PTPP obtained Rp23.6 trillion new contracts
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 - PTPP raih kontrak baru Rp23,6 T
23 October 2023
By: Muawwan Daelami
Jakarta - PT PP (PTPP) has logged new contracts worth Rp23.6 trillion until the end of the third quarter of 2023. Out of the amount, Rp4.15 trillion are Nusantara Capital City (IKN) projects. The realisation of IKN contracts can still increase as there are still many projects that will be tendered.
“New contracts until the third quarter of 2023 have reached Rp23.6 trillion. There are probably several new contracts [that have not been included] last weekend,” PTPP Corporate Secretary Bakhtiyar Efendi said to Investor Daily on Sunday (22/10/2023).
Referring to the data in the electronic procurement service system (LPSE) of the Public Works and Housing (PUPR) Ministry, the construction state-owned enterprise (SOE) won their last IKN project tender in April 2023. At the time, the issuer with the ticker code PTPP obtained a road construction project in the central government core area (KIPP) to construct road access to the mosque in IKN and the logistics pier worth Rp397 billion out of the total value of Rp690 billion.
The project is one of the eight IKN projects secured by PTPP. The other projects are KIPP preparation project phases 1 and 2, west Sumbu Kebangsaan road, IKN toll road segment 3B (Kariangau-Sp. Tempadung), the presidential palace and the ceremony field, the presidential office building, and the State Secretariat Ministry building.
Re-tender
Meanwhile, there are currently two IKN projects worth Rp575 billion that will be re-tendered. The two projects are the construction of wastewater pipeline network 2 in KIPP worth Rp473 billion and the residue dredging unit in KIPP worth Rp102 billion.
As many as 74 participants are ready to participate in the re-tender process of the two projects. However, we do not know who the participants are.
There is also another project outside IKN that is of high value, which is Universitas Syekh Nawawi Al-Bantani worth Rp200 billion. The project is currently in the post-qualification stage. The determination of the winner will be announced on 15 November.
There are 33 participants participating in the tender process of the project located in Banten. Unfortunately, similar to the two previous IKN projects, the participants cannot be disclosed.
However, seeing the core business of PTPP in the building sector, the company is potentially interested in the project. The company has won a similar contract to construct Universitas Haluoleo in Kendari worth Rp240 billion.
Moreover, looking at the PTPP’s project realisation composition until the first half of 2023, most or 34.8% of their contracts are from the building business line. Meanwhile, 24.6% are from the roads and bridges business line, 11.7% are from the railway business line, 9.7% are from the dam business line, 8.5% are from the port business line, 7.4% are from the industrial business line, and 1.1% are from the oil and gas business line.
Besides IKN projects, PTPP announced that they have also won new contracts from various non-IKN projects, which include North-South Commuter Railway in the Philippines worth Rp1.36 trillion, Cibeet Dam worth Rp937 billion, East Port Lamongan phases 1A and 1B worth Rp767 billion, Bayung Lencir-Tempino toll road package 2 worth Rp683 billion, BSI Antara building worth Rp607 billion, PIK Bridge duplication worth Rp205 billion, and Amanah Hospital in Banjarmasin worth Rp201 billion.
Indian investors eye IKN
Meanwhile, Indonesian Ambassador to India and Bhutan Ina Haginingtyas Krisnamurthi recently brought investors from India to visit IKN to explore investment opportunities.
The investors consist of several companies with jumbo assets and an international reputation. The companies engage in various sectors, including healthcare, infrastructure, port, and mineral resources that include mineral salts that are used for paper and floor tiles.
“The investors show strong interest to contribute to Nusantara development,” Ina revealed in her official statement.
Ina explained that the reason why she brought the Indian investors to IKN was to accelerate IKN development and introduce new investors to IKN Authority.
“The embassy and I tightly curated the investors before bringing them to IKN. We know and understand the needs, so we implemented our priority scale to choose investors that are bona fide and especially interested,” she stated.
IKN Authority Investment and Ease of Doing Business Director Indra Yuwana said that the investors were top companies that have companies in Indonesia in various sectors that focus on green energy and solar panels.
On the other hand, PT Adani Global Chief Financial Officer Siddarth complimented the concept and the detailed plan of IKN that covers all aspects from green energy, technology, security, lifestyle, and education.
Besides Siddarth, there are also Apollo Hospital representative Gaurav, GMR Indonesia President Director Satya, PT Adani Global Manager Ajith Rai, PT Inti Bumi Sukses Director Sanjay Lakhiani, and PT Rabani Corporindo representative Matthew Dixon.
