The DGIK GMS Agrees On The Investment Plan For Toll Road Projects

Photo: Doc. Nusa Konstruction Enjiniring

JAKARTA - With the provision as a construction company that has more than 40 years of experience in the world of Indonesian construction and has worked on various construction works coupled with the potential of quality human resources who are experts in toll road construction, and are also supported by qualified equipment to work on a number of toll road projects, the Board of Directors of PT Nusa Konstruksi Enjiniring Tbk (DGIK) decided on a number of these factors, as a strength and belief the company took part in developing its business as an investor in the construction of toll road projects in Jakarta.

In the Annual General Meeting of Shareholders (AGMS) of the 2022 Fiscal Year which was held at the end of June, President Director of PT Nusa Konstruksi Enjiniring Tbk (DGIK) Heru Firdausi Syarif said this was one of the agendas of the AGMS, which was in the form of a board of directors on investment plans on toll road construction projects. This was stated by Heru accompanied by Arvin Jahja Tjahjana when presenting the results of the GMS to the media in Jakarta, Wednesday 27 July. The other AGMS agenda contains approval and approval of the company's annual report for the financial year ending December 31, 2022, as well as the determination of the composition of the Company's Board of Management. Heru also added that at this Annual GMS there were two agendas at the meeting which became the initial milestone of the big plan prepared by the company, namely the change in the composition of the company's directors to strengthen and support the company's new strategy as well as the disclosure of investment plans on toll road projects.

"With the investment plan being presented to shareholders, the company will then prepare other administrative and technical matters in accordance with the applicable regulations and laws, and will be informed again at the Extraordinary GMS which we will soon hold again," said Heru.

According to the agenda of the DGIK Annual GMS, shareholders unanimously agreed to the current composition of the Board of Commissioners and Directors to:- President Commissioner: Hendro Martowardojo- Independent Commissioner: Ade Rahardja- Commissioner: Double Kusuma- President Director: Heru Firdausi Syarif- Director: Arvin Jahja Tjahjana- Director: Hudik Pramono- Director: Rizaldi Limpas

On this occasion, Heru also stated, in order to meet the applicable accounting standards related to the Financial Statements of the First Quarter of 2023 in April, the company made corrections to changes to financial reports.

"We convey that the inventory value increased from the previous Rp20,675,056,988.00 to Rp26,103,384,894.00, which was caused by the use of materials that had been released from the inventory warehouse, but became a contract burden. But the use of the material has not yet been carried out in the field, "said Heru.

Likewise, the recording of the down payment for the procurement of materials as a contract burden increased from the previous Rp29,731,357,676.00 to Rp34,651,334,769.00. This increase was due to the recording of the down payment for the procurement of materials as a contract burden, which resulted in an increase in the company's profit.

Heru explained that one of the parameters of this increase occurred because the work carried out by the company is currently dominated by infrastructure work projects (toll roads). Supported by heavy equipment which is mostly owned by itself and already controlled by it, the company's source of materials can make the company make efficiency in the cost of work.

In line with this, the Head of Research, Praus Capital Alfred Nainggolan, stated that the steps taken by the ranks of DGIK management were reasonable in the use of the applicable Financial Accounting Standard.

"We see corporate actions that cause changes in position in financial reports due to stock adjustments (supply) of material materials with applications to the use of these materials in building structures, including buildings and other infrastructure facilities including highways and bridges, which is a natural thing," he explained. "The change in the composition of financial reports which is a public report on the adjustment of stocks (supply) with their use in the field can become a burden, or Sustainable because the usage period is even the opposite if it is included in the calculation of accounting for goods whose use is transferred," added Alfred.

As one of the companies engaged in the construction sector and has experience in working on a number of important and potential buildings in this country, risk factors and building resilience are the main indicators of this company's important concern.

"That's why in the regularity process between administrative recording of building materials and application use in building structures, it is the main issue (important points) in this sector," said Alfred.

Moreover, today, the construction services sector is the main pillar of infrastructure development which plays a very important role in encouraging sustainable economic development, as well as becoming the foundation for increasing the nation's competitiveness in the midst of global competition.

The contribution from the construction sector to Gross Domestic Revenue (GDP) prior to the COVID-19 pandemic was recorded at the 4th largest contributor, where in 2018 it was 10.53 percent and in 2019 it increased to 10.73 percent of the national GDP.