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onstruction company PT Adhi Karya (ADHI) is predicting massive business growth next year, following increasing contributions from its subsidiaries running property and real estate businesses.

The state-owned company is targeting to reap Rp 13.2 trillion (US$1.37 billion) in revenues next year, increasing by around 69 percent compared to this year’s revenue projection of Rp 7.8 trillion.

“We are expecting to see growing contributions from property and real estate businesses by around 30 percent. Other businesses will also grow; our core business, construction, will increase by around 17 percent,” Adhi Karya’s corporate secretary, Amrozi Hamidi, said on Thursday.

Adhi Karya currently has two subsidiaries running property and real estate businesses: PT Adhi Persada Properti, which focuses on developing high-rises, and PT Adhi Persada Realty, focused on developing landed houses.

The property business is booming around the country, witnessing growing demand on the back of economic growth and the increase in the number of middle-income earners.

According to the company’s financial report for the first nine months of the year, real estate’s contribution to Adhi Karya’s total revenues reached Rp 100.79 billion, increasing from Rp 62.95 billion in the same period last year. Meanwhile, revenues from property stood at Rp 73.17 billion. The property business contributed nothing during the first nine months of 2011, the financial report showed.

Amrozi said that the company was set to launch a property project called Taman Melati Margonda 2 in Bekasi, West Java, and a real estate project called the Taman Dhika Cinere in Sidoarjo, East Java, on Dec. 15.

In its construction business, Adhi Karya is aiming to collect new contracts next year amounting to Rp 14.4 trillion, of which around Rp 2.75 trillion will be in joint operations. The combined contracts total will be up by about 33 percent compared to this year’s estimation of Rp 10.8 trillion.

The company has reaped new contracts worth Rp 9.5 trillion as of the end of October.

The company had actually targeted to reap Rp 13 trillion worth of new contracts by year end.
However, several delayed projects forced the company to revise its figure. The delayed projects will likely be offered next year, leaving the company optimistic with its estimates of new contracts, according to Amrozi.

He said that one of the projects delayed until next year was the development of a dock in Palembang, South Sumatra, worth around Rp 250 billion. The company had also previously set its sights on the development of a coal-fired power plant in Timika, Papua, with a contract of work (CoW) amounting to Rp 1 trillion. Amrozi confirmed that the project had been cancelled, however, due to financing issues.

Given its positive estimations on new contracts as well as property and real estate, Adhi Karya was forecasting that it would be able to book more than Rp 450 billion in net profits next year, more than double this year’s net profit estimation of Rp 205 billion, according to Amrozi.

Shares in Adhi Karya closed at Rp 2,025 apiece on Friday, an increase of 2.2 percent compared to Rp 1,980 a day earlier.