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 - PT PP raup kontrak baru Rp31,67 T
Jakarta, ID – PT PP Tbk (PTPP) recorded new contract acquisitions totalling Rp31.67 trillion in 2023, an increase of 1.54% from the same period in the previous year at Rp31.19 trillion. Projects with funding sources from the government (42.79%), private sector (37.20%), and state-owned enterprises (SOE) (20.01%) dominate the majority of the new contracts.
"The increase in PTPP contract values indicates that the company continues to be trusted by various parties in delivering both national and international projects as well as being consistent in strengthening the construction core business," said Bakhtiyar Efendi, PTPP Corporate Secretary in his official statement last week.
Bakhtiyar explained that the sector with the highest acquisition of new contracts was Roads & Bridges at 34.64%, followed by Buildings 31.71%, Railways 11.22%, Airports 7.21%, Ports 4.81%, Dams 4.44%, Industry 3.44%, Irrigation 1.25%, Power Plant 0.65%, and Oil & Gas 0.63%.
The new projects achieved by PTPP in December 2023, continued Bakhtiyar, included the Biak Fuel Terminal (Seaside) worth Rp393 billion, Block A-B Shiplift Pier worth Rp275 billion, and the construction of the Jakarta PON Hospital worth Rp258 billion. “PTPP strongly commits to contributing to infrastructure development, particularly the National Strategic Project (PSN) that the government is currently promoting,” he confirmed.
Bakhtiyar stated that PTPP has so far worked on 30 National Strategic Projects (PSN), 12 of which have been completed. The Toll Road sector accounts for 56.25% of the National Strategic Project (PSN), Dams 18.02%, EPC 14.02%, Ports and Piers 9.15%, Airports 1.82%, and the Industrial sector accounts for 0.75%.
Bakhtiyar said that the majority of PTPP projects were completed on time and at a faster pace than anticipated. "We remain committed to completing the projects on time, and we will continue to monitor our projects in order to support the government's strategic programs. Based on the various experience portfolios of previous projects, PTPP is optimistic that it will continue to improve its performance and competence so that the projects currently in progress have the quality that meets predetermined standards," he said.
Solid cash flow
Agus Purbianto, PTPP Director of Finance and Risk Management, previously stated that they were confident enough to pay off the company's debts totalling Rp44.22 trillion and that there was no need to postpone payment of obligations (standstill) to creditors, as happened with other fellow SOEs, namely PT Wijaya Karya Tbk (WIKA) and PT Waskita Karya Tbk (WSKT).
Next article: Obstacles hindering freeway projects
