JAKARTA. PT Medco Power Indonesia, a subsidiary of PT Medco Energi Internasional Tbk (MEDC), booked a net profit of Rp 123.17 billion in 2019, 40.86% lower than its record in 2018. The decline was mainly caused by the increase in cost of revenue, a decrease in the value of concession assets, and tax arrears recorded in some of its subsidiaries.
In a financial report published on Wednesday (2/6), MEDP management mentioned that its cost of revenue rose by 21.98% to Rp 2.4 trillion. Meanwhile, in terms of revenue, one of the electricity suppliers for PT Perusahaan Listrik Negara (Persero) or PLN, experienced growth of 13.51% year on year (YoY) to Rp 3.95 trillion.
The increase in cost of revenue was partly caused by the construction cost for the projects currently being undertaken by Medco Power Indonesia, including the construction of a power plant in Riau, with a contract value of Rp1.08 trillion.
Medco Power Indonesia also mentioned that its other expenses rose by 235.36% to Rp 257.16 billion, due to a decline in the value of the company's concession financial assets to 132.24 billion, the initial development expense of the existing projects of Rp 21.43 billion, a tax penalty of Rp 2.75 billion, and others of Rp 6.49 billion.
Meanwhile, Medco Power Indonesia's income tax expense by rose 222.63% YoY to Rp158.09 billion, due to the tax burden of the company and its subsidiaries from 2017 to 2018. (KR/AR)