PTPP Strengthens Financial Fundamentals through Transformation and Prudence Principles
PT PP (Persero) Tbk (PTPP) continues to strengthen its business transformation efforts and financial foundations as part of initiatives to maintain sustainable long-term performance amid the dynamics of the national construction industry.
In line with good corporate governance principles and the drive to present transparent, accountable financial reports that fairly reflect the company’s condition, the company is refining the presentation of its 2024 fiscal year financial statements.
This step is based on a comprehensive review to ensure compliance with applicable accounting standards and Good Corporate Governance principles, including provisioning based on evaluations of claim settlement processes in accordance with contractual mechanisms.
In addition, in 2025, the company is taking prudent steps through the recognition of impairment on certain assets in subsidiaries, including the formation of allowance for impairment losses on receivables and adjustments to inventory values, as part of strengthening asset quality and applying more prudent risk management.
These steps are part of the implementation of prudence principles, strengthening corporate governance, and adjustments to industry dynamics. This does not reflect any issues in the company’s operational management.
The policy exerts pressure on the company’s consolidated financial performance for the 2025 reporting period. However, management emphasises that this step is part of the company’s strategy to strengthen its financial fundamentals in the long term. This is also part of the overall process of restructuring and strengthening the company’s financial structure to ensure sustainable business and improve future performance quality.
PTPP Corporate Secretary Joko Raharjo stated that this step aligns with Danantara’s direction in rationalising the number of SOEs, including initiatives to integrate Construction SOEs to strengthen business capacity and enhance the financial stability of the national construction industry. In addition, the company prioritises full transparency principles in financial reporting as an important foundation for conducting such business consolidation.
“The restatement and adjustments made by the company are measured steps based on prudence principles to ensure that the financial reports reflect a fair and accountable condition. This step is not merely an administrative adjustment 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, the company will consistently drive performance improvements through several measured strategic steps, including:
With these steps, the company is optimistic about strengthening its financial position and improving performance sustainably in the future. The company will continue to provide transparent information updates in accordance with applicable regulations.