JAKARTA. In its research report, Moody's Investors Service mentioned that the level of liability of six state-owned companies in Indonesia is quite risky. One of those companies is PT Adhi Karya Tbk (ADHI), a construction company.
Moody's said ADHI has a debt to equity ratio (DER) of 137.5%, lower than PT Waskita Karya Tbk (WSKT)'s DER of 359.1%. ADHI's gearing ratio was recorded at 1.6 times.
Corporate Secretary of ADHI, Ki Syahgolang, explained that the condition was still under the covenant of 3.5 times. According to Kiki, ADHI will continue to maintain a healthy debt ratio below the covenant level, with several strategies.
First, monitor receivables regularly so that better operating cash flow can be reached. Second, the company will remain expansive with the addition of new projects, investment plans, and the development of transit-oriented development (TOD) projects.
In the near future, the company will receive Rp 1.2 trillion from PT Kereta Api Indonesia (KAI). At the end of the year, it is also expected that there will be another payment from PT KAI, Syahgolang said as quoted by Kontan.o.id.
Meanwhile, until August 2019, ADHI has succeeded in pocketing new contracts with a total value of Rp 6.8 trillion. The acquisition was only 22.66% of the company's 2019 target of Rp 30 trillion. (AM/AR)