Receive 11 Trillion from Government Capital in 2020, Hutama Karya Accelerate The Development of The Trans-Sumatera Toll

JAKARTA - PT Hutama Karya (Persero) (Hutama Karya) is currently doing its best efforts in carrying out the assignment project mandated by the government namely the construction and development of the Trans Sumatra Toll Road (JTTS) along 2,765 KM stretching from Lampung to Aceh.

JTTS is one of the National Strategic Projects (PSN) whose construction is a priority of the Indonesian government. Previously, the government had agreed to provide an injection in the form of State Capital Participation (PMN) to Hutama Karya in 2020 amounting to Rp 3.5 trillion. However, through his press statement on May 18, 2020, related to the Economic Recovery Program, Minister of Finance Sri Mulyani said that Hutama Karya became one of the State-Owned Enterprises (SOEs) which was included in the priority handling of the impact of the COVID-19 pandemic.

This is based on criteria established by the government namely, influence on the lives of many people, the role of sovereignty carried out by SOEs, exposure to the financial system, and government ownership and total assets owned. Hutama Karya is considered to have reached these criteria so that Hutama Karya plans to again receive a PMN of Rp. 7.5 trillion in 2020. This PMN is in line with Government Regulation No. 23/2020 concerning the National Economic Recovery Program. With the ongoing JTTS project worked on by Hutama Karya, it is hoped that it will help to keep the economy moving around Sumatra. That way, the total PMN that Hutama Karya will receive in 2020 will be 11 trillion rupiahs.

Quoted from medcom.id (14/5), Minister of Finance Sri Mulyani in the Indonesia Moving Forward webinar organized by ID.M explained that the government cannot be alone in restoring the economy. So that it requires support from various sectors, including Hutama Karya as one of the SOEs that is being entrusted to complete the construction of JTTS.

The entire PMN funds received by Hutama Karya will be used by the company to continue the construction of JTTS on several sections including the Pekanbaru - Dumai section with a length of 131 km (2 Trillion), section Sp. Indralaya - Muara Enim along 119 km (3.2 Trillion), Pekanbaru section - Base along 95 km (Rp. 4.3 Trillion), as well as closing financing for completed toll roads, namely the Terbanggi Besar - Baked Pematang - Kayu Agung section along 189 km (Rp. 1.5 trillion).

Senior Executive Vice President (SEVP) Corporate Secretary Hutama Karya, Muhammad Fauzan said the company was very grateful for the support and trust gave by stakeholders in continuing the construction of JTTS. "This will certainly strengthen the company in completing the tasks given by the government, in addition to previously we have succeeded in issuing Global Bonds worth 9 trillion rupiahs," said Fauzan.

This PMN itself is a continuation of the PMN that was received by Hutama Karya in 2015, 2016, and 2019 ago. This PMN is expected to be able to increase business capacity and improve the capital structure and be able to increase the role of SOEs as agents of development so that they can support national priority programs (Nawacita).

Quoted from cnbcindonesia.com in Closing Bell (12/5), Stafsus Minister of State-Owned Enterprises (BUMN) Arya Sinulingga said that currently PMN is needed by several SOE companies considering there are several companies that experience liquidity problems due to the corona pandemic and some have to pay debts that are due so they need an injection of fresh funds.

Until now ± 500 km of toll roads in JTTS have been built with 368 km of fully operational toll roads. Some of these toll roads include the Bakauheni - Terbanggi Besar (Bacter) Toll Road along the 140 km, the Terbanggi - Besar Toll - Baked Pematang - Kayu Agung (Terpeka) along 189 km, the Palembang - Indralaya (Palindra) toll road along 22 km, and the Medan Binjai Toll Road (Medbin) sections 2 and 3 along 17 km.

As for 2020, Hutama Karya is targeting the completion of the JTTS construction to continue for several priority sections including the Pekanbaru - Dumai toll road along 131 km where construction progress has reached 97% on average, followed by Sigli - Banda Aceh toll road section 4 Indrapuri - Blang Bintang along 13.5 km with construction progress has reached 99%, and finally, the Medan - Binjai section 1 Tanjung Mulia - Helvetia along 6 km is targeted to be completed in the middle of the coming year.

SEVP of Corporate Secretary
PT Hutama Karya (Persero)
Muhammad Fauzan

Media Inquiry:
Diamond Zania
Vice President of Corporate Communication
PT Hutama Karya (Persero)
Mobile Number: 08121160408

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