Sunday, 20 June 2021 | 23:42 WIB

PTPP Secures New Contracts worth IDR33.5 Tln as of October 2017

Tumiyana, President Director of PTPP (special)

JAKARTA, NETRALNEWS.COM - State-owned construction company Pembangunan Perumahan (IDX:PTPP), also known as PTPP has obtained new contracts worth IDR33.5 trillion as of the end of October, 2017. The achievement reflects a growth of 27.4 percent compared to new contracts worth IDR26.3 trillion in the same period last year.

"Up to October 2017, PTPP succeeded in reaching a new contract of 82.5 percent of the total target for this year of IDR40.6 trillion," said Tumiyana, President Director of PTPP in Jakarta, Monday (27/112017).

He explained that the new contracts worth IDR33.5 trillion consisted of new contracts of IDR27.6 trillion from the parent company, and new contracts of IDR5.9 trillion from subsidiaries.

"Some of the projects that PTPP has achieved during October are: Akavia Semarang of IDR253 billion, Darmo Hill Apartments of IDR262 billion, and others," he said.

Meanwhile, the composition of ownership of the acquisition of new contracts come from state enterprises by 61 percent, private sector 29 percent, and Government 10 percent. For segmentation by type or type of work, ie building by 55 percent, EPC 16 percent, road & bridge 10 percent, and building water by 10 percent.

"Looking at the progress of the new contracts until October this year, the company is optimistic that the new contract target of 2017 targeted by management at the beginning of the year of IDR40.6 trillion can be achieved, and even exceeded by the end of this year," Tumiyana said.

The company has a strong business position in the national construction industry, has diversified its revenue sources and above-average cash flow protection.

These factors are the reason why Pemeringkat Efek Indonesia (Pefindo) has re-assigned idA + (Single A Plus) rating for PTPP, Sustainable Bonds I Phase I of 2013, and Sustainable Bonds I Phase II Year 2015 worth IDR1 Trillion where the outlook for the company's rating is stable for the period November 2017 to November 2018.

With idA rank means that PTPP has strong capability compared to other Indonesian obligors to fulfill long-term financial commitments.

Meanwhile, the plus sign on the rankings indicates that the ratings given are relatively strong and above the category average.

Tumiyana added that the company also expects capital expenditure in the next 3 years to reach an average of IDR21 trillion per year.

"The financing of capital expenditures comes from the company's capital, remaining funds of government investment in 2016, the sale of subsidiaries' shares through IPO, loans and issuance of securities," he explained.