Soaring, WIKA's New Contract Reaches IDR 12.4 Trillion
6/19/2022
PT Wijaya Karya Tbk (WIKA) managed to book a new contract value of Rp 12.4 trillion until May 2022, an increase of 56.76% compared to the same period last year.
Corporate Secretary of Wijaya Karya or Wika Mahendra Vijaya said that the acquisition of the new contract value came from infrastructure and building projects worth Rp. 7.8 trillion, construction support energy of Rp. 2.3 trillion, engineering production EPC and construction ( ) of Rp. 1, 9 trillion, as well as realty and property of Rp 400 billion.
"Wika targets a new contract until the end of 2022 of IDR 42.57 trillion. As of May, the realization has reached 29.12%," Mahendra told Investor Daily recently.
As for the composition of the acquisition of new contracts this year, the company targets that 67 percent will come from the parent and 33 percent from the subsidiary.
Separately, President Director of Wika Agung Budi Waskito also said that the company's business portfolio is 30 percent working on government projects, then 30 percent from projects initiated by BUMN and 20-30 percent from private projects.
With this composition, said Agung, the fate of Wika is largely determined by the government, such as the PUPR Ministry and the Transportation Ministry. Moreover, when the pandemic began to hit in early 2020 until the end of 2021, where many BUMN and private projects were under pressure, the government through its projects really helped Wika's business.
"However, entering 2022 the situation will return to normal. We are starting to revive projects that had been delayed so that they also help the regional economy,” explained Agung at the Connectivity and Role of Infrastructure in Encouraging Economic Recovery, recently.
Once the Covid-19 pandemic is declared over, Wika will carry out several restorations, such as continuing to invest in projects that had been hampered, such as the Serang-Panimbang toll road, which was stalled for two years, and is now starting to be accelerated.
In addition, the company is accelerating investments in the Semarang-Demak, Trans Sumatra, and Cisumdawu toll roads, which are targeted for completion this year. "In Jakarta, we are also working on the Tanjung Priok to Pluit toll road," said Agung.
Furthermore, Wika also began to continue investing in other disrupted projects, namely the Jatiluhur SPAM project and several power generation projects. According to Agung, infrastructure development has experienced extraordinary growth. The projects that BUMN Karya works on in an average year can generate Rp 100 trillion.
"We also support G20 supporting projects because the projects are quite numerous and large, including the revitalization of Taman Mini, Halim Airport, VVIP Terminal of I Gusti Ngurah Rai Airport, Bali, as well as Road and Bridge Improvement and Construction in the Labuan Bajo area. This is enough to stimulate the local economy,” said Agung.
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Wika has obtained an A rating with stable prospects from PT Pemeringkat Efek Indonesia (Pefindo). Pefindo also affirmed the ratings for the sustainable bonds I in 2020 and the sustainable bonds II in 2021 with a rating of A, as well as the sustainable sukuk mudharabah I in 2020 and the sustainable sukuk mudharabah II in 2021 with a rating of A (sy).
The rating reflects Pefindo's optimism towards Wika's performance as a strong construction company in the national industry and is supported by strong financial flexibility and diversified revenue sources.
One thing that is enough to increase this optimism is the growth in the acquisition of new contracts by 56.76% (Rp 12.4 trillion year to date / YTD) compared to the same period last year of Rp. 7.9 trillion.
