JAKARTA. PT Adhi Karya (Persero) Tbk's (ADHI) currently has a negative cashflow due to the Jabodebek Light Rail Transit (LRT) project, one of the company's primary projects.
Adhi Karya CFO Enthus Asnawi added that the company has spent Rp 14 trillion for the LRT Jabodebek development, but as of Wednesday (21/8) it has only received a net return of Rp 7.1 trillion.
According to Mr Asnawi, the company is currently processing the disbursement of Rp 3.1 trillion, which is expected to be completed by the end of the year. "There is a significant invoice that we're processing with KAI (PT Kereta Api Indonesia) and the Ministry of Transportation," he said. This, he added, lowered the company's cashflow in the first half of 2019.
According to the company's financial statements, the net cashflow used for operational activities was minus Rp 2.52 trillion from Rp 330.83 billion in the same periodo last year.
As well as the LRT projects, Adhi Karya's negative cashflow was also triggered by its turnkey proojects. A contractor pre-financing (CPF) turnkey project is a scheme in which the payment of a project is given to the project's developer or owner after its completion, such as the Sigli toll road project in Aceh. (AM/MS)