New contracts: Construction SOEs battle out strategies
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.
Bisnis Indonesia - Kontrak baru: BUMN Karya beradu siasat
26 October 2021
By: Dwi Nicken Tari
Bisnis, Jakarta – The last three months of 2021 will determine whether SOEs (State-owned Enterprises) in the construction sector will achieve their new contract target. Companies are devising strategies to secure new contracts amid the resurgence of infrastructure, property, and engineering procurement construction (EPC) projects.
Contractor issuer PT Wijaya Karya (Persero) Tbk has secured new contracts worth Rp13.16 trillion per September 2021.
Wijaya Karya Corporate Secretary, Mahendra Vijaya, said that their new contract realisation until the end of the third quarter of 2021 increased by 92.4% compared to last year.
“In the second half of 2021, the company is still participating in several tenders to secure [projects worth] Rp25 trillion, which is 2 to 2.5 times higher than [the new contract realisation in] the first half of 2021,” Mahendra said to Bisnis on Monday (25/10).
The issuer with the ticker code WIKA is targeting to secure new contracts from dam projects, power plants, toll roads, as well as foreign projects in one of the ASEAN countries.
Mahendra said that, if the condition becomes more conducive in the future, the tenders can be released and received immediately in the fourth quarter of 2021. Hence, the company is optimistic about achieving the new contract target that has been revised to Rp35 trillion before the end of the year.
In another development, PT PP (Persero) Tbk has secured new contracts worth Rp13.48 trillion in 9 months in 2021. According to PT PP Corporate Secretary, Yuyus Juarsa, the new contract realisation of the issuer with the ticker code PTPP increased by 14.62% yearly from Rp11.76 trillion per September 2020.
“To maximise new contract realisation this year, PTPP will focus on strategic projects of the government and SOEs,” Yuyus wrote in his official statement on Monday (25/10).
Until the end of the third quarter of 2021, several projects secured by PTPP included the constructions of Junction Dawuan toll road worth Rp825 billion, Pegadaian Tower worth Rp594 billion, Benoa Dredging worth Rp583 billion, and Indonesia Attorney General office worth Rp500 billion.
Yuyus said that the company would still implement the short-term strategy, which was to maintain the company’s capability in infrastructure, building, roads and bridges, water infrastructure, as well as port and airport sectors.
Besides that, PTPP will also strengthen the EPC sector and continue to expand the new renewable energy (NRE) sector.
Previously, PT Adhi Karya (Persero) Tbk was optimistic about achieving the new contract value target of Rp25 trillion at the end of this year. Adhi Karya Corporate Secretary, Farid Budiyanto, said that the company was currently participating in several tenders to realise the new contract target.
“Adhi is currently participating in tenders of several railway, infrastructure, and building projects, as well as other projects,” Farid wrote in his official statement on Thursday (14/10).
Moreover, the issuer with the ticker code ADHI is targeting their new contracts to increase by around 20% to 25% this year or by up to Rp25 trillion.
Until the end of September 2021, ADHI has secured new contracts worth Rp11.3 trillion, which is 82.3% higher than their realisation last year that reached Rp6.2 trillion.
On a separate occasion, PT Waskita Karya (Persero) Tbk President Director, Destiawan Soewardjono, said that the company’s new contract value per August 2021 had reached Rp10.8 trillion or 52.68% of their Rp20.5 trillion target.
The company is still targeting 16 projects that are still being tendered, which are EPC and infrastructure projects from ministries and institutions.
Next Article : PP secured new contracts worth Rp13.48 trillion
