JAKARTA (TheInsiderStories) – Indonesia’ heavy equipment distributor, PT United Tractors Tbk (IDX: UNTR) give fresh loans Rp2.4 trillion (US$169.01 million) to its unit PT Acset Indonusa Tbk (IDX: ACST). So far the company has lend Rp4 trillion to its unit, the management said on Monday (09/09).
The two companies had signed a change to the shareholder loan agreement on August 19. It said, the construction company will use the additional funds for working capital will be used to finance the construction and infrastructure projects.
Since the transaction exceeds 50 percent of Acset Indonusa’ equity the company needs to raise approval from its shareholders. Acset Indonusa will conduct an extraordinary shareholders meeting Sept. 27.
Currently, the company eyes a number of toll road projects, including the Jakarta – South Cikampek and Serpong – Balaraja sections, which are currently still in the tender process. In addition, the company also entered into a consortium for the construction of the 36.50 kilometers Cikunir – Ulujami toll road around the Greater Jakarta. The investment cost of the projects is estimated worth of Rp22.5 trillion.
During first half (1H) of 2019, Acset Indonusa booked new contracts worth of Rp1.4 trillion. This year, the company is optimistic to grab a new contract value of Rp15 trillion with focusing on infrastructure projects.
The company’ posted a revenues Rp1.55 trillion, down 7 percent compared to 1H 208 worth of Rp1.65 trillion. Consequently, ACST recorded a net loss of Rp404.43 billion in 1H 2019. That position reversed from a profit of Rp73.44 billion in the 1H of 2018.
This year, UNTR, an Astra International Group subsidiary, prepared $800 million in capital expenditure to develop its business lines, including the purchase of new heavy equipment owned by its unit PT Pamapersada Nusantara (PAMA).
The company targets to buy 4,000 units of heavy equipment. The remaining, will manage other lines of business in the field of construction and energy, said the spokeswoman Sarah Loebis.
Part of the capex delivered by its holding PT Astra International Tbk (IDX: ASII). This year, the conglomeration company prepared funds around Rp27 trillion to develop its various businesses.
Beside finance the unit’ projects, part of the funds it will spend on the digital business, said the president director Prijono Sugiharto last month. Astra has entered the digital business by investing in the ride-hailing provider GOJEK. The publicly listed has invested amounting to $250 million at the unicorn.
Talking on its core business, Sugiharto expects by the end of this year the company market shares in car sales could stay at 50 percent from now 53 percent of total national sales. The tight competition among the car manufacturer become the reason for the declining of the company market shares, he adds.
He sees the national car sales around 1.05 million units or dropped 10 percent compared to last year and for export market 200,000 units. Then the motorcycle sales are estimating the same with last year around 6.3 million units and heavy equipment sales will be dropped 20 percent to 3,600 units compared to last year
But he believed that the Indonesian market still prospective for four and two-wheels vehicle. He stated, “Car sales are still prospective and will prepare investment for it.”
In other sectors, Sugiharto said, the manufacturer will continue looking infrastructure projects and other potential business. In toll project, he claimed, Astra would manage 1,200 kilometers of toll road across the nation manage by PT Astra Infra.
Two toll road projects, Kunciran – Serpong toll road in Jakarta area and Surabaya – Moncokerto in East Java will operate. While PT United Tractors Tbk’ (IDX: UNTR) power plant project joined with Japan’ Sumitomo Corp. and Kansai Electric Power Co. Inc. with total capacity 1,200 megawatts will operate soon.
Sugiharto believed the new businesses will support its financial performance in the future. in the first half of 2019, the company profit dropped six percent to Rp10.38 trillion from prior year amid the lower commodity price, coal, heavy equipment, and car sales.
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