Posted on 10 Apr 2015
Publicly listed construction
companies have wrapped up the first quarter with mixed results, with those
relying on property projects appearing closer to realizing their targets than
those banking on government infrastructure projects.
State-run construction firm Pembangunan Perumahan (PP), for instance, pocketed
Rp 6.7 trillion (U$520.23 million) worth of new contracts by the end of March,
more than twice its Rp 3.2 trillion target for the quarter — according to its
recently published written statement.
The company has met around 25 percent of its 2015 new contract target of Rp 27
trillion, or around a 30 percent increase compared with the Rp 20.24 trillion
it generated last year.
Most of the projects the company worked on in the first quarter comprised
towers and residential projects, such as Mandala City in Makassar (South
Sulawesi) worth Rp 2.5 trillion, One Otium Residence Antasari in South Jakarta
worth Rp 472 billion, and Gunawangsa apartments in Surabaya (East Java)
amounting to Rp 327 billion.
Acset Internusa, which recently became part of diversified conglomerate Astra
International Indonesia through an acquisition carried out by its heavy
equipment subsidiary United Tractors, is also on track to achieving its
full-year target, having reaped Rp 1.3 trillion of its Rp 2 trillion annual
target in the first quarter.
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“We aim to reap Rp 17 trillion by the end of June and we are quite confident
we can make it happen,”
The new contract came from Thamrin Nine office and Langham Senopati residential
projects, both in Jakarta.
“We have met about 75 percent of our project and we want to focus on meeting
our annual target, but there is a possibility that we might want to revise up
our target later this year,” Ronnie Tan, president director of Acset, told
reporters recently.
Meanwhile, state-run construction firm Wijaya Karya (WIKA) booked Rp 4.6
trillion worth of new contracts to date, or nearly a 50 percent increase
compared to the Rp 3.11 trillion it recorded in the first quarter of last year.
The first quarter result, however, was only around 15 percent of the company’s
target for the year of around Rp 30.59 trillion, around a 77 percent increase
compared to the Rp 17.31 trillion the company made by the end of last year.
“It is because we rely on government infrastructure projects, we don’t have a
significant amount of private projects in our portfolio. We have to wait for
progress in infrastructure project tenders to boost our new contracts,” said
Suradi, corporate secretary of the largest publicly listed builder. “We aim to
reap Rp 17 trillion by the end of June and we are quite confident we can make
it happen,” he went on.
WIKA, as previously reported, aims to see projects from the government and
fellow state-owned companies make up around 75 percent of its new contracts
this year.
Kiswoyo Adi Joe from Investa Saran Mandiri said it was only normal for
construction firms’ first quarter new contracts to vary from one another, with
builders relying on government projects most likely to start slow.
“Those with a strong infrastructure profile might only see their contracts
surge around the second or third quarter as they have to wait for updates from
the government. I am, however, quite optimistic that most construction firms
will meet their full-year target given the new government’s planned
infrastructure projects,” he said.
Waskita Karya and Adhi Karya — other state-run builders that also mostly work
on infrastructure projects — pocketed Rp 2.7 trillion and Rp 2 trillion worth
of new contracts, respectively, by the end of March – or around 13 percent of
their annual target of Rp 20.8 trillion and Rp 15.2 trillion.
