JAKARTA. State-owned construction firm Brantas Abipraya expects to increase its total contracts by 25 percent this year, banking on the government’s infrastructure push.
The company is looking to jot down Rp 7.4 trillion (US$569.7 million) worth of total contracts this year, which would comprise Rp 3.6 trillion new ones and Rp 3.8 trillion carryovers from last year, an executive with the firm has said. That could boost Brantas Abipraya’s revenues by 56.5 percent to Rp 3.6 trillion this year from Rp 2.3 trillion last year.
Brantas Abipraya president director Bambang E. Marsono said the firm was optimistic with positive prospects in the construction sector, as government projects are expected to accelerate during the five-year tenure of President Joko “Jokowi” Widodo.
“The market for the infrastructure sector will keep expanding at least until 2019,” Bambang said.
President Jokowi is aiming for the country’s economy to grow 7 percent during his presidency, from 5 percent at present, and infrastructure projects are central to achieving that goal. He has also doubled capital expenditure in the nation’s state budget to Rp 290 trillion this year to boost basic infrastructure.
Brantas Abipraya might benefit from this as government projects made up at least 70 percent of its total contracts last year. “The rest belonged to private and state-owned companies,” Bambang added.
As of last year, the company booked total contracts worth Rp 5.9 trillion, which comprised Rp 2.3 trillion in new contracts and Rp 3.6 trillion in carryovers from 2013. The Jokowi administration is looking to build 49 dams in the next five years, an attractive program for Brantas Abipraya, which has a particular expertise in construction that type of structure.
The company is currently constructing Melati Dam and renovating the Ciliwung River canal in Jakarta, Bengawan Solo River canal in Central Java as well as Tukul Dam in East Java. It is also preparing to break ground on Kerto Dam in Aceh, which will be inaugurated by the President on March 9. “Other projects are still being tendered,” Bambang said.
Besides basic infrastructure, Brantas Abipraya director Ekodjati Tunggulgeni said the company planned to enter the Engineering, Procurement and Construction (EPC) program, which would invite other partners from within the country and overseas. (Grace D. Amianti)
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