The state construction firm, PT Adhi Karya Tbk (IDX: ADHI) received the project payments worth of Rp1.6 trillion (US$114.29 million) - Photo: Privacy

JAKARTA (TheInsiderStories) – The state construction firm, PT Adhi Karya Tbk (IDX: ADHI) received the project payments worth of Rp1.6 trillion (US$114.29 million), said the management today. The first payment from the light rapid transit (LRT) project Rp1.1 trillion from railway manager, PT Kereta Api Indonesia (KAI).

Overall, the company has received total payment for the construction of LRT projects around Rp13.3 trillion. The issuer also get payment for the Banda Aceh – Sigli Toll Road project of Rp500 billion from toll road operator, PT Hutama Karya. In total, the developer has received payment from the projects of Rp2.0 trillion.

This year, Adhi Karya is optimistic that the acquisition of new contracts will grow in the range of 15 – 20 percent, driven by the large government spending for the infrastructure financing amounting to Rp414 trillion, increased by 47 percent from a year ago. The CEO, Enthus Asnawi, said the acquisition of new contracts until November 2020 has reached Rp17.3 trillion.

95 percent of these projects from the construction and energy projects. Then, 5 percent from property and others. In terms of the type of projects, 62 percent were road construction, 16 percent building construction projects, 14 percent other categories such as irrigation and residential gas pipelines, and 8 percent is an Mass Rapid Transit project.

Now. the publicly listed company ready to build the LRT lines from Cibubur in East Jakarta to Bogor in West Java. The phase I of the LRT project has been built since Sept. 1, 2015 with total costs Rp22.8 trillion. It said, for the new lines the investment cost more cheaper, because most of the rail build on the land.

The lines have length more than 25 kilometers with an estimated investment of Rp10 trillion. As for LRT Jabodetabek, other shareholder, KAI has test the locomotives and carriages made by PT Industri Kereta Api.  The distance between the train was only three minutes.

In addition to the LRT projects, currently, Adhi Karya is conducting a study to create an loop line (elevated railway) around the Jakarta region to reduce the congestion between the road and the train door. The elevated railway is planned to be built 20 kilometers with an estimated investment Rp15 trillion.

“We have obtained permission from the Governor of Jakarta and PT Jaya Construction (Jakon) to study the project,” said the CEO.

Another project that will be developed are transit oriented development (TOD). This year, Adhi Karya plans to build 18 TOD along the LRT lines. The project is planned to be carried out by its subsidiary PT Adhi Commuter Property (ACP). The unit has been injected with an initial capital Rp2 trillion.

These investments will be funded from various sources such as the establishment of equity funds, bond issuance at the end of this year, list it subsidiaries shares and a capital injection from the government. For the equity funds, the issuer will form special purpose vehicle to get fresh funding for the projects. Initial target through the equity funds around Rp6 trillion.

US$1: Rp14,000

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