PT PP Presisi, a publicly listed heavy equipment rental and construction company, is expanding into mining services as part of an effort to become a major integrated construction company.

PP Presisi, a subsidiary of state-owned construction firm PT Pembangunan Perumahan (PTPP), has recently secured contracts to provide coal-hauling companies with dump trucks in South Sumatra as part of an expansion plan.

The company’s finance director, Benny Pidakso, said in Jakarta on Monday that PP Presisi signed the two contracts earlier this year with two coal-hauling corporations from South Sumatra — PT Barasentosa Lestari and PT Sriwijaya Bara Logistik.

Under the contracts, which are worth Rp 1 trillion (US$ 74.10 million) each, PP Presisi would provide 500 to 700 dump trucks to each company. The contracts would be valid for four to five years.

Benny said his company was also in the middle of negotiations with another coal-hauling corporation from South Sumatra, but he refused to disclose its name as the negotiation process was ongoing.

“We estimated that the projects will be able to contribute 10 to 15 percent to the company’s total revenues this year,” he told reporters during a media gathering held at Graha CIMB Niaga.

He also estimated that the two contracts and the one under negotiation were expected to contribute up to Rp 350 billion per year to the company’s revenue.

Benny also said the company had allocated Rp 1.6 trillion for this year’s capital expenditure, 80 percent of which would be used to purchase heavy equipment such as dump trucks, excavators and bulldozers for the coal-hauling projects.

The company’s president director, Iswanto Amperawan, said he hoped this year’s revenue would reach Rp 4.42 trillion, a 145 percent increase from the company target last year. The revenue, he said, included contracts carried over from last year.

“The value of the carryover contracts from 2017 to 2018 could reach Rp 9 trillion, which is more than the Rp 7.5 trillion targeted in new contracts,” he said.

In 2018, the company expects to be involved in several infrastructure projects, such as road, toll road, railway, airport, dam and high-rise building construction projects. As for its company strategy, PP Presisi is also planning to expand into power plant development; building and water related bore pile; and logistics and transportation.

To expand into power plant construction and engineering, PP Presisi would acquire two companies with experience working in the field in the first half of 2018.

According to Benny, one of the acquisition targets would be a power plant erector company jointly owned by Japanese and local investors.

PP Presisi was established in May 2004 as an equipment rental service provider named PT Prima Jasa Aldodua (PT PJA). The company changed its name into PT PP Alat Konstruksi after being acquired by PTPP in 2014. It later changed its name to PT PP Presisi in May 2017.

The company was listed on the Indonesia Stock Exchange on Nov. 24 with 10.2 billion in shares. As of January 2018, the company recorded Rp 4.2 trillion in market capital. The company’s revenues and net profits were estimated at between Rp 1.81 trillion and Rp 188 billion in 2017, respectively.

The company has been involved in several notable infrastructure projects, including toll road construction in South Sulawesi that started in 2016 and dam construction in Way Sekampung, Lampung, that started
in 2017. (dpk)

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