JAKARTA. PT Dermaga Perkasapratama (DPP), a subsidiary of PT Bayan Resources Tbk (BYAN), has awarded a contract worth IDR 187.36 billion.

The contract was awarded to PT Nirmala Matranusa (NMN), a business entity affiliated with DPP due to the similarity of shareholders. According to idnfinancials.com data, NMN is owned directly by Low Tuck Kwong. On the other hand, Low Tuck Kwong also owns NMN shares indirectly through BYAN.

The contract received by the DPP is in the form of construction services for the Jetty expansion at the Balikpapan Coal Terminal (BCT) which is included in the waters of Balikpapan Harbor. This contract includes steel pipe pile driving services, foundation work, as well as installation of all structural and mechanical components.

In the signed agreement, the agreed time period for work on the project is 26 months.

BYAN management admitted that the contract was considered more profitable for the company in terms of price, if given to an affiliate. Apart from that, NMN is considered to have similar experience for the Jetty construction project. (KR/LM)