IKN projects plentiful, Waskita targets Rp21 trillion in revenue: Targeting additional PMN of Rp3 trillion
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Proyek IKN marak, Waskita bidik pendapatan Rp21 triliun: Incar tambahan PMN Rp3 triliun
13 February 2023
By: Muhammad Ghafur Fadillah
Jakarta - PT Waskita Karya Tbk (WSKT) is targeting business revenue to grow 42% to around Rp20-21 trillion this year, compared to last year’s estimate. The company is targeting to win several tenders in New Capital City (IKN) Nusantara held this year to pursue the revenue target.
Waskita is also targeting a jumbo new contract value of Rp26 trillion this year, which increased from Rp20.23 trillion last year. In 2022, the company won Tempadung Interchange-Balang Island Bridge segment of IKN toll road and the logistics road construction project in Central Government Core Area (KIPP), specifically the construction of Sepaku Ring Road segment 4.
The company also won the construction of the presidential secretariat building and supporting buildings in the State Palace area.
Moreover, this construction state-owned enterprise (SOE) also won a construction project in Patimban Port in Subang Regency in East Java and several strategic partnership projects, namely Cimanggis-Cibitung (CCT) toll segment, Kanci-Pejagan (SMR) toll segment, and Pejagan-Pemalang (PPTR) toll segment. This year, the government is planning to hold tenders for IKN projects worth more than Rp23 trillion.
“Alhamdulillah (Praise be to God), throughout 2022, we won many prestigious projects, such as projects to support the G20 Summit and the construction of the pier in Patimban with a payment system that is no longer turnkey. In terms of cash flow, these projects are more guaranteed and feasible,” Waskita Karya President Director Destiawan Soewardjono explained on Friday (10/2/23).
Entering 2023, he hopes that the company can obtain projects that are not only prestigious, but also beneficial and sustainable. This will support the company’s financial performance in the future.
He reckoned that the revenue performance and the new contract value targets this year were quite realistic and not too hopeful, so they are expected to be achieved in line with the plan. For Waskita, the most important thing is projects that are in line with the company’s governance, which is good and low risk.
Besides that, he affirmed that the company could receive an additional state equity participation (PMN) of Rp3 trillion through a delayed rights issue process with the public’s participation. “Hence, we need the support of all parties, especially the government so that the company’s expectation can be met this year,” he said.
2022 realisation
Meanwhile, based on the research report of Mandiri Sekuritas (Mansek), four construction SOEs, namely Waskita, PT Adhi Karya Tbk (ADHI), PT PP Tbk (PTPP), and PT Wijaya Karya Tbk (WIKA), logged new contracts worth Rp108 trillion, which increased by 29% compared to the previous year. That amount is 91% of the decreased target.
The four companies logged fantastic new contracts in December 2022 worth Rp16.8 trillion or 15% of the total realisation in 2022. Most of the projects are toll road projects.
Meanwhile, last year, only PP and Adhi Karya were successful in achieving their new contract target in 2022. Adhi Karya’s new contract value surged by 55%, while Wika logged the highest new contract value worth Rp33.4 trillion.
This year, the Public Works and Housing (PUPR) Ministry has won infrastructure projects worth Rp6.4 trillion. In the future, tenders from the PUPR Ministry will be dominated by toll road projects, which will include Bayung Lencir-Tempino worth Rp5.9 trillion and Patimban toll road worth Rp4 trillion. “We are still observing the tender value of IKN projects this month,” the broker wrote.
