Construction SOE: WIKA's gain from Whoosh
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 - BUMN Karya: Untung WIKA dari Whoosh
11 October 2023
By: Dionisio Damara
Jakarta - PT Wijaya Karya (Persero) Tbk (WIKA) is predicted to massively profit from the official operation of Whoosh or Jakarta-Bandung High-speed Railway.
The construction state-owned enterprise (SOE) issuer is the only domestic contractor that is fully involved in the construction process of Whoosh.
In the construction of Jakarta-Bandung High-speed Railway (KCJB), WIKA joined a consortium that involved a foreign contractor that has extensive experiences in constructing high-speed railways in various countries.
Wijaya Karya Corporate Secretary Mahendra Vijaya said that the company has officially logged full sale from the project’s contract value following the completion of the high-speed railway construction.
“The completion of the construction phase marks the full sale of the contract value of Jakarta-Bandung High-speed Railway where WIKA worked on 30% of KCJB’s construction value,” he said to Bisnis on Tuesday (10/10).
Based on indonesia.go.id, Whoosh has a construction value of US$ 7.3 billion or around Rp109.5 trillion. Hence, with a share portion of 30%, WIKA is predicted to obtain Rp32.85 trillion from the high-speed railway project.
Mahendra said that financial performance improvement was one of the focuses of the ongoing transformation process in the company.
In terms of project portfolio, WIKA chose to refocus its business by increasing projects from the government as they provide monthly progress payments and a down payment.
“With the payment model, the company can manage its cashflow independently in every project to prevent deficit in a project,” Mahendra said.
Previously, Wijaya Karya President Director Agung Budi Waskito said that the development of Whoosh was a transfer knowledge opportunity for WIKA Group on high-speed railway construction. WIKA worked on three high-speed railway stations, namely Halim Station, Karawang Station, and Padalarang Station.
