JAKARTA. PT Pembangunan Perumahan (Persero) Tbk (PTPP), a state-owned building construction company, plans to divest some of its assets with a total value of IDR 1.4 trillion this year.

Agus Purbianto, Director of Finance and Risk Management of PTPP, claimed that the asset divestment is intended to improve the company’s cash flow. This plan, Purbianto said, is a part of PTPP’s program set in the Work Plan and Budget of 2023.

“This asset recycling, in one hand, is related to divestment of assets, in the form of shares or other objects of the company,” Purbianto explained.

The assets that will be divested by PTPP is shares portion in several of its subsidiaries and their subsidiaries. Furthermore, the company also plans to let several other assets go, including land and building.

One of the assets that will be divested by PTPP is heavy equipment such as dump truck and excavator owned by PT PP Presisi Tbk (PPRE), its subsidiary. Purbianto said that these assets are no longer needed to support future business activities of the company.

“This business is indeed divested. We are now focusing on businesses that are related to heavy equipment for projects and mining areas,” Purbianto mentioned.

Purbianto also aims to secure IDR 1.4 trillion from the divestiture of those assets this year. As of now, several assets have entered the non-disclosure agreement (NDA) stage, while others remain in the offering stage. (KR/ZH)