The state-owned construction firm, PT PP Tbk (IDX: PTPP) is targeting to obtain a new contract values of Rp30.1 trillion (US$2.15 billion) in this year - Photo by the Company

JAKARTA (TheInsiderStories) – The state-owned construction firm, PT PP Tbk (IDX: PTPP) is targeting to obtain a new contract values of Rp30.1 trillion (US$2.15 billion) in this year, said the management. The amount up 35 percent from the realization of new contracts throughout 2020 which amounted to Rp22. 26 trillion.

The company also increased this year’ capital expenditure allocation from Rp3.4 trillion in 2020 to Rp 6.2 trillion. The funds will be dominated for toll road project work. Then, property, residential development projects, regional, airport, and investment development of the subsidiaries.

So far, some of the new projects has obtained by PTPP included construction projects (26 percent), infrastructure projects (27 percent), Engineering-Procurement-Construction projects (EPC) (32 percent), and from the units (15 percent). In 2020, the issuer has developed 28 building projects, 35 infrastructure projects, 13 EPC projects and subsidiary projects.

Based on company data, until the third week of November 2020, the builder  has received a new contract from the Refinery Development Master Plan construction project with total costs Rp1.80 trillion, Pekanbaru – Kampar Drinking Water Supply System of Rp 1.26 trillion, Bogor Heritage Apartment project Rp1.17 trillion, Mandalika Circuit Rp 817 billion, Banten Sport Center Rp794 billion), and Smelter Grade Alumina Refinery Rp 660 billion, and Kendari – Toronipa road project Rp412 billion.

In the first month of 2020, the parent company of PT PP Properti Tbk (IDX: PPRO) posted revenues of Rp10.02 trillion or down 37.02 percent in annual basis (YoY) from Rp15.91 trillion in 2020. The net profit also dropped 94.42 percent from Tp519.24 billion to only Rp26.37 billion.

Last year, the state-owned investment firm has announced to seek fresh funding from the divestment of its assets around Rp1.6 trillion. The proceeds from the share sale will be used to assist the company’ liquidity. According to the CEO, Novel Arsyad, there are four projects that will be divested.

One project has been divested and the second project will be completed in early September 2020. While the other projects its targeting next year. PTPP has divested 14 percent’ ownership in the Cisumdawu toll road project, in West Java. Then, Medan Kualanamu – Tebing Tinggi toll road project (15 percent), Kuala Tanjung Multipurpose Port project (25 percent), and Pandaan Malang toll road project, in which the company’ share ownership is 35 percent.

Now, 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: Rp14,000

Written by Editorial Staff, Email: theinsiderstories@gmail.com