State firm, PT Wijaya Karya Tbk (IDX: WIKA) formed a joint venture with PT Jaya Konstruksi Manggala Pratama Tbk (IDX: JKON) and PT Tirta Gemah Ripah to develop drinking water project in West Java - Photo by Public Works and Housing Ministry Office

JAKARTA (TheInsiderStories) –  State firm, PT Wijaya Karya Tbk (IDX: WIKA) formed a joint venture company (JVC) with PT Jaya Konstruksi Manggala Pratama Tbk (IDX: JKON) and PT Tirta Gemah Ripah to develop drinking water project in West Java, the management announced today. The Jatiluhur Regional Drinking Water Supply System is estimating need an investment values of Rp1.67 trillion (US$118.44 million).

Based on the official statement, the joint venture was formed on Jan. 15 with joint venture label, PT WIKA Tirta Jaya Jatiluhur. The builder has a 30 percent shares, Jaya Konstruksi 60 percent, and 10 percent owned by Tirta Gemah Ripa. The consortium has officially won the auction by the government with a Public Private Partnerships agreement with 30 years period.

In this year, Wijaya Karya plans to spend Rp3.05 trillion for the existing projects and capital injection to its units. The number increased by 27.3 percent when compared to the last year amounting to Rp2.39 trillion.

The company will allocated Rp119 billion of the funds for existing projects, Rp2.13 trillion for capital injections, and Rp800.82 billion for expansion. Part of the funds also use to support the ongoing projects like the Kunciran – Cengkareng toll road, the Balikpapan – Samarinda toll road, and the Semarang Demak toll road. Other projects to completed in this year are power plants.

He also said, that Wijaya Karya is planning to divest the Container Terminal in Belawan, North Sumatra. The builder owned 15 percent at the portfolios. As for toll road assets, the divestment plan will be carried out after the construction is complete.

Now, the publicly listed firm, in the process to issues Rupiah bond and SUKUK up to Rp2 trillion to refinances its Komodo Bond maturing on Jan. 31, 2021. The conventional bond worth of Rp1.5 trillion and SUKUK around Rp500 billion. The notes divided into three series. Series A have tenure three years, Series B five years, and series C with term seven years.

Wijaya Karya has appointed PT BNI Sekuritas, PT BRI Sekuritas, PT Mandiri Sekuritas, and PT RHB Sekuritas Indonesia as joint lead underwriters. The bond and SUKUK has received a single A rating from PT Pemeringkat Efek Indonesia.

Currently, there are several overseas projects that have just been worked on by the constructor in the Philippines, Taiwan, Algeria and the Democratic Republic of Congo with total values over than Rp2 trillion. In addition, the builder is also received a renovation project for the Nigerian Presidential Palace.

In Indonesia, Wijaya Karya has been assigned by the government to build several national strategic infrastructure projects such as 16 dams, toll roads for the Serang – Panimbang (Banten) section and Cengkareng – Kunciran toll road. Others are the Fast Train project, Mempawah port, and power plant projects.

During 2020, the management estimates that the net profit around Rp208 billion and in 2021 is estimating to reached Rp1.05 trillion. In the same year, the issuer obtained a new contract value of Rp23 trillion, most of which was still contributed by infrastructure and building projects. The realization was above the target of Rp21.3 trillion.

For 2021, the company targets the acquisition of new contracts to nearly double to Rp40.12 trillion. WIKA also targeting the order book value to be Rp115.02 trillion in this year.

US$1: Rp14,100

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