Indonesia's construction industry, which accounts for about ten percent of the country's gross domestic product (GDP), is experiencing turbulent times as the sector is impacted upon by three issues, namely higher minimum wages, higher subsidized fuel prices as well as the depreciating rupiah (against the US dollar). Concerns have arisen that a number of projects cannot be finished due to these issues. Moreover, companies may feel forced to dimiss workers in order to keep a healthy financial balance sheet.
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26 October 2021 (closed)
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Below is a list with tagged columns and company profiles.
Today's Headlines Building Construction
Pembangunan Perumahan (better known as PP) is a government-controlled construction and investment company in Indonesia. The company's lines of businesses consist of construction services in building and infrastructure, property, engineering, procurement and construction (EPC), as well as investment. PP was the second-largest company in terms of largest net income in Semester I-2013. Being a state-controlled entity, it benefits from the government's increased focus on infrastructure development.
Nine Indonesian construction companies that have released their financial results over the first six months of 2013 show a combined net profit of 849 billion (USD $83.2 million). State-controlled Wijaya Karya (Wika) still leads the ranking in terms of net profit. Interestingly enough, another state-controlled company, Adhi Karya, posted the largest YoY percentage growth in net profit (135.6 percent). Lastly, state-controlled Pembangunan Perumahan is second-largest company in terms of largest net income in Semester I-2013.
Wijaya Karya (Wika) is one of Indonesia's construction companies. The company is involved in engineering and construction work in both Indonesia and abroad. Its businesses include civil engineering, building construction, and construction of industrial plants as well as energy facilities. Being a state-controlled company, Wika has a close connection to the government and as such is one of the first choices to participate in government infrastructure projects. Shares of Wika have grown over 37 percent in 2012.
Indonesia Investments has updated the financial highlights of state-controlled enterprise Adhi Karya (ADHI). The company is engaged in construction services, infrastructure development, property, real estate and engineering, and procurement & construction. Its infrastructure projects include roads, bridges, irrigation, power plants and ports, while its building projects include high rise buildings, hotels, hospitals and schools. Shares and net income of the company have surged in 2012 amid Indonesia's booming property sector.
PT Wijaya Karya Tbk, a state-controlled engineering and construction company that is better known to the general public as Wika, posted net profit of IDR 505.12 billion (US $52.07 million) in 2012, a 29.20 percent increase compared to the previous year. Net profit per share rose from IDR 60,59 to IDR 76,01 per share. According to the financial report that was released today, the growth in net profit was mainly due to a 26.79 percent increase in sales.
Latest Columns Building Construction
State-owned electricity provider Perusahaan Listrik Negara (PLN) stated that consumption of electricity in Indonesia grew 7.2 percent to 90,48 terawatt hour (twh) in the first six months of 2013 compared to the same period last year. Head of PLN's Commercial Division, Benny Marbun, explained that Indonesia's industrial sector particularly consumed more electricity. Although industrial customers of PLN only grew by 4.5 percent in Semester 1-2013 (YoY), industrial electricity consumption grew 8.3 percent (YoY).