JAKARTA. PT PP (Persero) Tbk (PTPP) sold 14% of PT Citra Karya Jabar Tol (CKJT) shares to PT Brantas Abipraya (Persero) for Rp 50.25 billion.
Agus Purbianto, Director of Finance and Risk Management of PTPP, said that CKJT is a subsidiary of the company which holds the concession rights for the 61.6 km Cileunyi-Sumedang-Dawuan (Cisumdawu) toll road, with a concession period of 40 years. PTPP divested CKJT shares because the rate of return on the investment is considered quite unstable.
"The company believes that a restructuring program (utilization of idle fixed assets) is needed that will streamline our assets and increase profit," said Purbianto through a disclosure published on the Indonesia Stock Exchange's website.
Purbianto added that it was an affiliate transaction, because PTPP and Brantas Abipraya had the same shareholder. As of 2019, the Indonesian government controlled 51% of PTPP shares and 100% of Brantas Abipraya shares. (KR/AR)