JAKARTA – PT PP (Persero) Tbk (PTPP) plans to divest its subsidiary's share assets this year to support its strategy to refocus on its core business line, namely construction.

Agus Purbianto, PTPP Finance Director, in the PTPP Live 2024 Public Expose today (28/8), mentioned several assets targeted for divestment. One of them is a 24.10% stake in PT PP Semarang Demak, which is responsible for the construction of the Semarang-Demak toll road.

Apart from that, there are also 100% shares in PT Ultra Mandiri Telekomunikasi, 48% shares in PT PP Infrastruktur, and 47.81% shares in PT Celebes Railway Indonesia.

According to Purbianto, the total gross profit target from divestment activities this year reaches more than IDR 1 trillion, consisting of 63% of infrastructure projects and 37% of plant & equipment projects.

On the same occasion, Purbianto also explained the corporate strategy to improve the company's performance. One of them, apart from divestment and asset recycling, is selective participation in projects.

"We focus on projects with secure funding sources," said Purbianto.

PTPP management seems quite introspective with quite high leverage on the company's balance sheet.

“This divestment will significantly reduce our leverage. "This is also one way to enlarge the company's capacity coverage, so that it can accelerate PP Infra's performance," added Purbianto. (ZH/LM)