Ambitious targets of Construction SOE issuers
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Target Ambisius Emiten BUMN Karya
23 April 2025
By Muawwan Daelami
JAKARTA, ID — The performance of Construction SOE issuers showing gradual recovery has become the basis for setting ambitious targets this year. However, various challenges continue to arise.
Indications of improvement in the performance of Construction SOE issuers can be seen from their success in increasing profits and maintaining operational excellence in the 2024 fiscal year (FY 2024). They continue to reduce losses each year despite being burdened with significant debt.
For example, PT Adhi Karya Tbk (ADHI). This company managed to record a profit of Rp252 billion in FY 2024, despite its revenue being pressured by 33.48%. The cost of revenue managed to be maintained as efficiently as possible at Rp11.7 trillion, much lower compared to the previous year’s cost of revenue which reached Rp17.7 trillion. In terms of the balance sheet, ADHI’s equity strengthened and its liabilities decreased.
Unsurprisingly, ADHI is targeting ambitious goals this year. Kiwoom Securities, in its latest research published on Monday (21/4/2025), noted that ADHI is aiming for new contracts this year in the range of Rp27-28 trillion, focusing on the transportation, energy, and property sectors. “The company hopes to take advantage of the government’s priority in the infrastructure budget,” wrote Kiwoom Securities.
Similarly, another Construction SOE member, PT PP Tbk (PTPP), is also setting high targets this year. Although the company’s profit decreased by 13% to Rp415 billion in 2024, its revenue surged by 7.3% to Rp19.8 trillion. Kiwoom Securities’ research mentions that PTPP is targeting new contracts in 2025 amounting to Rp31 trillion, focusing on large infrastructure projects and the renewable energy sector.
Additionally, PTPP’s President Director, Novel Arsyad, revealed that this year PTPP will also maximise contract opportunities from the government’s strategic programme, namely the Free Nutritious Meals (MBG), by building MBG kitchens. The government plans to build 1,500 MBG kitchens through a tender process, making this a target contract for PTPP.
Novel added that the funding for the MBG kitchen project will come from the state budget (APBN). “So, (MBG Kitchen) will be a contract targeted by PTPP,” Novel told Investor Daily recently.
Bond Repayment
Recently, PTPP has repaid the Sustainable Bonds III Phase II Year 2020 Series A worth Rp140 billion and the Sustainable Sukuk Mudharabah I Phase II Year 2022 Series A worth Rp60 billion on 18 April 2025. The payment of the bonds and sukuk with a 3-year tenor and a 6.5% coupon was made earlier than the maturity date on 22 April 2025.
PTPP’s Finance Director, Agus Purbianto, stated that the repayment of the bonds and sukuk mudharabah was a fulfilment of obligations and a commitment by PTPP as a public company that prioritises and implements good corporate governance principles.
“PTPP has repaid the bonds on 18 April 2025 by transferring funds to the KSEI account as repayment of the bonds and sukuk mudharabah that will mature on 22 April 2025. This step demonstrates PTPP’s commitment to managing the company’s finances and our efforts to maintain the credibility and trust of stakeholders in the company,” Agus explained in an official statement on Monday (21/4/2025).
Meanwhile, PT Wijaya Karya (WIKA) and PT Waskita Karya Tbk (WSKT) have not yet set new contract targets for this year. In its research, Kiwoom stated that WIKA has prepared a long-term corporate plan (RJPP) for 2025-2029, emphasising the enhancement of technical capabilities and collaboration with global Engineering Procurement and Construction (EPC).
“WIKA’s main focus is on the development of national strategic infrastructure projects and the EPC sector,” wrote Kiwoom. Throughout 2024, WIKA managed to reduce losses from Rp7.1 trillion to Rp2.2 trillion with a current ratio of 158% and a gearing ratio of 2.71 times.
Waskita aims for project performance growth of 70% in 2025, focusing on the completion of six national dam projects and financial restructuring as part of the company’s long-term plan.
Similar to WIKA, WSKT also successfully reduced total debt by 17.5% to Rp69.3 trillion in 2024 compared to two years earlier at Rp84 trillion.
Main Challenges
According to Kiwoom Securities’ research, overall, other Construction SOE issuers showed varied performance, including facing challenges in revenue and net profit in 2024. However, for 2025, they have set ambitious targets focusing on new contracts and the completion of strategic projects.
The broker mentioned several main challenges that Construction SOE issuers will face in 2025, including tight cash flow, high debt-to-equity ratios, and interest pressure due to large debt burdens.
From an industry perspective, Kiwoom also observed government infrastructure budget cuts, tight project price competition, and declining consumer purchasing power, which further narrows the room for expansion and profitability.
“These challenges make successful restructuring and operational efficiency crucial to maintaining competitiveness,” it concluded.
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