Construction SOE issuers compete for contract portion in National Strategic Projects
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 - Adu tebal kontrak emiten BUMN karya di proyek strategis nasional
12 October 2023
By: Muawwan Daelami
Jakarta - Several construction state-owned enterprises (SOEs), namely PT PP Tbk (PTPP), PT Adhi Karya Tbk (ADHI), PT Waskita Karya Tbk (WSKT), and PT Wijaya Karya Tbk (WIKA), have collected national strategic projects (PSNs) worth Rp207.8 trillion. PTPP is the supreme PSN collector as their portion reaches 47.74% of the total contracts obtained by construction SOEs.
Based on the newest data collected by Investor Daily, PTPP holds the largest PSN contract portion with a total value of Rp99.2 trillion. Following behind, Adhi has a total contract value of Rp64.9 trillion, Waskita Rp22.4 trillion, and Wijaya Karya or Wika Rp21.3 trillion. The contracts come from PSNs that are included in the National Medium-term Development Plans (RPJMNs) for 2015-2019 and 2020-2024. “The completed ones reach Rp13.6 trillion. Ongoing projects reach Rp85.6 trillion,” PTPP Corporate Secretary Bakhtiyar Efendi said to Investor Daily recently.
Efendi mentioned that ongoing PSNs included Cirebon-Semarang Natural Gas Transmission Pipeline Phase 1 (Semarang-Batang Segment) worth Rp 1.06 trillion that is set to be completed in November 2023. “For now, PTPP currently has not won and is not targeting to win more PSNs,” he stated.
Regarding ADHI, Adhi Karya Corporate Secretary Farid Budiyanto explained that their PSN construction contracts that reach Rp64.9 trillion were obtained from 2016 to August 2023.
Based on the type of work, Farid explained that the PSNs worked on by the company consisted of road and bridge projects by 50%, railway facility projects by 39%, and water resources projects by 5%. “Several PSNs that have been completed by ADHI include Jabodebek LRT, Cisumdawu toll road, and Sigli-Banda Aceh toll segment,” Farid revealed to Investor Daily.
Toll road projects
Waskita has currently obtained 19 PSNs with a total contract value of Rp22.3 trillion. The contracts include several types of projects, such as dam, irrigation, bridge, toll road, and drinking water provision system (SPAM) projects.
In the dam sector, Waskita is working on Bener Dam Package 2 and Jlantah Dam that are worth Rp570 billion each, Jragung Dam Package 1 worth Rp806 billion, Rukoh Dam Package 2 worth Rp595 billion, Rukoh Dam Irrigation Tunnel worth Rp456 billion, Temef Dam Package 4 worth Rp274 billion, and Rentang Irrigation Modernisation worth Rp553 billion.
Regarding Bener Dam Package 2, Waskita Corporate Secretary SVP Ermy Puspa Yunita explained that the progress of the dam located in Purworejo Regency in Central Java has reached 40.52% as of October 2023.
On top of working on dam and irrigation projects, the issuer with the ticker code WSKT is also working on bridge and toll road projects. In the bridge sector, the company is working on Musi Bridge on KAPB toll road section 2 worth Rp932 billion with progress reaching 69.09% on 8 October 2023.
Meanwhile, regarding toll roads, Waskita has Ciawi-Sukabumi toll road section 2 (Cigombong-Cibadak) spanning 11.9 km worth Rp2 trillion with progress reaching 97,933% as of 8 October 2023. The company is also working on the Telaga Asih-Muara Bakti segment of Cibitung-Cilincing toll road section 2 spanning 10.3 km worth Rp2.27 trillion with progress reaching 99,409% as of 8 October 2023.
Other freeways worked on by Waskita include Pasuruan-Probolinggo toll road section 4 spanning 8.6 km worth Rp1.17 trillion with progress reaching 98.95% and Jakarta-Cikampek II South toll road package 3 spanning 27.85 km worth Rp4.59 trillion with progress reaching 88.50% as of 8 October 2023.
According to Ermy, Jakarta-Cikampek II South toll road package 3 will increase economic growth and regional development that includes industrial estates, housing, and tourism destinations. Waskita has also been entrusted to work on Cimanggis-Cibitung toll road section 2 spanning 19.80 km with a contract value of Rp3.82 trillion. Then, they have also been entrusted to work on Kapal Betung (KAPB) toll road package 2 section 2 PMN worth Rp1 trillion that is a part of Trans-Sumatra toll road (JTTS).
Moreover, they are also working on KAPB toll road package 4 section 2A PMN worth Rp1.11 trillion with progress reaching 66.28% as of 8 October 2023. Last but not least, from the toll road business line, the company is also working KAPB toll road package 2 section 3 PMN and package 4 section 3B that have a total value of Rp1.5 trillion. Besides that, the company is also working on Umbulan Regional SPAM in East Java and Inalum’s smelter upgrade worth Rp59 billion.
High-speed railway
The last construction SOE that has obtained contracts worth Rp21.3 trillion is Wika. Wijaya Karya Corporate Secretary Mahendra Vijaya said that the contracts came from toll road, high-speed railway, dam, coal-fired power plant (PLTU), and factory projects.
In detail, regarding toll roads, WIKA is working on Pekanbaru-Padang toll road worth Rp3.47 with progress reaching 77.86% as of June 2023. The PSNs that have operated include Jakarta-Bandung High-speed Railway (KCJB) worth Rp14.50 trillion, Tiga Dihaji Dam worth Rp596 billion, the PLTU project in Palu worth Rp2 trillion, and a factory project worth Rp681 billion.
