Take Note! This is PTPP's Strategy to Strengthen Financial Fundamentals
Jakarta, CNBC Indonesia - PT PP (Persero) Tbk (PTPP) continues to strengthen its business transformation initiatives and financial foundations as part of efforts to maintain long-term performance sustainability 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, PTPP has refined the presentation of its 2024 fiscal year financial statements.
This step was taken 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.
Additionally, in 2025, the company is taking precautionary measures 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. They do 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. Nevertheless, management emphasises that this is part of the company’s strategy to strengthen its financial fundamentals in the long term.
This step is also part of the overall restructuring and strengthening of the company’s financial structure to ensure business continuity and improve future performance quality.
PTPP Corporate Secretary Joko Raharjo stated that this aligns with Danantara’s direction in rationalising the number of SOEs, including initiatives to integrate construction SOEs to strengthen business capacity and enhance financial stability in the national construction industry.
Additionally, the company prioritises full transparency 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 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 serve as an important foundation for PTPP to grow more healthily and sustainably in the future,” Joko said in an official statement on Thursday (2/4/2026).
Going forward, the company will consistently drive performance improvements through several measured strategic steps, including:
Focusing on core construction business and divesting certain assets;
Strengthening operational cash flow through accelerating the collection of trade receivables to maintain cash flow;
Actively participating in various strategic project opportunities, including government, SOE, and promising private sector projects;
Applying prudence principles in project selection and portfolio management with an emphasis on risk management.
With these steps, the company is optimistic about strengthening its financial position and sustainably improving performance in the future. The company will continue to provide transparent information updates in accordance with applicable regulations.