PTPP to Raise Rp 1.41 Trillion from 81% Divestment of PP Infrastruktur
Key Takeaways
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JAKARTA, Investortrust.id — State-owned construction company PT PP Tbk, or PTPP, plans to divest 81% of its shares in subsidiary PT PP Infrastruktur for a total value of Rp 1.41 trillion. The move aligns with the company’s long-term strategy to “return to core” by focusing on its main business segments in building construction, infrastructure, and engineering, procurement, and construction (EPC).
In its official filing to the Indonesia Stock Exchange (BEI) on Tuesday, management stated that the divestment is part of a broader financial recovery and business sustainability program. “This transaction represents a portfolio realignment that allows PTPP to concentrate resources on its core operations,” the company said.
Proceeds from the sale will be used to strengthen the company’s cash flow and expand its main business activities. PP Infrastruktur remains a profitable subsidiary, recording a net income of Rp 71.16 billion in the first half of 2025. The divestment will proceed after approval from an extraordinary shareholders’ meeting (RUPSLB) scheduled for Thursday, Dec 18, 2025.
According to the company’s disclosure, the buyer plans to acquire 81% of PP Infrastruktur’s shares from PTPP, reducing the parent company’s ownership from 99.15% to 18.15%. The transaction value is based on an acquisition offer of Rp 1.41 trillion.
This marks one of PTPP’s key portfolio streamlining steps as the firm seeks to optimize capital and improve financial ratios amid a challenging construction market.
Strategic Projects and Financial Performance
Beyond divestment, PTPP continues to pursue major state infrastructure projects. Recently, the company secured a Rp 1.947 trillion contract (including VAT) to build roads within the Judicial Complex of Indonesia’s new capital city, IKN Nusantara. The project will be executed through a Joint Operation (JO) scheme, with PTPP holding a 25% stake. The construction period runs 793 calendar days, from Oct 31, 2025, to Jan 1, 2027.
However, PTPP’s latest financial results show a sharp decline in performance. Revenue dropped from Rp 14 trillion to Rp 10.73 trillion, while pre-tax profit fell from Rp 100.52 billion to Rp 45.84 billion. Net profit attributable to shareholders plunged from Rp 267.28 billion to Rp 5.55 billion, reflecting continued pressure on margins and project completion timelines.
Management expects the divestment to provide fresh liquidity that will support ongoing projects and improve balance-sheet resilience. Analysts view the transaction as part of a broader shift among state-owned builders toward asset optimization and capital discipline.