The state construction company, PT Wijaya Karya Tbk (IDX: WIKA) has repaid its Komodo Bond with a principal values of Rp5.4 trillion (US$386 million) - Photo by the Company

JAKARTA (TheInsiderStories) – The construction firm, PT Wijaya Karya Tbk (IDX: WIKA) plans to spend Rp3.05 trillion (US$216.31 million) in 2021, said the spokesman yesterday. This number increased 27.3 percent when compared to the last year amounting to Rp2.39 trillion.

In detail, the spokesman Mahendra Vijaya, conveyed, the company will allocated Rp119 billion for existing projects, Rp2.13 trillion for capital injections of its units, and Rp800.82 billion for expansion. He explained part of the funds 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.

While, its subsidiary PT Wika Realty, plans to take the floor on the Indonesia Stock Exchange in 2022, after the process of hospitality holding company done. The unit was appointed by the state own enterprises ministry as the anchor hotel chain owned by the government and managed around 22 hotels owned by four other state firms, such as PT Garuda Indonesia Tbk (IDX: GIAA), PT Hotel Indonesia Natour, PT Pertamina, PT Pegadaian, and WIKA.

In this holding process, Wijaya Karya will maintain its ownership in the range of 70 – 75 percent. Then, after the IPO, the parent still maintains majority ownership around 55 percent. Based on the planned, the revenues from the new holding will contributes around 10 – 15 percent from previous only 5 – 6 percent of the total income.

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 and the Democratic Republic of Congo with total values over than Rp2 trillion. The constructor was appointed as the contractor. The company also working on several projects, including a civil housing project in Algeria. 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.

US$1: Rp14,100

Written by Editorial Staff, Email: theinsiderstories@gmail.com