PTPP Budgets IDR 4.3 Trillion For Capital Expenditure This Year, For What?

JAKARTA - The state-owned construction company PT PP (Persero) Tbk (PTPP) has budgeted capital expenditure (capex) of Rp. 4.3 trillion this year. The majority of these funds are used to work on existing projects.

PTPP Finance and Risk Management Director Agus Purbianto said the company has budgeted Rp 4.3 trillion for capital expenditure this year.

"As much as 80 percent is used for existing projects, the Semarang-Demak toll road is the main priority, section two must be completed this year, the Danareksa Tower must be completed in October 2022," he explained in a press conference at the PT PP Office, Jakarta, Tuesday 5 March.

In addition to capital expenditures for project needs, the company also budgets for smaller capital expenditures, such as replacing obsolete equipment at its subsidiary PT PP Presisi Tbk (PPRE) as well as investment spending that is reserved for the construction of Indonesian houses in Makkah.

On the other hand, part of the funding came from investment loans, particularly the completion of the Semarang-Demak toll road session II through a KSO, while the equity for the Danareksa Tower development came from the transfer of the remaining rights issue and IPO funds.

"We still have a balance of receivables that will be paid in June 2022, related to the divestment of the Pandaan-Malang, Medan-Kualanamu-Tebing Tinggi toll roads, we will do it in June," he explained.

In addition, the company has just issued bonds which are targeted to be liquidated at the end of April 2022. "We have issued bonds at the end of April, we can liquidate them effectively," he added.