Construction SOE issuers obtain state equity participation worth Rp18.5 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 - Emiten BUMN Karya kantongi dana PMN Rp18,5 triliun
15 September 2023
By: Muawwan Daelami
Jakarta - Two construction state-owned enterprise (SOE) issuers, namely PT Wijaya Karya Tbk (WIKA) and PT Waskita Karya Tbk (WSKT), will receive a state equity participation (PMN) worth Rp18.5 trillion. Out of the amount, Rp6 trillion will be received by Wijaya Karya and Rp12.5 trillion will be received by Waskita Karya through PT Hutama Karya.
The fund injection was approved by the Budget Board (Banggar) of the House of Representatives (DPR) at a meeting with SOE Minister Erick Thohir on Thursday (14/9/2023). Erick mentioned that the meeting approved the provision of a PMN worth Rp28.16 trillion to three SOEs.
“PT Hutama Karya will receive Rp18.6 trillion, Indonesia Financial Group (IFG) will receive Rp3.6 trillion, and PT Wijaya Karya Tbk (WIKA) will receive Rp6 trillion,” Erick said at a work meeting DPR Commission VI in Jakarta on Thursday (14/9/2023).
During the occasion, SOE Deputy Minister Kartika Wirjoatmodjo added that the PMN worth Rp18.6 trillion that will be provided to Hutama Karya would be divided into two portions. The first portion worth Rp12.5 trillion will be used to complete Waskita Karya’s toll roads and the second portion worth Rp6.1 trillion will be used to complete several toll segments of Trans-Sumatra toll road that are set to be completed in 2024.
Moreover, the man who is familiarly called Tiko also mentioned that the PMN for Wijaya Karya decreased to Rp6 trillion from Rp10 trillion. “We think that it [Rp6 trillion] is sufficient. Later, in 2025, we will add Rp4 trillion more,” Tiko said.
Completing projects
WIKA Corporate Secretary Mahendra Vijaya said that his company has logged new contracts worth Rp15.41 trillion until July 2023. The realisation also increased the company’s order book to Rp61.39 trillion.
He admits that the new contract realisation is proof that the company is still trusted by employers. ”The trust is in line with Wika’s capability to give the best performance and complete several national strategic projects (PSNs),” Mahendra said recently.
Out of the new contracts, 40.70% are from the infrastructure and building segment. Meanwhile, the rest are from the industry segment, the EPCC segment, and the realty and property segment.
Regarding employers, most of the projects obtained by Wika come from the government and SOEs by using the monthly progress payment scheme. Several projects that were obtained by the company in July 2023 included South Japek toll road section 2 and Wososukas SPAM segments 2 and 4.
Wika’s business sustainability is also reflected in its payment realisation to 1,314 work partners worth Rp636.29 billion in August 2023. Out of the amount, Rp198.86 billion were paid to 1,072 work partners that are small and medium enterprises (SMEs).
According to Mahendra, the payment also proves that the company can still fulfil its commitments to work partners to maintain their trust.
Implement GCG
Meanwhile, Waskita Karya (WSKT) President Director Mursyid emphasised that the company was committed to holding its corporate governance principles firm in carrying out its business process.
“The company is continuously strengthening its good corporate governance implementation to carry out its business process professionally and in an integrated manner, which includes the business judgement rule that is implemented in each of its decision on the management level,” Mursyid explained in his official statement on Thursday (14/9/2023).
The regulation that underlies the business judgement rule is Publicly Listed Limited Liability Company Law of 2007, specifically in Article 97 paragraph (5) and Article 114 paragraph (5). The articles regulate certain limitations on how directors and commissioners cannot be held responsible for the risks from supervisory decisions or actions as long as there is a proof of innocence that is in accordance with laws and regulations.
Mursyid mentioned that the company’s effort to continuously strengthen its commitment to implementing good corporate governance (GCG) was meant to make the company cleaner, more efficient, more transparent, more prudent, and more responsible.
“Waskita also believes that complete and comprehensive GCG implementation can provide added value to shareholders and maintain the company’s operational continuity in the future,” he said.
GCG can be implemented through the implementation of the business judgement rule in each decision to mitigate legal impacts.
