JAKARTA - PT PP Properti (Persero) Tbk (PTPP), a state-owned construction company, reveals the reason behind its profit slippage despite its confidence in its revenue performance. The company aims to secure 14.11% year-on-year (yoy) surge of revenue to IDR 21.6 trillion at the end of this year.

However, according to the 2023 Annual Public Expose of PTPP held virtually today (20/12), PTPP actually reported 9.18% yoy drop in revenue in Q3 2023. As a result, PTPP recorded 14.5% yoy decline in its net profit at the end of Q3 2023.

"In Q3 2023, many of our subsidiaries struggled. The market and sales of PT PP Properti Tbk (PPRO) have yet to recover, further burdened with interest expenses," Agus Purbianto, Director of Finance and Risk Management of PTPP, explained.

Furthermore, PT PP Energi is also encumbered with interest expenses, and the operation in one area has been put to a halt to cut off worse losses.

Lastly, Section I of Semarang-Demak toll road, which is the part that will be linked to Transjawa toll and generate revenue, has yet to operate. It leads to another downturn.

"Profit in the holding entity is quite decent. However, losses in our subsidiaries took a toll on our consolidated profit," claimed Purbianto.

"We have carried out restructuring schemes to assist these subsidiaries," Purbianto added. He also said that for now, PTPP will focus on projects under construction, which aligns with its strategy to strengthen its core business.

In 2024, PTPP will be working on several national strategic projects, including water reservoirs such as Bagong Dam in Trenggalek, East Java, and Manikin Dam in NTT.

"We also project completion and big production of Bayung-Lencir-Tempino toll road and Probowangi toll road in 2024," added Yul Ari Pramuraharjo, Director of Operation in Infrastructure Segment. (ZH)