PP (PTPP) Targets New Contracts Worth IDR 32 Trillion in 2024

March 19, 2024, 01.23 PM | Reporter: Vina Elvira

ILUSTRASI. PP (PTPP) targets new contracts this year to reach Rp 32 trillion.

ISSUER NEWS - JAKARTA. State-owned construction company PT PP (Persero) Tbk (PTPP) is targeting a new contract value of IDR 32 trillion in 2024. PTPP management targets 40% of the new contract value will be supported by state-owned enterprise projects.

PTPP Corporate Secretary Bakhtiyar Efendi said, the target contract value of IDR 32 trillion in 2024 is supported by 40% from state-owned enterprise projects, 38% from government projects, and the remaining 22% comes from private projects.

“Where the project lines include 53% Infrastructure projects, 34% Building projects, and 13% EPC projects,” said Bakhtiyar to Kontan.co.id, last Friday (15/3).

PTPP recorded, until now it has obtained new contracts worth IDR 4.2 trillion. With details, 62% comes from Infrastructure projects, 29% Building projects, 4% EPC projects, and the remaining 5% from subsidiaries.

For illustration, PTPP booked a new contract acquisition of IDR 31.67 trillion until December 2023. The new contract acquisition increased by 1.54% compared to the same period in 2022 which was worth IDR 31.19 trillion.

The new contract is dominated by projects with government funding sources of 42.79%, private sector 37.20%, and state-owned enterprises 20.01%.

As a growth strategy this year, PTPP will focus more on strengthening the company's core business in the construction sector, especially in the infrastructure and building segments, and be more selective and prudent in investment aspects.

“In addition, PTPP will accelerate divestment and optimize cash flow while still prioritizing innovation, lean construction, strengthening risk management and corporate governance,” he added.

With the target of new contract acquisition this year, PTPP expects revenue in 2024 to grow around 10%-15% compared to the previous year. The positive catalysts for PTPP come from state-owned enterprise projects and Indonesian government projects that are still committed to continuing infrastructure development, both in the transportation, energy, and utility sectors.