PT PP Presisi, a subsidiary of state-owned construction firm PT Pembangunan Perumahan (PT PP) believes the value of the company’s new contracts will increase by between 20 percent and 30 percent next year.

This year, the company expects the value of new contracts to increase by 12 percent to Rp 5.8 trillion (US$414.28 million). As of the end of September, PP Persisi had secured new contracts worth only Rp 3 trillion. However, the company believes it will be able to reach its target by the end of the fourth quarter

During its public meeting at the Indonesian Stock Exchange (IDX) on Thursday, the company’s board of directors explained that civil works consisting mostly of road development projects would make up the largest part of next year’s contracts.

Recently, PP Presisi won a tender for the construction of the Probolinggo-Banyuwangi toll road.

In the fourth quarter of this year, the company will complete new projects such as the Bener dam in Purworejo, Central Java, and the Way Apu dam in Maluku. The company will also finalize a deal on the construction of a special road for coal deliveries in East Kalimantan and Central Kalimantan.

PP Presisi will act as a subcontractor of parent company PT PP’s projects, such as the Semarang-Demak toll road project and the construction of coal-fired power plants (PLTU) in North Sulawesi and Timor.

As of the end of September, the company had been constructing a number of toll roads, dams and diesel-fueled power plants (PLTD).

The toll roads include the Pandaan-Malang toll road, which is 95 percent complete, and the Manado-Bitung toll road, which is 57 percent complete. The dams include the Leuwi Keris dam and the Way Sekampung dam which are 42 percent and 75 percent complete, respectively.

PP Presisi finance director Benny Pidakso said the company plans to enter the nickel mining sector next year as a contractor in nickel smelting facilities and mining infrastructure.

“The reason for our expansion to nickel is because the smelting is relatively small in capacity, which suits our company’s capabilities right now,” said Benny.

 According to Benny, PP Presisi is currently building a nickel smelter in Kolaka, Southeast Sulawesi, and aims to win similar projects in Southeast Sulawesi and Central Sulawesi.

In first nine months of this year, PP Presisi’s revenue was eleven 11 percent higher than its revenue in the same period last year. Furthermore, PT Presisi’s gross profit also grew by 22 percent and its net profit by increased 6 percent year-on-year.

Earlier this month, PP Presisi signed a contract with PT Inti Pancar DInamika to construct 60-km-long special access roadways for coal deliveries in East and Central Kalimantan with an estimated value of US$ 160 million. (bry)