PT Hutama Karya, received a capital injection worth of Rp7.5 trillion (US$531.91 million) from President Joko Widodo - Photo by the Company

JAKARTA (TheInsiderStories) – The state-owned construction firm, PT Hutama Karya, received a capital injection worth of Rp7.5 trillion (US$531.91 million) from President Joko Widodo. This is stated in the Government Regulation Number 71 of 2020 concerning the capital participation that has been signed on Dec. 11.

The injection was given to improve capital and increase company capacity in order to support the national economic recovery program and continue the implementation of the assignment to accelerate the construction of the Trans Sumatra Toll Road.

Hutama Karya need fresh funds to complete the construction of Trans Sumatra toll road phase I until 2023 and needs additional equity around Rp80 trillion. According to the CEO, Budi Harto, until 2029, the fresh funding is expected disburses by the government in stages until 2023. In details, Rp15 trillion in 2021, Rp30 trillion in 2022, and Rp35 trillion in 2023.

He adds, the company will experiences negative cash flow caused of the high interest expenses of the project financing. The numbers, he continued, with the assumption, the builder obtain a revolving funds from from the Toll Road Regulatory Agency worth of Rp20 trillion in stages.

Harto said, Hutama Karya will posts a net losses until 2029 and start to book a profit of Rp849 billion in 2030.  Next year, the operating cash flow is estimated to be minus Rp1.95 trillion with a cash flow of Rp19.25 trillion. While, the operating income in to reach Rp1.47 trillion.

The toll road agency has ordered the state-owned consortium to build toll road projects in North Sumatera, with total costs Rp13.4 trillion. The consortium are, Hutama Karya, PT Jasa Marga Tbk (IDX: JSMR), and PT Waskita Toll Road has formed PT Hutama Marga Waskita to run the projects.

The 143.5 kilometers (km) toll road project is a continuation of the 61.72 km Medan – Kualanamu – Tebing Tinggi toll road. Previously the Medan – Kualanamu – Tebing Tinggi had been completed and connected to the Belawan – Medan – Tanjung Morawa toll road to increase the connectivity of tourist destinations, including access from Medan to the Lake Toba.

The toll road will consist of six sections, namely section one Tebing Tinggi – Inderapura (20.4 km), section two Inderapura – Kuala Tanjung (15.6 km), section three Tebing Tinggi – Serbelawan (30 km). Then, section four Pemelawan – Pematang Siantar (28 km), section five Pematang Siantar – Seribudolok (22.3 km), and section six Seribudolok – Parapat (16.7 km).

During this time, the main access to get to Lake Toba and Samosir Island from the direction of Medan is via Parapat and crossing by ferry. The toll road is also expected to spur economic growth in North Sumatra including the economic sector of the Port of Kuala Tanjung and tourism destination of Lake Toba which can be reached quickly.

US$1: Rp14.100

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