State-owned contractor: PTPP's new contracts soar
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 - Kontraktor BUMN: Kontrak baru PTPP melompat
6 September 2023
By: Dionisio Damara
Jakarta - The construction state-owned enterprise (SOE) issuer PT PP (Persero) Tbk (PTPP) has secured new contracts worth Rp22.5 trillion until the end of August.
PTPP Corporate Secretary Bakhtiyar Efendi said that the new contract realisation reflected a significant year-on-year (YoY) growth.
“PTPP’s new contract growth until August 2023 reached Rp22.5 trillion. So, it is an amazing growth compared to last year, by 40% YoY,” he said when he was met by Bisnis on Tuesday (5/9).
Bakhtiyar stated that PTPP was optimistic about its performance improving as they currently target to secure new contracts worth more than Rp34.5 trillion until the end of 2023.
To achieve the target, he explained that the company would focus on its main business, which is construction. Besides that, PTPP will also be more selective with their investment portfolio by implementing the blue ocean strategy.
“Where we are strong and where there is an opportunity, that is where we will focus on. However, if there is something that is weakening, we will reduce [our focus on] it as there are several businesses that have not recovered from the Covid-19 pandemic, including property,” he stated.
PTPP is currently working on several major projects, which include 10 projects in Nusantara Capital City (IKN) that are still progressing as planned.
On the other hand, PTPP is also working on Cibeet Dam, South Japek II Toll Road, Bayung Lencir-Tempino Toll Road Package 2, Soekarno-Hatta Airport Runway Overlay, and other projects.
The projects obtained by PTPP have passed the contract administration assessment process, so they are expected not to burden the company’s finances.
PTPP is also prioritising risk management by implementing smart and thorough controls, maximising its production and burn rate, and optimising its collection period.
In the first half of 2023, PTPP’s revenue decreased by 11% YoY to Rp8.04 trillion from Rp9.02 trillion. However, its net profit that can be attributed to the owner of the parent entity reached Rp96.41 billon, which increased by 10.87% YoY from Rp86.96 billion.
