Indonesian Construction Companies in Focus: Adhi Karya
Indonesian state-controlled construction company Adhi Karya is facing a number of challenges and therefore CIMB Securities has cut its outlook for Adhi Karya's corporate earnings in the years ahead. These challenges include (1) uncertainty surrounding the financing of the light rail transit (LRT) Jakarta-Bogor-Depok-Bekasi, (2) the possibility of rising losses incurred due to the company's power plant and Residue Fluid Catalytic Cracking (RFCC) projects, and (3) the disappointing number of new contracts so far this year.