WIKA’s net profit soars 242%
Laba Bersih Wika Melonjak 242%
Investor Daily, 28 April, 2017
JAKARTA - PT Wijaya Karya Tbk (WIKA) has posted net profit of Rp 245.08 billion in the first quarter of 2017, or a jump of 242 percent, compared to the same period in 2016. WIKA's sales, excluding joint operation projects (KSOs), increased by 39.83 percent to Rp 3.81 trillion, from Rp 2.72 trillion.
President Director of WIKA, Bintang Perbowo, believes that the upward trend will continue until the end of 2017. "WIKA's performance during the first quarter indicates that we are on track and will potentially continue to grow," Bintang said in an official statement on Thursday (27 April).
The new contracts secured by WIKA managed to exceed the target. Until April, the company's new contracts reached Rp 16.63 trillion, or 38.45 percent of this year's target. The value of these new contracts jumped 175.8 percent over the same period last year.
The spike in new contracts has come from the construction of Bandar Tinggi - Kuala Tanjung railway line, as well as the development of EPC (Engineering, Procurement, and Construction) and OM (Operation and Maintenance) businesses from the PLTMG project.
The acquisition of these new contracts extends the list of contracts previously secured, one of which is EPCC (Engineering, Procurement, Construction, and Commissioning) for the Development of Asembagus Sugar Mill (Situbondo), Tumbang Samba Bridge Construction (Central Kalimantan), Integrated Tank Storage Terminal, Trans Park Cibubur, PLTU [Steam Power Plant] 1 x 1,000MW in Cilacap, and Jakarta International Equestrian.
This year, WIKA has projected to make a net profit of Rp 1.2 trillion, an increase of 20.45 percent from 2011’s achievement of Rp 1.01 trillion. The contracts secured by the company are projected to reach Rp 102.94 trillion, or 123.59 percent of the value of 2016 contracts. The composition of acquired new contracts in 2017 is estimated to comprise government projects, with a 29.8 percent portion, 30 percent from state-owned enterprises (BUMNs) and 40.2 percent from the private sector.
Strategic Partner
French company Matiere Group, through PT Matiere Bridge Building Indonesia, has established partnership with PT Wijaya Karya Tbk (WIKA) to develop a road and steel-frame bridge project.
Finance Director of WIKA, ANS Kosasih, and Chairman of Matiere, Philippe Matiere, have signed a memorandum of understanding. The signing of the memorandum was witnessed by French President, Francois Hollande.
There are at least three main agendas, namely the construction of a steel frame bridge with certain specifications, the building of a factory and bridge production facilities in Indonesia with Matiere products, as well as providing opportunities for WIKA to develop business abroad.
This year, WIKA has bagged several contracts for road and bridge works, including the construction of the Serang - Panimbang toll road worth Rp 2.85 trillion, the Cengkareng - Kunciran toll road worth Rp 1.98 trillion, and Natar Bora Road in Timor Leste worth Rp 157.7 billion. As for the construction of bridges, there is Tumbang Sumba Bridge in Central Kalimantan worth Rp 259.4 billion, and there is the construction of roads and bridges in Soibada, Timor Leste, valued at Rp 98.4 billion.
"The need for road and bridge development in Indonesia is increasing along with the growing economy in every region," said Kosasih. According to him, Matiere, which specializes in steel structures, will certainly make a difference to WIKA as a leading infrastructure company in the country.
These projects certainly present an opportunity for Matiere to participate in the future, which can be in accordance with the modular bridge technology owned by the French investor. It is also possible to provide financial assistance. Conversely, WIKA, as Matiere's partner in Indonesia, will facilitate the provision of land and permits for the fabrication needs.
All this time, in the construction of roads and steel bridges, WIKA always uses the products of its subsidiary, i.e. Wika Industri Konstruksi. As for the construction of concrete roads and bridges, products from Wika Beton is used. It is believed that the technology offered by Matiere will complement the range of products from WIKA's subsidiary companies.