PTPP Affirms the Current Condition of the Company is Healthy

Foto: Dok. PTPP

JAKARTA - The state-owned construction company, PT PP (Persero) Tbk (PTPP) clarified several indications in the news amid the widespread issue of the performance of BUMN Karya. Regarding the company's health level, PTPP managed to grow the health level in 2022 to 75.75 from the previous year of 71.25 in the "Healthy A" category.

The company's soundness level assessment is assessed based on the Decree of the Minister of State-Owned Enterprises of the Republic of Indonesia Number KEP-100/MBU/2022 concerning Assessment of the Soundness Level of State-Owned Enterprises. The Soundness Rating is assessed based on three assessment aspects which include: Financial Aspects, Operational Aspects, and Administrative Aspects in the company.

In terms of the ability to pay off its obligations, PTPP emphasized that the company managed to regain a Single A (idA) rating with a stable outlook from PT Pemeringkat Efek Indonesia (Pefindo). The corporate rating is valid for one year from March 2023 to March 2024.

The Single A rating indicates that PTPP has a strong ability to meet financial commitments in the long term. At present, the increase in corporate debt is in line with the increase in the company's assets and operating income, so it can be said that this is reasonable.

Since 2016, PTPP has carried out various major corporate actions through the establishment of BUJT and other investment activities, such as the establishment of PT PP Infrastructure, PT PP Semarang Demak, PT KIT Batang, PT Celebes Railways Indonesia, PT Jasamarga Balikpapan Samarinda, PT Jasamarga Pandaan Malang, and other. This funding contributes to the company's profits both through business line synergies, as well as opportunities to obtain new projects through investment activities.

Reviewing the company's cash ratio, the data shows a decrease, but this happened due to the absorption of Rights Issue and PMN funds that the company managed to collect in 2016. PTPP raised fresh funds from the results of a Limited Public Offering (PUT) through a Rights Issue program of IDR 2.16 trillion and State Capital Investment (PMN) from the Government of IDR 2.25 trillion.

Until now, PTPP has absorbed 24 percent of these funds to meet the company's working capital needs, and the remaining 76 percent has been used as company spending capital to support government programs in developing priority infrastructure projects, such as the construction of port areas, toll roads, medium-sized apartments, industrial areas, and power plants.

In order to increase the company's cash flow, PTPP has carried out corporate actions in the form of disposal of assets of associated entities, namely: Pandaan Malang Toll Road, Medan Kualanamu Tebing Tinggi Toll Road, and Cisumdawu Toll Road. Going forward, PTPP will continue to strengthen cash flow to support the company's operations through the disposal of assets. PTPP will also continue to strengthen its core construction business by being selective in selecting prospective projects that contribute to the company's profits and cash flow.

PTPP managed to survive in the midst of challenging conditions during the past COVID-19 pandemic, where the company was able to compete and prove its performance by increasing compared to the previous year's performance. In the midst of the 2020 COVID-19 pandemic, the company still managed to record a net profit for the year of IDR 311 billion.

After the COVID-19 pandemic, although it has not been able to return to its previous performance due to the post-pandemic effects, PTPP is consistent in increasing its performance growth amidst conditions of global and national economic uncertainty which is reflected in the growth of new contracts, operating income and gross profit in the 2022 financial year.

On a year on year (YoY) basis, new contracts grew by 46.64 percent, operating income grew by 12.87 percent, and gross profit grew by 23.00 percent. The main contribution to the company's performance is dominated by the main core business with revenues of IDR 12.11 trillion, this shows the strength of PTPP's business line in the construction sector.

PTPP Corporate Secretary Bakhtiyar Effendi said, the company's condition is currently in a "Healthy" condition reflected in the results of the soundness level that has been objectively assessed by KAP. The transformation of the company's business line resulted in an increase in liabilities, but this was also offset by an increase in the company's assets and capital structure so that this was reasonable.

“Assessment of the company's condition must be based on objective, relevant and comprehensive data. It is undeniable that the impact of the COVID-19 pandemic has greatly affected the company's performance. Even though the company's condition has not fully recovered, PTPP shows consistency to continue to grow. Once again we say that PTPP remains committed to fulfilling all obligations from stakeholders and lenders properly", said Bakhtiyar Efendi in his statement, Friday April 14 .