PT PP Strengthens Financial Foundations to Ensure Long-Term Sustainability
PT PP (Persero) Tbk (PTPP) continues to strengthen its business transformation and the company’s financial foundations. This is to maintain long-term performance sustainability amid the dynamics of the national construction industry.
In line with the implementation of good corporate governance, PTPP is refining the presentation of its 2024 fiscal year financial statements.
This step is taken based on a comprehensive review to ensure the financial statements remain transparent, accountable, and compliant with applicable accounting standards, including provisioning based on evaluations of claim settlement processes in accordance with contractual mechanisms.
In 2025, the company will also take precautionary measures through the recognition of impairment on certain assets in subsidiaries. In addition, PTPP is establishing an allowance for impairment losses on receivables (CKPN) and adjusting inventory values as part of strengthening asset quality and implementing more prudent risk management.
PTPP emphasises that these steps are part of the prudence principle, strengthening corporate governance, and adjustments to industry dynamics, and do not reflect any issues in the company’s operational management.
This policy does indeed put pressure on the consolidated financial performance in the 2025 reporting period. However, management states that these steps are part of a strategy to strengthen the company’s financial fundamentals in the long term.
Moreover, these efforts are also described as part of a comprehensive restructuring and strengthening of the company’s financial structure to maintain business sustainability and improve future performance quality.
PTPP Corporate Secretary Joko Raharjo said this step aligns with Danantara’s direction in rationalising the number of SOEs, including initiatives for the integration of construction SOEs to strengthen business capacity and enhance the financial stability of the national construction industry.
According to him, the company also prioritises full transparency in financial reporting as an important foundation in that consolidation process.
“The restatement and adjustments made by the Company are measured steps based on the prudence principle to ensure the financial statements reflect a fair position and are accountable,” said Joko Raharjo in a written statement on Sunday (5/4/2026).
Joko added that these steps are not merely administrative adjustments but part of efforts to strengthen financial fundamentals and comprehensively improve the company’s business quality.
“We believe this step will become an important foundation for PTPP to grow more healthily and sustainably in the future,” said Joko.
Going forward, PTPP will continue to drive performance improvements through several strategic steps, including focusing on core construction business and divesting certain assets, strengthening operational cash flow through accelerating the collection of trade receivables, and actively pursuing strategic project opportunities from the government, SOEs, or the private sector.
In addition, the company reaffirms its commitment to applying prudence principles in project selection and portfolio management while prioritising risk management.
Through these steps, PTPP is optimistic about strengthening its financial position and improving performance sustainably, while continuing to communicate developments transparently in accordance with applicable regulations.