Waskita Karya eyes new contract of Rp26 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 - Waskita Karya incar kontrak baru Rp26 triliun
19 January 2023
Jakarta - PT Waskita Karya Tbk (WSKT) is targeting new contract value in 2023 to reach Rp26 trillion, which increased by 5% from the estimate in 2022 that reached Rp25 trillion.
Waskita Corporate Secretary SVP Ari Nugroho said that the company’s new contracts in 2023 would include projects in New Capital City (IKN) Nusantara. “In IKN, we will focus on buildings and roads,” Novianto explained to Investor Daily on Wednesday (18/1/2023).
He affirmed that, until now, the company’s contract realisation in IKN had reached Rp4.16 trillion, which consists of mostly building and road projects.
He said that project tenders won by Waskita included State Secretariat Building and its supporting buildings, Sp. Tempadung-Balang Island Bridge segment of IKN toll road, Sepaku ring road segment 4, IPAL 1, 2, and 3 construction, IKN central government core area, building construction, and coordinating ministry office area packages 3 and 4.
Meanwhile, in the overseas market, Novianto mentioned that the company was currently working on road and bridge projects in Timor Leste worth Rp322 billion. “In targeting the overseas market, we are focusing on the markets in Southeast Asia, the Middle East, and Africa,” Novianto added.
Waskita’s new contract value growth target in 2023 is more moderate compared to last year’s that surged by 100%.
Meanwhile, Mirae Asset Sekuritas Indonesia Research Analyst Sia Nawir said that Waskita was currently experiencing a significant liquidity pressure.
“So, after debt restructuring, Waskita will most likely restructure other finances,” Sia said to Investor Daily. She predicts that the company’s cashflow is recovering in accordance with the reception of the state equity participation (PMN). Besides making it a part of the financial recovery strategy, with the PMN, the company can complete ongoing projects.
“The government’s main support to revive infrastructure projects is the main catalyst of construction issuers such as Waskita,” she added.
However, she is still wary of Waskita’s performance development in the future. Several threats, such as global recession, Indonesia’s slow economic growth, and the 2024 presidential election, will encourage investors to wait and see. This is worsened by the increase in construction raw material prices and cost of funds due to the increase in banks’ interest rate.
“Any one of these can slow down construction business performance,” Sia concluded.
