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Bisnis Indonesia - PTPP pasang target penjualan tahun ini konservatif
22 March 2024
Jakarta, ID – PT PP Tbk (PTPP) has set a conservative sales target of Rp21 trillion this year, representing a modest increase compared to the previous year's sales realisation of Rp20 trillion. This cautious approach is due to the significant financial strain PTPP faces from its investments in subsidiaries, particularly those in the property sector.
PTPP Corporate Secretary Bakhtiyar Efendi stated that the company's investments in subsidiaries, particularly in PP Properti, have encountered significant business challenges, resulting in a Rp127 billion decline in consolidated profit in 2023.
Therefore, the company has halted investment activities in the property sector to recover PTPP's financial wellbeing. Consequently, the company is divesting the assets of its subsidiaries to bolster its financial recovery given the significant liabilities and high-interest leverage.
"Therefore, we are aligning our divestment strategy to enhance the company's health and facilitate smoother business operations. The divestment target for this year is Rp3 trillion, encompassing the energy, toll road, and property sectors. Additionally, we will divest subsidiary assets to secure immediate funds and decrease the still-high leverage," he said.
"Otherwise, the financial burden will persist, impacting not only consolidated profit but also PTPP's sales. Consequently, the company's sales in fiscal year 2023 fell short of Rp20 trillion, failing to meet the set target," he said.
"In 2024, we plan to further improve. Therefore, we are refinancing and streamlining [PP Properti]. Yesterday, we performed well in the construction business, which increased by Rp481 billion or 70% year on year. However, investments in subsidiaries faced some obstacles. This led to a slight decrease in our consolidated profit in fiscal year 2023," Efendi explained in Jakarta on Thursday (21/3/2024).
To tackle these challenges, Efendi elaborated that PTPP has devised a strategy known as excellence construction. This approach stems from the recognition that the construction industry is maturing, prompting the company to aspire to reach a higher echelon as a construction firm, capable of excelling in the Southeast Asian market.
