State-owned construction firm PT Wijaya Karya Tbk (Wika) had signed a valuable contract worth IDR 19 trillion by September 2022 for infrastructure projects in Indonesia’s new capital (IKN), Nusantara. The whopping deal reflects the company’s 44.63% total target in signing new contracts in 2022.
Wika was established in 1960 in Jakarta. The company’s root dated back during the Dutch colonial era under the name NV Technische Handel Maatschappij en Bouwbedrijf Vis en Co. (NV Vis en Co.). Since 2020, Agung Budi Waskito has become the CEO of the company.
As the construction of the Nusantara new capital megaproject is still ongoing, Wika hopes to achieve an increase in contracts in 2022. By September 2022, Wika’s new contracts focus on infrastructure projects such as engineering, procurement, construction and commissioning (EPCC) and buildings while the others are precast industries and steel structures.
Achieving yearly target
Wika Corporate Secretary Mahendra Vijaya said the company still hoped to achieve its predetermined target in 2022 of IDR 42.57 trillion, by getting new contracts.
Vijaya said on October 14, 2022, as quoted by Kontan.id, that the company was upbeat to gain more contracts in 2022, compared to 2021. “We can’t predict what the conditions will be like in the future,” he said.
The highlight of Wika’s contracts in the new capital in North Penajem Paser, East Kalimantan, worth IDR 1.1. trillion. The two contracts consist of the Kariangau-Simpang Tempadung toll road construction worth IDR 730 billion and the modular building for the workers’ flats worth IDR 830 billion.
Vijaya said that Wika would take part in other bidding in the future. The company is still participating in three project tenders for the IKN.
Wika’s recent performance
In the first half of 2022, Wika posted a net income of IDR 7.18 trillion. This revenue rose 6.16% on an annual basis from the same period in 2021 of IDR 6.77 trillion. However, the revenue performance was not followed by a positive profit achievement. Wika posted a net loss of IDR 13.32 billion in the first half of 2022. This position is inversely proportional to the net profit of IDR 83.42 billion in the first half of 2021.
