Wika finance director ANS Kosasih said the company had already achieved 11.8 percent of its target to book Rp 43.2 trillion (US$3.2 billion) worth of new contracts this year, or equal to
Rp 5.1 trillion, in January alone.

“We are therefore optimistic given this achievement in the first month, which is already six times what we achieved in January last year,” Kosasih said on Tuesday.

The newly signed projects consisted of a power plant, dam, as well as toll roads, with the 83.6-kilometer Serang-Panimbang toll road as the latest secured contract. Several offshore projects also contributed to the achievement, such as the bridge construction project in Comorro, Timor Leste, worth approximately Rp 300 billion.

Overall, most of the new contracts came from the infrastructure sector, which was expected to be the main source of new contracts for the rest of the year. From infrastructure, Wika is gunning for Rp 25.8 trillion worth of new contracts.

Kosasih said the new contract target, set at Rp 43.2 trillion, was lower than the Rp 54.7 trillion target set last year. The value of new contracts targeted last year was exceptionally higher because of a high-speed railway project worth Rp 15.8 trillion.

The firm was appointed as the project’s contractor in December last year, with a 30 percent ownership in the China-backed railway mega project. The remainder would be owned by a Chinese consortium, which includes the China Railway Corporation.

Wika expects the railway project — connecting Jakarta and Bandung in West Java — to generate multiplier effects for the company, as large amounts of materials are needed. Wika’s subsidiary such as Wika Beton may enjoy the benefits as they could provide the concrete for the project.

“I think Wika Beton could book around Rp 3 trillion from this opportunity,” he said.

Taking into account projects carried over from last year, the firm aims to book a total Rp 102.9 trillion worth of contracts this year, an increase from Rp 83.2 trillion last year.

For further expansion, Wika is gearing up to list two of its subsidiaries, Wika Gedung and Wika Realty, on the stock market. Initial public offering (IPO) of the two subsidiaries are scheduled to launch, consecutively, in the third and fourth quarter.

The IPOs were initially planned for 2016, but were delayed. “We hope that through the IPOs, we can gather Rp 3 trillion from each subsidiary,” Kosasih said, adding that the company might offer up to 40 percent of its shares.

The IPO proceeds would go to the subsidiaries for further expansion, he said.

With the promising outlook and plans in place, the firm is upbeat on its profits this year, eyeing Rp 1.2 trillion in net profit.

In 2016, the company booked Rp 940 billion in net profit, a 25 percent more than its initial target of Rp 750 billion, most of which was recorded mid-year.

Wika corporate secretary Suradi said the company allocated Rp 12 trillion for capital expenditure this year, much higher than last year’s Rp 1.4 trillion.

“We have plenty of cash from state capital injection and also rights-issue proceeds last year. Now, we want to develop our projects like the toll roads, real estate development, and power plants,” he said.

The firm also plans to issue bonds worth up to Rp 10 trillion under a shelf-registered scheme starting from 2017 to 2022. Such a scheme allows issuers to sell multiple bonds through only one subscription with the Financial Services Authority (OJK).

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