JAKARTA. The total value of new contracts obtained by PT Nusa Raya Cipta (NRC) dropped by more than 60% YoY, which dragged down the income of PT Surya Semesta Internusa Tbk (SSIA) by 13%. NRC is a subsidiary of SSIA.
In the first quarter (Q1) of 2020, NRC's new contract value fell by 60.6% year on year (YoY) to Rp 415.3 billion, from Rp 1.05 trillion recorded in Q1 2019.
The COVID-19 outbreak had an impact on the company's business in general. At present, around 30% of NRC projects are postponed, while the remaining 70% still runs normally, said Erlin Budiman, Investor Relations of PT Surya Semesta Internusa Tbk, as quoted from KONTAN last week.
As a result, Surya Semesta has to cut its new contract target for 2020. The construction company revised its new contract target from Rp 3.5 trillion to Rp 2 trillion. (AM/AR)