The Company Whose Shares Are Owned By Indonesia's Richest Widow, Conglomerate Arini Subianto, Has A 69 Percent Drop In Profits

Illustration. (Photo: Doc. Antara)

JAKARTA - The construction company PT Nusa Raya Cipta Tbk (NRCA) experienced a significant decline in profit in the first quarter of 2021. NRCA's profit fell 69.75 percent to Rp8.48 billion, down from the same period the previous year of Rp28.04 billion.

In NRCA's financial report quoted Monday, June 7, the decline in profit was partly driven by a 47.66 percent decline in the company's revenue from Rp653.35 billion in the first quarter of 2020, to only Rp341.95 billion in the first three months of this year.

In the NRCA quarterly report, the company's management stated that the COVID-19 pandemic had an impact on the operations and business activities of the company and its subsidiaries, directly and indirectly.

This can be seen from several new construction projects/tenders experiencing temporary delays, although the implementation of existing construction projects is still ongoing.

The impact of the social restriction policy is also felt by the hotel sector, where hotel occupancy rates have decreased significantly since the end of March 2020.

Meanwhile, NRCA's assets were stable at Rp2.21 trillion. Current assets worth Rp1.98 trillion and the remaining Rp235.80 billion are non-current assets.

The company's liabilities slightly decreased compared to the position at the end of 2020, to Rp1.05 trillion with short-term liabilities reaching 90 percent of the total liabilities of Rp949.35 billion. Meanwhile, its long-term liabilities were recorded at Rp105.97 billion.

The company's equity at the end of March 2021 was recorded at Rp1.16 trillion, down slightly from the position at the end of December 2020 of Rp1.15 trillion.

Nusa Raya Cipta is a company engaged in construction services for commercial buildings and infrastructure in Indonesia and is a member of the PT Surya Semesta Internusa Tbk (SSIA) group.

SSIA itself is a company whose 7.8 percent stake is owned by PT Persada Capital Investama, an entity owned by conglomerate Arini Subianto, the richest widow in the country. Arini is in the 47th position of the richest person in Indonesia according to Forbes as of December 2020 with assets reaching US$610 million or around Rp8.8 trillion.

Referring to NRCA's financial statements, SSIA holds a 63.35 percent stake in NRCA, while the Saratoga Group only has 7.20 percent. PT Saratoga Investama Sedaya Tbk (SRTG) is a business group founded by the Minister of Tourism and Creative Economy Sandiaga Uno and conglomerate Edwin Soeryadjaya.