PP accelerates infrastructure projects in Batang Integrated Industrial Estate
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 kebut proyek infrastruktur di KIT Batang
9 January 2023
Jakarta – PT Pembangunan Perumahan (Persero) Tbk (PTPP) has completed the construction of road package 1.1B and road package 1.4 in Batang Integrated Industrial Estate (KIT) in Central Java by 100% as of December 2022. Next, PP will accelerate several infrastructure projects in Batang KIT, such as the clean water installation.
PTPP Corporate Secretary Bakhtiyar Efendi revealed that, as the contractor of Batang KIT project, the company had successfully completed road package 1.1B and road package 1.4 by 100% as of December 2022.
Besides working on road projects, the state-owned construction issuer is also working on the integrated wastewater treatment installation and wastewater pipe network project with progress reaching 41.4% and PT KCC Glass Indonesia construction with progress reaching 50%.
“PP’s stock ownership in PT Kawasan Industri Terpadu Batang (Grand Batang City) currently reaches 1%, and we act as the contractor in the development of Batang KIT,” Bakhtiyar explained to Investor Daily last weekend.
Several projects in Batang KIT worked on by PTPP in phase I are basic infrastructure projects that include road projects and accesses to Trans-Java toll road, low-rise apartments, water drains, as well as gas line and distribution network.
This year, PTPP targets to complete other infrastructures in Batang KIT, such as telecommunications and electricity networks, water and waste management, gas transmission network, and a port.
The company is also planning to construct Batang KIT phase II that includes the development of a special area for MSMEs and an urban area, Sumilir business complex, and Grand Batang City Town Centre.
In the first nine months of 2022, PP logged profit that can be attributed to the parent company worth Rp141.02 billion, which increased by 8.96% from Rp129.41 billion last year. The financial performance growth is sustained by the company’s revenue that has increased by 20% to Rp13.45 trillion as of 30 September 2022 from Rp11.21 trillion last year.
This increase in income is followed by an increase in cost of revenue that reaches 18.92% to Rp11.64 trillion from the first to third quarters of 2022. In detail, Rp10.8 trillion of this state-owned issuer’s revenue comes from the construction service business line, Rp1.5 trillion from property and realty, and Rp799.52 billion from engineering, procurement, and construction (EPC).
“No sale from a buyer surpasses 10% of the revenue in 2022 and 2021,” PTPP’s management explained in the financial report released recently.
Meanwhile, PTPP’s revenue from related parties from January to September 2022 reached Rp4.3 trillion, which include PT Hutama Karya (Persero), PT Pelabuhan Indonesia (Persero), and PT Perusahaan Listrik Negara (Persero). The rest came from third parties, including PT Traslingkar Kita Jaya that contributed Rp1.29 trillion, PT Weda Bay Nickel Rp1.01 trillion, and BPJ-PT PP Semarang Demak Rp2.49 trillion.
