PT Wijaya Karya Tbk (Persero).

JAKARTA (TheInsiderStories) – Indonesian government will set up state-owned Housing and Infrastructure holding company  (HoldCo) in mid-February, said the official government today (01/28).

Previously, the minister Rini Soemarno targeted the unfinished-holding companies such as infrastructure, insurance, housing, industrial estate, port, defense, pharmacy, cement, and financial sector will be finished in March of 2019. Her deputy Aloysius Kiik Ro said that the process of forming the HoldCo now waiting for finance ministry and president approval.

Followed the planned, today state-owned developer PT Wijaya Karya Tbk (IDX: WIKA) raised the shareholders approval to scrap state-owned enterprise status from the company. The status removal is a part of housings HoldCo establishment.

Wijaya Karya along with some other state-owned enterprises will be under housing developer, PT Perum Perumnas. Besides WIKA, the HoldCo has other subsidiaries like PT PP Tbk (IDX: PTPP), PT Amarta Karya, PT Virama Karya, PT Indah Karya, and PT Bina Karya.

CEO of WIKA Tumiyana believed that business development in housing sectors will give a big impact for the company. Moreover, people’ housings needs that keep increasing must be balanced with residential availability.

He also expected that being in housings and area development holding can create a bigger room for Wijaya Karya to develop in transit oriented development (TOD) and buildings business.

“Wijaya Karya is now strengthened by integrated business lines from upstream to downstream by involving the subsidiaries. So it can give bigger benefit in the consolidation,” said Tumiyana.

He added, that synergy between SOEs in the housings and area development will add capability for fulfilling needs of presenting good-quality housings with affordable price. On the other hand, property price that keeps increasing will be very benefiting company’s financial structure in the future.

While other construction and developer, PT Adhi Karya Tbk (ADHI) and PT Waskita Karya Tbk (IDX: WSKT) will be under infrastructure holding, along with PT Jasa Marga Tbk (IDX: JSMR), PT Yodya Karya, and PT Indra Karya. The infrastructure HoldCo will be led by PT Hutama Karya.

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