, which reached 44 percent, EPC 11 percent from the units, PT PP Properti at 4 percent, PT PP Urban by 9 percent, PT PP Presisi 28 percent, PT PP Infra 4 percent, and PT PP Energi at 1 percent.
This year, the constructor is in the process to divest at least four toll roads to a number of strategic investors with a target fund up to Rp1.6 trillion by the end of this year. The divestment include the Pandaan – Malang (15 percent) and Medan – Kuala Namu – Tebing Tinggi Toll Road (35 percent).
Arsyad said that the divestment are part of PTPP‘ strategy to get a new contract worth of Rp25 trillion in 2020. He explained, the buyers of the toll road assets came from several domestic investors, who were considered big players.
This year, the issuer ready to spends Rp7.5 trillion of capital expenditure, derived from retained earning, dividends from the subsidiaries, bank loans, divestment, bond and equity. This year, the company claimed that it will be hassle to achieve double digit growth for revenue and net profit.
Then recurring income assets are derived from water supply system projects in Bekasi in West Java and Tangerang. The developer also wants to strengthen recurring income’ businesses from toll and renewable energy, like biomass energy project for East Indonesia.
Currently, the contractor managed several projects such as two steam power plants in East Nusa Tenggara and North Sulawesi with total costs Rp8 trillion. The capacity of each steam power plant is 2×50 megawatts (MW). The first steam power plant was carried out on an area of 30 hectares in West Kupang, East Nusa Tenggara.
The second steam power plant was built on 32 hectares of land in the Bolaang Mongondow, North Sulawesi. The construction firm was optimistic to complete the first projects in West Kupang in three years time and in Bolaang Mongondow in 39 months.
Its also expected the two steam power plants will be ready to operate in 2022, so it will be able to electrify several villages and sub-districts in the East Nusa Tenggara and North Sulawesi regions. PTPP also become a contractor for ferro nickel smelter construction located in Kolaka, Southeast Sulawesi with a total investment of Rp14.5 trillion. The contractor has signed a contract to build a smelter with PT Ceria Nugraha Indotama as an investor in April 2019.
The developer will be cooperate with Chinese’ ENFI consortium to construct the smelter project. The management said that the project to build the ferronickel smelter will require an investment of Rp4 trillion in the first phase. The plant has a total capacity of 4×72 MVA and targeting to operate in 2021. The production is projected to reach 229,000 tons of ferronickel annually.
In addition, the company also eyes construction projects in the Philippines and port development project in Malaysia worth of Rp2 trillion, after getting the project in Vietnam with worth of Rp500 billion.
US$1: Rp14,500
Written by Editorial Staff, Email: theinsiderstories@gmail.com