The publicly listed company projects to book at least Rp 39.1 trillion (US$2.93 billion) worth of new contracts this year, from Rp 32.6 trillion recorded last year. The optimism comes on the back of last year's achievement, when the value of its new contracts was 105 percent of the firm's initial target.

"The company is optimistic to exceed this year's target, supported by the government's programs to improve Indonesia's infrastructure quality," PTPP president director Tumiyana said as quoted in an official statement published by the Indonesia Stock Exchange (IDX) on Monday.

President Joko "Jokowi" Widodo has allocated Rp 387.3 trillion from the 2017 state budget for developing the country's infrastructure, a 22 percent increase from last year's allocation.

(Read also: Indonesia sees Japan as model for infrastructure development)

Infrastructure development across the archipelago has been one of the government's priorities during Jokowi's tenure, which will end in 2019.

At least Rp 4.7 quadrillion is needed to develop the ambitious infrastructure projects, which include 1,000 kilometers of new toll roads, 49 dams, 2,650 km of roads and 13 airports by 2019.

However, the government can only afford to provide around 41 percent of the total required funds, while the remainder is expected to be covered by state-owned enterprises (SOEs) and private companies.

With the projected higher new contract value, PTPP expects to see its revenue move northward by more than 50 percent compared to last year's target of between Rp 17 trillion and Rp 19 trillion.

Meanwhile, its net profit is expected to swell between 40 percent and 50 percent higher than last year's achievement.

"Further, the firm will take several corporate actions to support the firm's performance in 2017," Tumiyana went on.

PTPP plans to sell stakes in its subsidiaries, namely PP Pracetak, PP Peralatan and PP Energi through initial public offerings (IPOs) this year, along with another nine SOE subsidiaries.

It will also split its stocks and carry out a rights issue for its subsidiary, the publicly listed property developer PP Properti.

PTPP carried out a right issue last year to absorb Rp 2.25 trillion of state capital injection (PMN) aimed at strengthening the firm's capital. The rights issue successfully generated Rp 4.41 trillion of funds in total.

Previously, Indonesia's largest construction company Wijaya Karya (WIKA) said it expected to see its total contract value rise to Rp 102.9 trillion this year, a 23.9 percent increase from the target it set for 2016.

The 2017 order book of the publicly listed firm will likely be dominated by new contracts, which are predicted to make up 72.7 percent of the overall figure, according to WIKA director and corporate chief financial officer Steve Kosasih recently.

"The 2017 will be an ambitious one for WIKA as we are making significant progress on our projects such as the elevated MRT [mass rapid transit] in Tendean, South Jakarta, the Balikpapan-Samarinda toll road in East Kalimantan and of course, the Jakarta-Bandung high-speed railway," he said.

The firm has allocated Rp 12 trillion in capital expenditure (capex) this year, the majority of which will be allocated to develop its businesses and to fund ventures as well as its subsidiaries.

The company received Rp 4 trillion of state capital injection (PMN) last year to develop several major projects, such as the Kuala Tanjung port in North Sumatra, the Semanggi overpass in Jakarta and various toll road projects.

This article appeared earlier in our print edition on Wednesday. The second paragraph of the article has been revised after we mistakenly mentioned Rp 35.86 trillion as the value of new contracts PT Pembangunan Perumahan is targeting to book this year. The correct figure is Rp 39.1 trillion. We apologize for the error. - The Editor

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