Wika eyes 45% increase in net profit

State owned infrastructure company PT Wijaya Karya (Wika) has set an ambitious 44.9 percent net profit increase this year, based on more construction projects coming from the government.

Wika corporate secretary Natal Argawan Pardede said Monday that the company aimed to reach its target Rp 253.59 billion (US$27.39 million) by the end of 2010, up from the Rp 175.03 billion collected last year.

"Construction projects, including general construction, building construction, power plants and mining, still dominate our business," he said in a press gathering.

Construction projects will contribute 34.68 percent or Rp 7.22 trillion to the company's 2010 contracts, which total Rp 20.82 trillion.

Wika is planning to issue bonds worth Rp 300 billion this year to secure the company's long-term finance.

The company is also planning to expand its overseas business, mostly in northern Africa.

"We have almost reached a deal to work on a housing project in Libya," Natal said, adding that the company was expecting to sign the contract later this year.

Natal refused to go into more detail, but he hinted that the project would be worth at least $50 million. (bbs)