JAKARTA (TheInsiderStories) – Indonesian toll operator, PT Hutama Karya (HK) prepares investment up to Rp45 trillion or US$3.21 billion this year, said the chief executive on Tuesday (02/19). The funds will be used to support the construction of toll roads in Sumatra island.
CEO of HK Bintang Perbowo explained that the capital expenditure will be obtained from the company’ equity and Rp35 trillion from bank loans.
“We will use capital expenditure for the construction of toll roads in Sumatra, which has a project value of Rp260 trillion,” he explained.
Perbowo revealed, Hutama Karya did get a mandate to work on the Trans Sumatra Toll Road project provided by the government until the next 2024. The Trans Sumatra toll road has a length of around 2,700 kilometers (km) and several toll roads are in progressing.
One of the Sumatra toll road projects being worked on is the Indralaya-Muara Enim Intersection (110 km) and Muara Enim-Lubuk Linggau (125 km). The operator also working on the Bakauheni-Palembang toll road, which is targeted to be passed by Idul Fitri in 2019. Later, this toll road can cut travel from 12 hours to 5 hours, thus facilitating the activities of logistics companies.
Meanwhile, until the third quarter (3Q) of 2018, HK posted a net profit of Rp1.46 trillion or grew 131.39 percent from 2017 which amounted to Rp631 billion. The profit was the result of contributions from all existing business pillars of Hutama Karya with Construction Services, EPCs and Building buildings contributing 43.90 percent, Subsidiaries of 27.02 percent, and the remainder of Toll Road Business Entities (BUJT) of 29.08 percent.
The profit, Bintang continued, was obtained through sales of Rp17.75 trillion, which grew by 54.82 percent from Rp11.46 trillion in 2017.
Recently, State Own Enterprises ministry has appointed HK to lead infrastructure holding. The state-owned construction and developer such as PT Adhi Karya Tbk (IDX: ADHI) and PT Waskita Karya Tbk (IDX: WSKT) along with PT Jasa Marga Tbk (IDX: JSMR), PT Yodya Karya, and PT Indra Karya will be under the infrastructure HoldCo.
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