State-owned contractors: The jump in Construction SOEs' 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.
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13 September 2023
Jakarta - Even though they were selective in participating in project tenders, the new contract value of state-owned enterprise (SOE) issuers grew until August 2023.
Farid Budiyanto, PT Adhi Karya (Persero) Tbk (ADHI) Corporate Secretary, said that the company obtained new contracts worth Rp24.5 trillion in the first 8 months of 2023.
“The new contract realisation grew 150% compared to last year by Rp16.3 trillion,” he said in his official statement on Tuesday (12/9).
The realisation is 90.7% of ADHI’s new contract target this year that reaches Rp27 trillion.
According to Farid, 94% of ADHI’s new contract realisation until August 2023 was dominated by the engineering and construction business line, 3% by the property business line, and the rest by other business lines.
“The increase in the new contract realisation will support the company’s performance to continue growing, and it is expected to positively contribute to the revenue target in 2023.”
A significant new contract value growth has also been achieved by PT PP (Persero) Tbk (PTPP). PTPP Corporate Secretary Bakhtiyar Efendi revealed that the company has obtained new contracts worth Rp22.5 trillion until August 2023.
“So, it is an extraordinary growth compared to last year. [The increase is] around 40% year-on-year,” he said recently.
Bakhtiyar stated that PTPP was continuously focusing on the construction business to achieve a new contract value of Rp34.5 trillion at the end of 2023.
Meanwhile, PT Wijaya Karya (Persero) Tbk (WIKA) has logged new contracts worth Rp15.41 trillion until July 2023.
WIKA Corporate Secretary Mahendra Vijaya said that the large number of new contracts would also increase the company’s order book to Rp61.39 trillion.
The largest contributor to WIKA’s new contracts is the infrastructure and building segment, which is followed by the EPCC segment and the realty and property segment.
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