Will Get A Fund Of IDR 3.87 Trillion From Rights Issue, Adhi Karya Wants To Comply Six Projects

Screenshot of the DPR RI Commission XI Hearing Meeting with the Ministry of Finance and Adhi Karya. (Photo: Doc. Antara)

JAKARTA - PT Adhi Karya (Persero) Tbk will use funds of IDR 3.87 trillion obtained from the rights issue to complete the construction of six projects. The projects in question consist of three National Strategic Projects (PSN) and three non-PSN projects.

President Director of Adhi Karya Entus Asnawi said the proceeds from the rights issue of IDR 1.98 trillion would be obtained from the allocation of State Capital Investment (PMN), and IDR 1.89 trillion was expected to be obtained from the public.

He explained that the funds will be used to complete three PSNs, which include the Solo-Yogyakarta- NYIA Kulonprogo Toll Road project, with an allocation of IDR 1.4 trillion from PMN and IDR 350 billion from the public.

“We have started working on the Jogja-Solo toll road, because the land acquisition has already started. To secure the lands that have been acquired," said Entus during the Commission XI DPR RI Hearing Meeting with the Ministry of Finance and Adhi Karya, quoted by Antara, Tuesday, September 13.

Then, he continued, the Yogyakarta-Bawen Toll Road project, with an allocation of IDR 390 billion from PMN and IDR 145 billion from the public, and the Karian-Serpong Drinking Water Supply System (SPAM) project, with an allocation from PMN of IDR IDR 69 billion.

"The Karian SPAM is expected to be completed this year, along 45 kilometers (km) from Karian (Banten) to South Tangerang (Tangsel)," said Entus.

With that, the proceeds from the rights issue used for the three PSNs totaled Rp1.97 trillion from the PMN allocation and Rp564 billion from the public.

In addition, Entus continued that the proceeds from the rights issue will also be used to complete the construction of three non-PSN projects, which include the Medan Waste Area Integrated Waste Treatment Facility (FPLT), with an allocation of Rp0 from PMN and IDR 495 billion from the public.

"From the five hectares of land area (FPLT Medan), we have only worked on 1.5 hectares for part of the solid and liquid waste processing," said Entus.

Then, he continued, the JORR Elevated Cikunir-Ulujami Toll Road project, with an allocation from PMN of IDR 0 and IDR 662 billion from the public, and the East Cross Road preservation project, South Sumatra, with an allocation of IDR 0 from PMN and IDR 177 billion from the public.

"This is to increase the smoothness of the burden of the JORR Toll Road, the road must be increased so that it is not too congested, to relieve congestion," said Entus.

With that, the proceeds from the rights issue that will be used for these three non-PSN projects total IDR 0 from the PMN allocation and IDR 1.33 trillion from the public.

On this occasion, he explained that Adhi Karya's rights issue process would be held in October 2022.

In addition to completing the various projects, he said the purpose of the rights issue is also to strengthen the capital structure and prevent the company from making loans to banks.