The company's history rooted back during the Dutch colonial era under the name Architecten-Ingenieur-en Aannemersbedrijf Associatie Selle en de Bruyn, Reyerse en de Vries N.V. (NV Associatie). In 1958, the Indonesian government took over the company and two years later, the Ministry of Public Works and Labor officially changed its name into Adhi Karya. The company, which went public in 2004, focuses on construction, EPC (engineering, procurement and construction), property, real estate, infrastructure investments, infrastructure implementation, train facility and the procurement of hotel goods and services.

Eying on several projects

Adhi Karya raised IDR 2.6 trillion in 2022's rights issue. The company spent IDR 600 billion to complete toll road projects on the Yogyakarta-Surakarta and Yogyakarta-Bawen sections as well as the drinking water supply system in Karian-Serpong in South Tangerang, Corporate Secretary Farid Budiyanto explained.

He said that the remaining IDR 2 trillion from the rights issue funds had not been utilized, as the disbursement was in accordance with project developments. "So, we are preparing the 2023 Capex from the proceeds from the rights issue funds. This is in accordance with the existing prospectus," he said recently, as quoted by investor.id.

Budiyanto added that the remaining rights issue would be used by the company's 2024 Capex since the company still had ongoing projects. As of now, the company had yet planned to launch a corporate action or ask for a state capital injection (PMN) again. The company has focused on its internal cash including the usage of loan facility from banks.

"We will not add any external funds. Instead, we will manage the existing funds," he said.

Budiyanto said Adhi Karya would be more selective on projects in the future to avoid too many investments with high interest, which could put a strain on the company's finances. Also, the company will maximize receivable assets so they can be collected.

"This is our concern, especially for big projects such as the Sigli-Banda Aceh toll road project [in Aceh province] and the LRT project, which we seriously monitor the administration," he added.

Risks in Adhi Karya's business

• High interest investments: The company is currently avoiding high interests investments to avoid a strain in the company's budget. It will be more selective in the future to choose projects.

• Receivable problems: There are risks in the company's receivable, as the billing process takes a lot of time. Due to this factor, the company will try to maximize its receivables so it can be billed.