PP to partner with state firms on Rp 5t bid
Raras Cahyafitri, The Jakarta Post - 07/05/2012
State-owned developer PT Pembangunan Perumahan (PT PP) is in the process of attempting to establish joint ventures with two undisclosed state-owned firms in an attempt to improve the company’s portfolio in the property business.
Under the joint venture plans, PT PP is expecting to make use of the unproductive lands of its counterparts.
“We have two big property projects under study, which will be joint ventures reflecting our synergies with two state-owned enterprises,” PT PP corporate secretary Betty Ariana said last week.
She cited that the projects would involve development of commercial center and apartments in Jakarta, which needed total investment in the range of Rp 3 trillion (US$327 million) to Rp 5 trillion.
“We hope that the projects will be started within this year. The development will be carried out gradually and will need about three to five years before completion,” Betty said, declining to reveal which enterprises PT PP would cooperate with.
Betty played down that the joint ventures would involve toll road operator PT Jasa Marga and textile company PT Industri Sandang Nusantara, as the company recently said.
PT PP and Jasa Marga have a plan to utilize the latter’s land surrounding toll road project in Surabaya, East Java.
“We are still evaluating cooperation with Jasa Marga and Industri Sandang. We have other plans to establish joint ventures with two other state owned enterprises,” she said.
PT PP reaped Rp 714.87 billion in revenue in the first three months of the year, mostly from EPC (engineering, procurement and construction) contracts.
“Our property business remains small given contribution to the company’s total earnings at about 5 percent. That is why we want to build synergies with other state-owned firms by making use of their unproductive land,” Betty said.
Betty revealed that her company, under its consortium with PT Indo Fuji Energi, recently won a contract for building a coal-steamed power plant with a capacity of 100 megawatts worth Rp 917.59 billion in Duri, Riau. PTPP will need about 10 months to finish the project.
PT PP secured new contracts worth Rp 2 trillion as of April. The company is aiming to collect up to Rp 16.8 trillion in new contracts by the end of the year.
“Our winning rate is about 40 to 45 percent,” Betty said.
In addition to the power plant project, PT PP is working on development of an apartment complex belonging to developer PT Pakuwon Jati in Surabaya, as well as several other projects in Makassar, a realty project in Semarang of Central Java and a budget hotel in Bandung.
PT PP reported Rp 28.26 billion in net profits in the first three months of the year, increasing by 16 percent from Rp 24.18 billion in the same period last year.