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Jakarta Post

Construction SOEs cut revenue targets amid delays in government projects

  • Riska Rahman and Riza Roidila Mufti

    The Jakarta Post

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JAKARTA   /   Mon, October 7, 2019   /  03:44 pm
The Jakarta Post Image
Workers operate large cranes during the construction of the LRT on Jl. Rasuna Said, Kuningan, Jakarta, in March, 2018. Stated-owned construction companies have lowered their revenue targets following the postponement of several government infrastructure projects(Antara/Galih Pradipta)

State-owned construction companies have lowered their new contract and revenue targets for this year following the postponement of a number of the government’s infrastructure development projects. Construction firm PT PP, for example, has cut its contract target by about 10 percent to only Rp 45 trillion (US$3.18 billion) from an initial target of Rp 50.3 trillion. “A number of government infrastructure projects have been pushed back, while several private companies are either postponing or canceling their projects this year,” the company’s president director Lukman Hidayat said in Jakarta on Thursday, last week. As a result of the revision, Lukman projected the company’s revenue would only reach Rp 28 trillion this year, lower than its initial target of Rp 30 trillion. However, he refused to go into detail on the net profit projection as it was still ...