Housing Development Optimistic to Achieve Targeted Net Profit 2017

INDUSTRY.co.id - Jakarta - The management of PT Pembangunan Perumahan Tbk (PTPP) is optimistic to reach the target of net profit of Rp7.7 trillion in 2017, although the government banned the construction company to work on projects worth under Rp200 billion.

"Although the government prohibits SOEs to work on projects under Rp 200 billion, we are optimistic to realize the 2017 net profit target," said Nugroho Agung Sanyoto, Corporate Secretary of PTPP, in Jakarta, Monday (30/10/2017).

Nugroho said, until the end of quarter III-2017, PTPP won a new contract worth Rp31, 9 trillion. Nevertheless, these contracts are not projects in the regions of the Level I and Level II APBD.

Housing Development until the end of 2017 is targeting a new contract worth Rp40, 6 trillion.

Nugroho explained, since the Government Regulation that prohibits SOEs working on projects under Rp200 billion enacted, Housing Development has not taken a small value project.

"In fact, since late 2016, we have not taken such small projects. We only take the stadium construction project in Papua, because the project is big and short term, "said Nugroho.

Nugroho revealed, in the future, various SOE subsidiaries are also not allowed to work on various small value projects in the region. Because there will be a holding scheme that streamlines subsidiaries in similar businesses.

Nugroho also said, PTPP as of September 2017 recorded revenue of Rp13, 7 trillion, up 27% over the same period in 2016. Meanwhile, net profit grew 70% to Rp1, 1 trillion.

"The profit is equal to the realization of profit in 2016. Target revenue of 2017 amounted to Rp25 trillion," he added.

Thus, according to Nugroho, the company believes it will be able to exceed various financial performance targets in 2017. "PTPP new contract has also been realized 79%. The realization of revenue by 55% and net income reached 65%, "said Nugroho. (Abraham Sihombing)