PT PP Tbk (IDX: PTPP) signed a contract to build two steam power plants in East Nusa Tenggara and North Sulawesi with total costs Rp8 trillion (U$567.38 million) - Photo by the company

JAKARTA (TheInsiderStories) – Indonesia’ construction firm, PT PP Tbk (IDX: PTPP) signed a contract to build two steam power plants in East Nusa Tenggara and North Sulawesi with total costs Rp8 trillion (U$567.38 million), said the company on Wednesday (09/11).

CEO of PTPP Hidayat explained, the capacity of each steam power plant is 2×50 megawatts (MW). The construction of 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 state-owned company is optimistic that it can complete the first projects in West Kupang in three years and in Bolaang Mongondow in 39 months. Its expecting the two steam power plant will be ready to operate in 2022 and to electrify several villages and sub-districts in the East Nusa Tenggara and North Sulawesi regions.

Recently, PTPP 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.

Abdul Haris Tatang, PTPP’ Operations Director in a written statement stated, that the company will be cooperate with Chinese’ ENFI consortium to construct the smelter project. The management said that the project to build the fero nickel smelter will require an investment of Rp4 trillion in the first phase.

The plant has a total capacity of 4×72 MVA and targeted to operate in 2021. Production is projected to reach 229,000 tons of ferro nickel annually at a rate of 22 percent – 24 percent.

In 2019, PTPP allocated Rp8.73 trillion capital expenditure, 28.76 percent higher than last year’ realization. The company also planned to sell part of its ownership in three toll road concessions, namely Pandaan – Malang toll road in East Java (35 percent), Kualanamu – Tebing Tinggi toll road (15 percent) and Kuala Tanjung Port (25 percent) in North Sumatera.

The developer expects to raise around Rp500 billion from share sales. Last week, the company issue local bond as much as Rp1.5 trillion local bond for its alternative funding in fulfilling company’ needs this year. The funds also use for business expansion.

Beside, this year, PTPP planned to set aside net income for reserves Rp1.2 trillion from last year has pocketed Rp16.31 trillion. In 2019, the constructor eyes new contract Rp50 trillion.

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: Rp14,100

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