Waskita Karya wins Rp2.55 trillion in IKN contracts
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 raih kontrak IKN Rp2,55 triliun
8 November 2022
PT Waskita Karya (Persero) Tbk (WSKT) officially won the tender to construct the presidential secretariat building and the supporting building in the presidential palace area worth Rp1.35 trillion. This success increased the company’s total contracts from the new capital (IKN) megaproject to Rp2.55 trillion from Rp1.18 trillion.
“The company will mobilise their best resources to complete the project excellently. From the company’s experience, we believe that we can carry out this project in line with the quality and schedule stated in the contract,” Waskita Karya Corporate Secretary SVP Novianto Ari Nugroho said in his official statement on Monday (7/11/2022).
In the implementation later, Novianto continued that Waskita will not only pursue revenue, but they are also committed to maintaining the trust of the government and users in the company by considering and prioritising the safety aspect and the environment.
The company is planning to construct the presidential secretariat building and the supporting building in the presidential palace area in the IKN on a land of 50.678 square metres (m2), and the buildings will reach 33.312 m2 in size with three buildings in total, namely the presidential secretariat, the presidential security force mess, and the supporting building. The construction of the project is predicted to take 720 days with a completion target at the end of 2024.
Before officially winning the secretariat building and the supporting building in the presidential palace area in the IKN, the state-owned construction issuer with the ticker code WSKT has won two other tenders, namely Tempadung Interchange-Balang Island Bridge Segment of IKN toll road worth Rp990 billion and Sepaku Ring Road Segment 4 of Work/Logistics Road in IKN worth Rp182 billion.
Until September 2022, Waskita has booked a new contract value of Rp11.58 trillion that comes from government projects by 65.36%, private companies by 11.81%, state-owned enterprises (SOEs) and regional state-owned enterprises (BUMDs) by 10.98%, as well as subsidiary business development by 11.86%. Besides the new contract value achievement, the company is still participating in project tenders with value reaching Rp20 trillion from the government, SOEs, and private companies.
“With a winning rate of 26.67% from January to September 2022, Waskita will be able to pursue their target that reaches around Rp20-30 trillion this year,” Novianto added.
In line with the increasing contract value, Waskita was able to return their positive performance at the end of the third quarter of 2022, which can be seen from the company’s net profit that reaches Rp578.17 billion that soared by 766.60% from Rp66.71 billion last year.
Waskita President Director Destiawan Soewardjono said that the improvement in the company’s performance until the third quarter of 2022 shows the success of the financial recovery strategy that implemented the eight streams for recovery last year.
“This net profit achievement is supported by revenue from construction, fabrication, property, and strategic partnership on three toll segments in the third quarter,” Destiawan stated.
