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 - Waskita & WIKA Torehkan Kontrak di IKN Rp 14 Triliun
21 February 2024
By Muawwan Daelami
Jakarta, ID – PT Waskita Karya Tbk (WSKT) and PT Wijaya Karya Tbk (WIKA) have secured new contracts worth Rp14.63 trillion from the Nusantara Capital City (IKN) megaproject. Within this amount, Waskita’s share amounts to Rp7.5 trillion, while Wika’s share stands at Rp7.13 trillion.
Waskita has secured contracts for 12 projects within the IKN, amounting to a total value of Rp13.6 trillion. From this sum, the company's share reaches Rp7.5 trillion. The projects encompass Sepaku Ring Road Section 4 worth Rp139 billion, IKN Toll Road Segment 5A worth Rp1.12 trillion, the State Secretariat Building worth Rp1.35 trillion, and Coordinating Minister Building 3 worth Rp403 billion.
There are also Coordinating Minister Building 4 worth Rp735 billion, Wastewater Treatment Plants (WWTPs) 1, 2, and 3 in the Central Government Core Area (KIPP) within IKN worth Rp447 billion, IKN District Feeder Road worth Rp644 billion, Civil Servant Flat 3 worth Rp1.13 trillion, IKN National Road Section 6C-1 worth Rp539 billion, MUT-01 worth Rp158 billion, IKN Toll Road Segment 3B-2 worth Rp533 billion, and IKN VVIP Airport Access Road.
Waskita Karya President Director Muhammad Hanugroho said that, as a state-owned enterprise (SOE) in the infrastructure sector, the company was committed to supporting infrastructure development in Indonesia. Through the construction of IKN projects, Waskita contributes to the government's efforts to attract more investments to IKN. This is achieved through the completion of facilities and infrastructure in IKN.
The commitment is in line with the government’s plan to relocate civil servants to IKN in July. Hence, his company promises to accelerate the construction of projects. “It is also in accordance with the hope of President Joko Widodo to hold an Independence Day ceremony on 17 August 2024 in IKN,” Hanugroho said in his official statement to Investor Daily on Tuesday (20/2/2024).
On the other hand, WIKA Corporate Secretary Mahendra Vijaya mentioned that currently, WIKA Group has secured contracts worth Rp7.13 trillion for projects in IKN. The projects that will be worked on by the company include IKN Toll Road KKT Kariangau-Sp.Tempadung 3B Segment, IKN Toll Road KKT Kariangau-Sp Tempadung 3B-2 Segment, Sumbu Kebangsaan Road East, and the Wastewater Pipeline Network.
“We are also involved in a joint operation to construct the Presidential Office Building, the State Palace Building, and the Ceremony Field in the Presidential Palace Area in IKN,” he stated.
Attracting investments worth Rp45 trillion
On a separate occasion, IKN Authority Funding and Investment Deputy Agung Wicaksono revealed that in the next several weeks, groundbreaking would be conducted for more projects in IKN. This will increase the number of projects in the new capital city.
“Until we are sure. With the policy made by the government, investments will continue to flow. So, the majority of IKN will be constructed through funding from private investors, the public, and international investors, rather than the state budget,” he stated.
He claims that there are many investors who have stated their interest to invest in IKN. The IKN Authority has received 357 letters of intent (LoIs) with 150 LoIs coming from foreign companies.
“Most are from Singapore, Malaysia, Japan, China, and Korea. We will facilitate the selection process, enabling them to participate as foreign investors or through foreign direct investment (FDI),” he added.
Most of the foreign investors are focused on constructing housing, apartments, residences, and landed houses for civil servants. This is evident from the eight companies currently conducting feasibility studies.
“We are presently in the evaluation phase. Subsequently, we will proceed with the selection process for tendering. If the plan comes to fruition, the participating companies, including those from China and Malaysia, are expected to allocate a minimum of Rp45 trillion from their capital expenditures for construction,” Agung added.
