New contracts: WIKA & PTPP hunting for projects
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.
Bisnis Indonesia - Kontrak baru: WIKA & PTPP berburu proyek
3 November 2023
By: Dionisio Damara
Jakarta - The new contract value of two state-owned construction issuers, namely PT Wijaya Karya (Persero) Tbk (WIKA) and PT PP (Persero) Tbk (PTPP), grew until the third quarter of 2023.
WIKA secured new contracts worth Rp21.44 trillion until September 2023. The amount increased by 12.5% year-on-year (YoY), but it is still only 57.94% of their Rp37 trillion target this year.
The largest contributor to the new contract value is the infrastructure and building segment that has contributed 49.6% to the total of new contracts, followed by the industry, EPCC, property, and investment segments.
In terms of employers, most projects obtained by Wijaya Karya came from state-owned enterprises (SOEs) and the government using the monthly progress payment scheme.
“The new contract realisation is crucial for the company’s recovery. It will guarantee cash in for the company,” WIKA Corporate Secretary Mahendra Vijaya said in his written statement on Thursday (2/11).
Mahendra added that the new contract value growth also proved that WIKA could maintain its work quality in terms of processes and products so that employers could still entrust their projects to the company.
PTPP’s new contract value realisation also grew to Rp23.67 trillion until the third quarter of 2023. The realisation is the same as 69.61% of PTPP’s new contract target for 2023 that reaches Rp34 trillion.
PTPP Corporate Secretary Bakhtiyar Efendi said that there were several projects that are of high value.
The projects include North-South Commuter Railway (NSCR) – S3C with a contract value of Rp2.19 trillion, Kamal-Teluknaga-Rajeg (Kataraja) Toll Road Section 1 with a contract value of Rp1.57 trillion, and North-South Commuter Railway – S01 worth Rp1.36 trillion.
“Moreover, the remaining orderbook of PTPP until the third quarter of 2023 is still relatively the same at Rp60 trillion,” Bakhtiyar said to Bisnis as quoted on Sunday (22/10).
PTPP also worked on 10 Nusantara Capital City (IKN) projects until August. They claim that the construction progress is on target.
Next Article: Climate change adaptive city infrastructure
