PP and five SOEs establish JV for Rp340 billion
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 - PP dan Lima BUMN Dirikan JV Rp340 Miliar
7 February 2023
By Muawwan Daelami and Amrozi Amenan
Jakarta, ID – PT PP Tbk (PTPP) is establishing a joint venture (JV) with five other state-owned enterprises (SOEs), namely PT Hutama Karya, PT Wijaya Karya Tbk (WIKA), PT Adhi Karya Tbk (ADHI), PT Brantas Abipraya, and PT Nindya Karya. The joint venture that is named PT Karya Logistik Nusantara (KLN) has an authorised capital of Rp340 billion.
Meanwhile, the capital that has been placed and paid reaches Rp85 billion. Regarding the stock ownership portion, PTPP, WIKA, ADHI, and Hutama Karya each own 15% or Rp15 billion worth of stocks. Meanwhile, PT Brantas Abipraya and PT Nindya Karya each own 12.5% or Rp12.5 billion worth of stocks in KLN. This joint venture was established in accordance with Deed of Establishment Number 12 made in front of Notary Rosida Rajagukguk-Siregar in Jakarta.
“In accordance with Article 3 of KLN’s Deed of Establishment, the goal and purpose of the JV are to engage in precast concrete, construction material trade, warehousing, and port sectors,” PTPP Corporate Secretary Bakhtiyar Efendi said in an information disclosure on Monday (6/2/2023).
He added that the share participation in PT Karya Logistik Nusantara was logged in PTPP’s book as a participation in an associated company. The establishment of this joint venture is said to sustain PTPP’s business activities. The company will receive recurring income from the participation to strengthen the company’s finances.
“Regarding the establishment of the joint venture, there is no legal impact nor impact to the company’s business sustainability,” Bakhtiyar affirmed.
On the other hand, in the business side, Efendi admitted that PTPP would be positively impacted from the investment in KLN. “The establishment of this joint venture also sustains the company’s business activities as the company will receive recurring income from the establishment of the JV,” Efendi revealed.
