State construction firm PT PP (PTPP) has announced plans to divest two of its infrastructure subsidiaries worth Rp3 trillion (US$182 million), aiming to streamline its business and reduce corporate debt.

The two subsidiaries slated for sale are PT PP Infrastructure, which operates in the clean water supply system sector (SPAM), and PT Celebes Railways Indonesia, which focuses on railway infrastructure.

PT PP President Director, Novel Arsyad, expressed optimism that the divestment of PT PP Infrastructure would be finalized by mid-2025.

"This is part of our program to improve the company's cash flow," Novel said on Wednesday, April 30, 2025.

Corporate Strategy and HCM Director, I Gede Upeksa Negara, cited that the move is part of a broader strategy to concentrate on PT PP’s core business. Assets that are no longer aligned with the company’s main operations will be released.

"This is what we are doing, and the process is already underway. We are also being supported by a financial advisor during the divestment process," Upeksa said.

He added that three potential investors − two foreign and one local − are currently conducting due diligence for acquiring PP Infrastructure. The offering process is expected to begin in May 2025, followed by the signing of a Conditional Sales and Purchase Agreement (CSPA).

Due diligence is also in progress for PT Celebes Railways Indonesia, with one foreign and one local investor evaluating the opportunity.

In addition to these divestments, PT PP plans to sell a partial stake in the Semarang–Demak toll road project to further reduce debt. This sale is scheduled for 2027, after the toll road becomes operational.

"To reduce debt, we will also conduct a rights issue for the Semarang–Demak project," Upeksa noted.

PT PP is also considering selling off unused heavy equipment assets under its subsidiary, PP Presisi. This initiative is part of the company’s efficiency and asset optimization efforts.

According to its financial statements, PT PP reported total liabilities of Rp41.33 trillion by the end of 2024, marking a slight decrease from Rp41.38 trillion at the close of 2023.