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Hutama Karya eyes sales jump from trans-Sumatra road projects
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Connecting people: President Joko "Jokowi" Widodo (second left) inspects the construction of the Solo-Kertosono toll road in Karanganyar, Central Java, on Oct. 15. Since his inauguration in 2014, the President has highlighted the importance of boosting infrastructure development to spur economic growth. (JP/Ganug Nugroho Adi)
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tate-owned construction company Hutama Karya expects a 63.6 percent increase in sales to Rp 18 trillion (US$1.34 billion) in 2017 from projected sales of Rp 11 trillion this year.
President director I Gusti Ngurah Putra said the company expected the completion of two sections of the trans-Sumatra toll road to be the main contributor to the company’s sales next year.
“We are sure that the Medan-Binjai toll road section, spanning about 17 kilometers, and the Palembang-Indralaya section, which is 22 km in length, will commence operation by next year,” he said.
With the expected jump in sales, the company projects its net profit to more than double to Rp 1 trillion next year.
Based on Government Regulation No.117/2015, Hutama Karya is assigned by the government to develop 24 sections of the trans-Sumatra toll road project, which spans 2,709 km in length.
To support the project, the company plans to launch a series of bonds worth Rp 6.5 trillion until 2018.
Putra, however, said Hutama Karya had no plans for an initial public offering anytime soon. (hwa)
