Jakarta. Indonesian state-owned construction firm PTPP is stepping up efforts to strengthen its business transformation and financial fundamentals, as it seeks to ensure long-term sustainability amid shifting dynamics in the domestic construction sector.

In line with good corporate governance principles and a commitment to transparent and accountable reporting, the company has refined the presentation of its 2024 financial statements to better reflect its financial position.

The adjustments follow a comprehensive review to ensure compliance with prevailing accounting standards and governance principles, including provisions based on evaluations of claim settlement processes in accordance with contractual mechanisms.

In 2025, PTPP also adopted a more prudent approach by recognizing impairments on certain assets within its subsidiaries. These measures include provisioning for potential losses on receivables and adjustments to inventory values, as part of efforts to enhance asset quality and strengthen risk management.

The company emphasized that these steps reflect prudential measures and governance improvements rather than underlying operational issues.

While the adjustments have weighed on PTPP’s financial performance in the 2025 fiscal year, management said the move forms part of a broader strategy to reinforce the company’s long-term financial resilience.

The initiative is also part of a comprehensive effort to restructure and strengthen PTPP’s financial framework to support sustainable operations and improve future performance.

Corporate Secretary Joko Raharjo said the measures are aligned with the direction of sovereign wealth fund Danantara, which is pursuing a rationalization of state-owned enterprises, including plans to integrate construction firms to enhance capacity and financial stability across the sector.

PTPP is also prioritizing full transparency in its financial disclosures as a key foundation for potential consolidation efforts.

“The restatement and adjustments undertaken by the company are measured steps based on prudential principles to ensure that financial statements fairly reflect the company’s condition and are fully accountable,” Joko said in a statement.

“These are not merely administrative adjustments, but part of a broader effort to strengthen financial fundamentals and improve overall business quality. We believe these steps will provide a solid foundation for healthier and more sustainable growth going forward,” he added.

Looking ahead, PTPP plans to drive performance improvements through a series of strategic initiatives, including focusing on its core construction business while divesting selected assets, strengthening operational cash flow through faster receivables collection, and actively pursuing strategic projects across government, state-owned, and private sectors.

The company also aims to apply stricter risk management in project selection and portfolio management.

PTPP said it remains optimistic that these measures will strengthen its financial position and support sustainable performance growth, while continuing to provide transparent updates in accordance with regulatory requirements.