Fitch Ratings has downgraded Indonesian government-owned construction company PT Wijaya Karya Tbk' (IDX: WIKA) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) to 'BB-', from 'BB'- Photo by the Company

JAKARTA (TheInsiderStories) – Indonesia’ construction firm, PT Wijaya Karya Tbk (IDX: WIKA) eyes an airport project in Taiwan with values around US$700 million, local media reported on Friday (10/18). The project need costs around Rp20 trillion ($49.64 billion).

The company’ spokesman Mahendra Vijaya said, the tender process is expected to be carried out in December 2019. Beside airport project, the builder also looking other projects like bridge and station.

Beside Taiwan, Wijaya Karya also expanded to other countries such as Malaysia, Philippines, and Uni Emirate Arab. While in Africa, the issuer preparing to build around $40 million liquid and bulk port terminal facilities in Zanzibar, Tanzania. The company also received an offer to work on a mining project with four state-owned enterprises in Madagascar.

WIKA also aimed to build of $250 million integrated business area in Senegal and of $66 million apartment building project in Ivory Coast. State Own Enterprises (SOE) ministry also offered various cooperation between the two countries, such as transportation sector, airport management, energy, pharmaceutical industry, rail infrastructure, ports and plantations.

Furthermore, Wijaya Karya targeted to handle projects with total values Rp20 trillion in Africa. Currently, the state-owned company has projects with total value Rp7.6 trillion

In the meeting with Uganda’ Prime Minister Kirunda Muwabe, coordinating minister for maritime affairs, Luhut Panjaitan, said the country interest to cooperate with the company for railway jobs with an estimated path length reaches 350 kilometers.

Similar interests, also came from Angola who plans to build a track or railway track along the 400 km. Then Zimbabwe with train tracks along the 98 km and Somalia for the construction of social housing as being worked on by Wijaya Karya in Algeria.

“We will soon further explore and assess the feasibility of the project plan of railway infrastructure in Africa, including working with PT INKA (Industri Kereta Api) and PT LEN,” said the CEO Tumiyana recently.

The third parties has formed Indonesian Railway Development Incorporated for Africa (IRDIA) consortium to capture the investment opportunity in African countries.

In the country, the company is targeting the acquisition of new contracts from a number of rail-based mass transportation projects such as mass rapid transit, light rail transit and loop line, toll road projects, buildings, electricity and energy security such as tank farms.

Until September 2019, Wijaya Karya has pocketed new contract of Rp25.7 trillion. Of this value, as much as 85.7 percent of the company’ new contracts came from the SOE and private sectors, 9.8 percent came from overseas projects and 4.5 percent came from the government.

For this year, the publicly listed company prepared capital expenditure Rp20 trillion and will continue to rise every year. Tumiyana viewed that WIKA actually, now coined the excellent capacity in terms of industries, steel, concrete, and asphalt which then support the construction and infrastructure as its main business.

US$1: Rp14,100

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