PP secured new contracts worth Rp13.48 trillion
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 raup kontrak baru Rp13.48 triliun
26 October 2021
By: Parluhutan Situmorang
Jakarta – PT PP Tbk (PTPP), a leading construction and investment company in Indonesia, has secured new contracts worth Rp13.48 trillion until the end of September 2021. That realisation grew 14.62% from last year’s realisation of Rp11.76 trillion.
This year, PP is targeting to increase their new contract value to Rp30.1 trillion from Rp22.26 trillion in 2020.
PP Corporate Secretary, Yuyus Juarsa, said that several projects that were won by the company until September 2021 included Junction Dawuan toll road project worth Rp825 billion, Pegadaian Tower construction worth Rp594 billion, Benoa Dredging worth Rp583 billion, Indonesia Attorney General office worth Rp500 billion, Papua Governor office worth Rp357 billion, Labuan Bajo Airport worth Rp357 billion, Batang KIT (Integrated Industrial Estate) roads phase 1.4 worth Rp350 billion.
The company has also won the tenders of Pura Besakih Area organisation worth Rp344 billion, Mandalika Infrastructure phase 2 worth Rp342 billion, Alor Regency infrastructure worth Rp271 billion, Banten Hospital construction worth Rp241 billion, Ismail Marzuki Park phase 3 worth Rp226 billion, Bintang Bano Irrigation worth Rp212 billion, Manado-Bintung toll road extension worth Rp208 billion, and other projects.
He said that new contracts from SOEs (State-owned Enterprises) dominated PP’s new contract realisation by 59% until September 2021. Meanwhile, 32% of the new contracts came from government projects and 9% came from other projects. Meanwhile, based on the type of activity, 47.99% of the new contracts are road and bridge projects, 35.91% are building projects, 6.09% are irrigation projects, 5.20% are port projects, 2.01% are industrial projects, 1.48% are airport projects, 0.74% are power plant projects, and 0.58% are oil and gas projects.
“Until the end of September 2021, PP has successfully secured new contracts worth Rp13.48 trillion. The new contract realisation increased by 14.62% year on year from Rp11.76 trillion last year,” he revealed in a written statement on Monday (25/10).
To maximise the new contract realisation this year, Yuyus said that PP would focus on targeting strategic projects from the government and SOEs. PP will also implement the strategy that has been created to sustain their new contract and financial performance growth.
The company will still implement the strategy that has been created where PP will still maintain the company’s capability in infrastructure, building, road and bridge, as well as water infrastructure, port, and airport sectors. The same goes for the EPC sector, the company will also continue to expand in the new renewable energy (NRE) sector.
Previously, their subsidiary PT PP Presisi Tbk (PPRE) reported a new contract realisation of Rp4.7 trillion until September 2021. That realisation has surpassed the target or is equal to 130% of the target. This realisation also shows an increase of 241% from last year’s realisation of Rp1.9 trillion.
Equipment and SCM Director, Muhammad Wira Zukhrial, said that, throughout September, the company successfully secured a new contract worth Rp1.2 trillion. The contract came from the hauling road construction in the coal mine of PT Marga Bara Jaya-Jambi (non-group).
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