Hutama Karya booked new contracts worth Rp12.4tn
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Hutama Karya bukukan kontrak baru Rp12,4 T
1 August 2024
In the first half of 2024, PT Hutama Karya (Persero) secured new contracts totaling Rp12.4 trillion. The majority of these contracts, 69.54%, came from the roads and bridges sector, while the water infrastructure sector contributed 16.24%.
Hutama Karya President Director Budi Harto stated that in the first half of 2024, state-owned enterprise (SOE) projects made up 71.53% of the company's new contract realisation, while government projects accounted for 21.09% and private projects contributed 7.38%. He also expressed optimism about achieving the company's new contract target for the remainder of 2024.
“In the second half of 2024, the company is also focused on completing several national strategic projects (PSNs) and projects in IKN. These include Meninting Dam, section 3 of the Bayung Lencir-Tempino toll road, the Karangjoang-KKT Kariangau toll segment (Section 3A), Civil Servant Flat 2, Coordinating Ministry Building 2, the VVIP airport, and the IKN hospital,” Budi said in his press statement on Wednesday (31/7/2024).
He mentioned that, in terms of infrastructure projects, the performance of the general construction and building sectors was satisfactory. This is especially true for public-private partnership (PPP) projects, such as stage 3 of the Proving Ground in Bekasi, the design and construction of Anggrek Port in Gorontalo, the Integrated Shrimp Farming Project in East Nusa Tenggara (NTT), the Jampidsus round building in Jakarta, package 2 of the BRI Building project in Ragunan, and the construction of the Bank Indonesia Building in Karawang.
This year, Hutama Karya aims to construct 47 kilometres of the Trans-Sumatra Toll Road (JTTS) in phase 1 and 42.6 kilometres in phase 2. By the first half of 2024, the company has already extended the Stabat-Tanjungpura toll road, the Limapuluh-Kisaran section of the Indrapura-Kisaran toll road, and the Bangkiang-XIII Koto Kampar toll road.
“In the second half of 2024, Hutama Karya is targeting to complete several segments of the JTTS in phase 1 and some of phase 2,” he added.
Phase 1 includes several key segments, including the Kuala Tanjung-Pematang Siantar toll road (Sections 2-4) spanning 75 km by PT Hutama Marga Waskita, the Binjai-Pangkalan Brandan toll road (Section 3) covering 20 km, the Sigli-Banda Aceh toll road (Section 1) extending 25 km, and the Padang-Sicincin toll road spanning 37 km. Meanwhile, phase 2 includes the Bayung Lencir-Tempino toll road (Section 3) covering 34 km.
In the toll road management business, Hutama Karya reported a significant increase in traffic on their managed segments. In the first half of 2024, traffic growth reached 11% compared to the previous year.
“In addition to the increase in operating toll segments, traffic also grew due to the homecoming period and long weekends. Hutama Karya forecasts that traffic growth will reach 16% for the remainder of 2024, which will ultimately boost toll road revenue,” Budi added.
In the first half of 2024, SOEs in the construction sector secured a total net profit of Rp396 billion with a revenue of Rp12.4 trillion. This represents a tenfold increase in net profit compared to the first half of 2023, which saw net profits of Rp33.73 billion.
