State-owned enterprises in construction: WIKA focuses on asset divestment
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - BUMN Karya: WIKA fokus divestasi aset
29 November 2024
By Dionisio Damara Tonce
Bisnis, Jakarta – The state-owned contractor PT Wijaya Karya (Persero) Tbk (WIKA) plans to continue selling several investment assets in the toll road sector and water infrastructure projects to strengthen the company's fundamentals.
WIKA Corporate Secretary Mahendra Vijaya stated that the company plans to divest assets with minority ownership, including the Balikpapan-Samarinda (Balsam) Toll Road and the Soreang-Pasirkoja (Soroja) Toll Road.
"The projects have already been completed, and we are now focusing on their divestment. For instance, there are several toll roads where WIKA holds a minority stake," he said during a public expose on Thursday (28/11).
In addition, he mentioned that the company also plans to divest assets from the Jatiluhur Drinking Water Supply System (SPAM) project in East Bekasi, West Java, where WIKA holds an 88.38% stake.
"We will see the results [of the divestment], which might be completed by the end of this year or the first quarter of 2025," Mahendra said.
In the coming years, this state-owned construction enterprise will not pursue business expansion and will instead focus solely on its core operations. This approach is expected to enhance liquidity and cash flow in the future.
By the third quarter of 2024, WIKA achieved a net profit of Rp741.43 billion, marking a significant turnaround from the previous year's net loss of Rp5.84 trillion.
The increase in net profit occurred despite a 16.78% decline in revenue year-on-year, which fell to Rp12.54 trillion from January to September 2024. This decline was mainly due to the infrastructure and buildings segment, which recorded revenue of Rp6.01 trillion, a decrease of 25.67% year-on-year.
The drop in WIKA's revenue was also accompanied by a reduction in the cost of revenue, which fell from Rp13.86 trillion to Rp11.48 trillion. As a result, the company recorded a gross profit of Rp1.06 trillion, a decrease of 12.71% year-on-year.
However, the decline in gross profit was offset by other income, which amounted to Rp5.25 trillion. The majority of this came from restructuring gains, valued at Rp4.48 trillion.
Contact us
