Jakarta. State-controlled construction firm Pembangunan Perumahan, or PP, booked a 32.6 percent increase in net income in the first quarter this year on the back of steady revenue gains from government-backed infrastructure projects.
"We are currently constructing several multiyear infrastructure projects backed by the government, as well as other projects handled by our subsidiaries," PP president director Tumiyana said in a filing to the Indonesia Stock Exchange (IDX) on Wednesday (03/05).
"Those projects will massively contribute to our financial performance in upcoming quarters."
The firm booked Rp 130 billion ($9.76 million) in net income between January and March this year, compared to Rp 98 billion in the corresponding period last year.
The company's revenue also rose 12.7 percent to Rp 2.92 trillion.
As of April, the company registered Rp 6.67 trillion in new contracts for construction-related work, representing a 38 percent surge from Rp 4.83 trillion in the same period last year.
PP booked a total Rp 71.5 trillion in outstanding contracts last year, comprising Rp 32.6 trillion in new contracts and Rp 39 trillion in contracts carried over from the year prior.
The company will look to secure Rp 40 trillion in new contracts by the end of 2017.
"We are optimistic about achieving our targets," Tumiyana said.
PP is among several construction firms developing infrastructure projects endorsed by the government. PP's state-backed competitors include Adhi Karya, Waskita Karya, and Wijaya Karya.
The company won the rights to a road reconstruction project totaling Rp 1.19 trillion and which connects the Central Java districts of Klaten and Banyumas.
PP is also managing a toll road project connecting Cileunyi, Sumedang and Dawuan in West Java, worth Rp 1.5 trillion.
The company is expected to help state electricity company Perusahaan Listrik Negara (PLN) develop a 2 x 140 megawatt gas turbine power plant worth Rp 1.7 trillion in Bangkanai in the Central Kalimantan district of North Barito.
PP also secured a new contract to develop a 72 megawatt wind power plant in Jeneponto, South Sulawesi.