State-owned construction company PT Wijaya Karya Beton (WIKA Beton) has secured project contracts worth Rp612 billion (US$38.5 million) in the new capital city of Nusantara (IKN) by the second quarter of 2024.
Syailendra Ogan, Director of Finance, HR, and Risk Management at WIKA Beton, claimed that the company has established itself as a market leader with its products widely applied in IKN.
Overall, Syailendra said, the company has generated revenue of Rp2.20 trillion from various projects during the second quarter of 2024. These projects include the construction of toll roads, apartments, residential buildings, and projects commissioned by the Ministry of Public Works and Housing (PUPR).
“The Rp612 billion is from IKN projects up until the second quarter of 2024,” Syailendra told a media gathering in South Jakarta on Wednesday, August 7, 2024.
He said further that the Rp612 billion contract value is not solely from WIKA Beton but is a combination of contributions from its subsidiaries, including PT Wijaya Karya Komponen Beton, PT Wijaya Karya Pracetak Gedung, PT Citra Lautan Teduh, and PT Wijaya Karya Krakatau Beton.
The contract value originates from various projects, such as the 3B KTT Kariangau – SP. Tempadung toll road section project, where WIKA Beton supplied raw materials like PC Spun Pile and Readymix.
As a result, WIKA Beton is optimistic that the IKN projects will contribute approximately 30 percent of the company’s new contract target of Rp7.48 trillion by the end of 2024.
In line with this, WIKA Beton is also confident in achieving new contract revenues of Rp7.48 trillion by the end of 2024. Syailendra cited that several targeted projects include toll road construction, the new capital city (IKN), private factory infrastructure, dams, ports, office buildings, LRT and MRT railway projects, and others.
To support this achievement, Wika Beton has allocated a capital expenditure budget of Rp230.17 billion this year. Additionally, WIKA Beton has a carry-over contract value of Rp 4 trillion to sustain sales throughout the election period.
WIKA Beton is also proactively seeking non-state budget (APBN) projects from the private sector, state-owned enterprises (SOEs), and international markets.
“This strategy is expected to support the company’s optimal performance while maintaining a strong commitment to quality standards and good corporate governance,” Syailendra concluded.
