JAKARTA - PT PP (Persero) Tbk (PTPP) sets a moderate target in its new contract growth for 2024, only approximately 5% compared to the numbers obtained in 2023. For context, the company projects to bag IDR 34.5 trillion worth of new projects at the end of 2023.

According to the 2023 Annual Public Expose of PTPP held virtually today (20/12), until the end of November (11M) 2023, PTPP has secured new projects worth IDR 30.2 trillion.

"In 2024, the area of the projects will not go far from infrastructure, building, and EPC projects from government, SOEs, and private sector," Novel Arsyad, President Director of PTPP, added.

The 5% growth target could be considered a safe goal, which is seemingly driven by the current position and future strategy of PTPP.

In terms of construction segment, PTPP seeks to optimise its core business by focusing portfolio in potential markets of government, SOEs, and private projects, whilst keeping its selective atttitude in EPC projects.

"We also aim to align our investment to our core business, construction," added Arsyad.

PTPP plans several divestments of its projects throughout the ear. "Until July 2023, we have divested IDR 105 billion worth of projects," claimed Sinur Linda Gustina, Director of Corporate Strategy and Human Capital Management of PTPP.

Some of the divesments planned and concluded this year include PT Indonesia Ferry Property, as well as PT Inpola Meka Energi and PT Odira Karang Agung under PT PP Energi, PT PP Promerti Suramadu under PT PP Properti Tbk (PPRO), and tender offer of vehicles and heavy equipment under PT PP Presisi.

"The total might be close to IDR 400 billion, indeed," Gustina mentioned.

However, the biggest divestment value is projected from Semarang-Demak Toll road, whose construction is still underway. "It will only be concluded in 2026," claimed Agus Purbianto, Director of Finance and Risk Management of PTPP.

"Divestment of Section I of Semarang-Demak Toll is projected to be able to significantly reduce our debt, which could only take place in 2026," Purbianto added. (ZH)