Home Investor Corner Indonesia’s Wika Beton Targeting Sales, Contract Grow 15%

Indonesia’s Wika Beton Targeting Sales, Contract Grow 15%

PT Wijaya Karya Beton Tbk (IDX: WTON) targeting every year the sales and contract of the company could grow around 15 percent until 2024 - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) PT Wijaya Karya Beton Tbk (IDX: WTON) also known Wika Beton, targeting every year the sales and contract of the company could grow around 15 percent until 2024. The target, said the management, supported by Indonesian government’ infrastructure projects, including the new capital city program.

Talking to media on Wednesday (08/21), Finance Director Imam Sudiyono said to raised the target the precast producer prepared capital expenditure Rp779 billion (US$54.85 million). The funds will use to build mobile plants, precast, ready mix, and quarry along with the development of projects in Padang, Pekanbaru and other areas.

“Until now we have spent Rp170 billion. While, the source of funds we consider to release 4.33 percent of treasury stock and other options,” he added.

While, for the new capital city to Kalimantan, Sudiyono said, Wika Beton ready to catch the opportunity caused the company have 26 hectares land in East Kalimantan. The projects is estimating need costs Rp480 trillion (US$33.80 billion) until 2024.

He continues, until July, Wika Beton has won a contract Rp9.33 trillion. By the end of this year, he optimistic the total contract worth of Rp14.5 trillion, consisting of new contracts of Rp 9.08 trillion and carry-over of Rp 5.41 trillion.

Based on financial statements, as of June 2019, unit of PT Wijaya Karya Tbk (IDX: WIKA) has posted a net profit of Rp165.34 billion, with a sales Rp2.64 trillion. Sudiyono said, infrastructure projects are still the biggest contributor to the company’ performance at 68.97 percent.

Next is occupied by energy sector 18.85 percent, industrial, property, and mining sectors with contribution of 3.88 percent, 7.03 percent and 1.27 percent respectively. Major projects being undertaken included Pekanbaru – Padang Toll Road, Bengkinang – Pangkalan, Bogor Outer Ring Road Section 3A, New Yogyakarta International Airport, Kijing Wharf project, Sigli – Banda Aceh Toll Road and the development of Sultan Hasanuddin Airport in South Sulawesi.

WIKA Beton, started the pre-cast concrete industry in 1977 by developing pre-cast concrete panel for low-rise housing projects. Ever since, WIKA is determined to keep developing their products in order to anticipate the development plan and emerging infrastructure projects.

To date, WIKA Beton owns nine factories across the archipelago, such as in North Sumatra, Lampung, South Lampung, Bogor, Karawang, Majalengka, Boyolali, Pasuruan, South Sulawesi and two factories owned by its subsidiaries. Currently WIKA Beton is the largest manufacturer of precast concrete product in Indonesia and South East Asia.

The company had three subsidiaries, PT Wijaya Karya Komponen Beton (WIKA Kobe) established in 2012, PT Wijaya Karya Krakatau Beton in  2013, and PT Citra Lautan Teduh in Batam at the end of 2014.

US$1: Rp14,200

by Linda Silaen, Email: theinsiderstories@gmail.com