Adhi Karya: Investment needed for LRT project doubles due to longer track.
The investment needed for the LRT project phase 1 has been doubled to Rp34.0t from the initially planned Rp17.0t due to the longer track. Based on the Presidential Regulation, the route for the 84km phase 1 has been stretched out from the original plans of 40km. Hence, Adhi Karya, as the lead contractor, plans to draw bank loans gradually, and use the funds for working capital on the project. There are no further details regarding the extended track. ADHI is targeting new contracts of Rp25.1t in 2016, up by 34.2% yoy from the Rp18.7t targeted in 2015. Revenues in 2016 are targeted to come in at Rp20t (up 44.9% yoy) while net income should hit Rp750b (up 48.6% yoy).
