Asset Recycling Program Strengthens PTPP's Performance

Illustrations. (Photo: PTPP doc.)

JAKARTA - PT PP (Persero) Tbk is aiming for the company's net profit to grow by around 18 percent and new contracts to grow around 47 percent in 2022 compared to the realization in 2021. To achieve the performance growth target, PTPP has prepared various strategies and policies this year.

In addition, the strategies prepared for the short, medium and long term are carried out to maintain business continuity and increase sustainable financial performance growth.

Director of Finance & Risk Management PTPP Agus Purbianto said, several company strategies that have been prepared this year, among others, increasing market penetration capabilities, especially in the champion sector which is PTPP's advantage at this time, expanding and focusing on portfolios owned by the Government, BUMN, and Work. With SOEs, improving investment management, increasing the company's balance sheet capacity, one of which is done by focusing on smart asset recycling programs including asset recycling in the property sector, etc.

"The strategy for improving investment management is optimizing the investment program in the Batang Integrated Industrial Estate (KIT). PTPP has the opportunity for new construction contracts from this investment. The opportunity comes from infrastructure project work and factory construction in the area," said Agus. in a written statement, Thursday, January 20.

This year and next year, Agus continued, PTPP still has various opportunities to work on a number of other construction projects at KIT Batang, such as maturation of a 2,650 ha land area, construction of management and worship facilities, construction of ready-to-use factories, dryports, seaports, jetty, and infrastructure & other utilities development.

"In addition to the investment program, in 2022 PTPP will also carry out asset recycling for both the property and non-property sectors. In the non-property sector, PTPP will divest or recycle assets in the sale of heavy construction equipment where the proceeds from the divestment will be used for renewal and investment. new heavy equipment tailored to the current needs of the company and its subsidiaries, such as the needs of mining areas," he explained.

In addition, PTPP will also carry out asset recycling through a share disposal scheme in four joint venture companies established by PTPP and its Subsidiaries in the Property, Power Generation and Petroleum sectors.

As one of the steps to accelerate asset recycling in the property sector, PTPP in collaboration with PT Danareksa Sekuritas (Persero) will launch a program to accelerate post-pandemic performance improvement. With the implementation of the program, it is hoped that it will open up opportunities for investors to own property inventory assets managed by Construction BUMN.

This is done through the asset release mechanism (Asset Monetization) that has been established. This step is expected to improve the performance of BUMN in the context of company transformation in line with the direction of the Minister of BUMN RI Erick Thohir.

In this program, PTPP opens opportunities for investors to own the assets of its subsidiary which is engaged in the property sector. A total of 19 property assets owned by PT PP Properti Tbk (PPRO) and PT PP Urban (PPUB) will be released in bulk.

The property assets are located in big cities consisting of high rise buildings (student apartments, premium apartments to low-medium apartments) and vacant land (landed) with a total area of 46.1 hectares.

One of PPRO's projects participating in the program is the Grand Kamala Lagoon, which is located in the heart of Bekasi city and has a lifestyle mall within the area. By owning the dwelling, consumers can feel the benefits directly where the ready stock unit can be directly occupied or leased back so that it has a selling value.

PTPP as one of the state-owned construction companies also takes part in the program where the implementation of these activities can increase the company's liquidity. In addition, the program is also an alternative funding from the equity side apart from other funding sources, improves the company's capital structure by suppressing the increase in interest-bearing debt and can improve performance because there are profits that can be recorded from these transactions.

"In line with the SOE company transformation program launched by the Indonesian SOE Minister Erick Thohir, PTPP hopes that this corporate action can improve the performance of the parent and subsidiary companies. The property assets will be offered partly in groups and partly independently. Investors who are interested in participating This program is expected to complete the administrative process and registration process. Full details regarding the process will be announced at the upcoming Product Launch event," said PTPP Finance & Risk Management Director Agus Purbianto.