JAKARTA (TheInsiderStories) – The construction firm, PT Waskita Karya Tbk (IDX: WSKT) announced only divest two toll roads in this year caused the impact of the COVID-19 pandemic. The original plan, the state-owned company wants to divest five toll road assets
The CEO, Destiawan Soewardjono, said in a virtual conference today (10/28), the divestment is part of the issuer funding strategy to maintain its cash flow. He estimated, only the Cibitung – Cilincing toll road and the Bekasi – Cawang – Kampung Melayu (Becakayu)toll road are realized in this year.
The other assets will released through an asset swap scheme with state company, PT Taspen and PT Sarana Multi Infrastruktur. The director, Fery Hendriyanto, added, for Becakayu, Waskita targeting the release 30 percent stake in PT Kresna Kusuma Dyandra Marga for Rp550 billion (US$37.41 million) in the form of a mutual fund or limited participation collective investment contract in mid-November.
Expansion into Southeast Asia
Beside divesting the company’ toll roads, the builder also implemented also looking several projects in the Southeast Asian region, such as the light rapid transit in the Philippines, the construction of the Kuala Lumpur airport in Malaysia, and a mixed-used project in Johor and the renovation project of the Indonesian Embassy in Malaysia.
Waskita estimates that the contribution from the external market is projected to increase from now 30 percent to 37 percent. The issuer also optimistic to reached the new contracts target amounting to Rp27 trillion by the end of 2020. As end of September, the constructor has received a new contract Rp12.2 trillion, which is dominated by infrastructure projects from its subsidiary.
Since last year, the company has entered steel businesses by built steel plant in Cikande Modern Industrial Zones, Serang, Banten, aimed to support the various infrastructure projects undertaken by the company. The steel factory has a total investment of Rp230 billion.
The new plant built by its unit, PT Waskita Karya Infrastructure to meet the needs of a 500 Kilo Volt Ampere transmission project in Sumatra with total tower production reaching 4,000 tons per month.
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