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Hutama Karya raises Rp 750b for projects

State-owned contractor PT Hutama Karya will issue Rp 750 billion (US$7

Mariel Grazella (The Jakarta Post)
Jakarta
Fri, May 31, 2013

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Hutama Karya raises Rp 750b for projects

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tate-owned contractor PT Hutama Karya will issue Rp 750 billion (US$7.65 million) bonds to raise money for their infrastructure and utility projects across the archipelago, as well as business expansion.

'€œWe will utilize 60 percent of the generated funds for our capital expenditure and the remaining 40 percent for investments in our subsidiaries and business expansion activities,'€ Hutama Karya president director Tri Widjajanto Joedosastro told a press conference on Thursday, adding that the book building period would take place May 30 to June 13.

Hutama Karya'€™s subsidiaries comprise PT Hakaaston, a civil construction contractor, PT Hakapole, which operates in the stainless steel sector, and PT HK Realtindo, which develops residential and office properties.

Hutama Karya director for operations Indradjaja Manapol said the company'€™s capital expenditure and investments would center around major infrastructure projects, such as the construction of roads, bridges, airports and harbors, while planning to establish business units that would handle utility projects.

'€œWe are pursuing new businesses, such as the provision of potable water,'€ he said.

The company is looking to construct energy and potable water networks in Greater Jakarta and other regions on Java, as well as on Sumatra, Bali and Sulawesi.

Widjajanto said major projects the company was engaged in this year included the construction of an underground section of the mass rapid transit (MRT) in Jakarta.

Hutama Karya is part of a consortium, comprising Japanese firms Shimizu, Obayashi and the Sumitomo Mitsui Construction Company, responsible for the construction of the Jakarta administration'€™s Rp 3.6 trillion MRT project, which is slated for completion in 2017.

'€œWe are responsible for the section stretching between Dukuh Atas and the Hotel Indonesia [traffic circle],'€ Widjajanto said.

Indradjaja said that in addition to government projects, the company was developing office buildings and apartments.

'€œWe started an apartment project, worth Rp 400 billion, last month,'€ he said.

He added that payments from projects funded by the private sector were not as guaranteed as those from the government.

'€œThat is why we would like to intensify our [involvement in] government projects,'€ he said.

According to Indradjaja, the company is currently overseeing around 160 projects.

'€œWe'€™re seeking to book contracts worth Rp 14.5 trillion this year, up by 30 percent compared to the value of contracts booked in 2012,'€ he said.

The company reaped Rp 5 trillion in revenues throughout 2012, or almost 40 percent higher than that in 2011. However, its net profits slid 7.3 percent to Rp 107.7 billion from a year earlier.

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