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Govt mulls transferring debt-laden Waskita Karya’s projects to other SOEs
Another state-owned construction firm PT Wijaya Karya (WIKA) also requested the postponement of its debt repayments, which creditors approved as the company’s position is deemed less critical.
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Erick Thohir, head of the Asian Games 2018 Organizing Committee (INASGOC) and current state-owned enterprises (SOE) minister, speaks to journalists during a press conference in Jakarta on July 12, 2018. (AFP/Adek Berry)
T
he government is considering moving a number of projects from debt-laden state-owned construction company PT Waskita Karya to other state-run firms in the same sector, as it anticipates the worsening financial condition of the company could lead to project delays.
Waskita's financial performance has deteriorated due to several projects, particularly three toll road projects, State-Owned Enterprises (SOE) Deputy Minister Kartika Wirjoatmodjo told reporters on Wednesday.
The three include the Kayu Agung-Palembang-Betung toll road in Palembang, South Sumatra, the Bekasi-Cawang-Kampung Melayu (Becakayu) toll road in Greater Jakarta and the Krian-Legundi-Bunder-Manyar (KLBM) toll road, which is part of the Surabaya-Mojokerto toll road in East Java.
“The government will continue to inject capital to finish these toll roads. But we are considering whether this will be done through Waskita Karya or other SOEs,” Kartika said, as quoted from Liputan6.com.
Read also: IDX again suspends trade in Waskita Karya shares
Waskita failed to make timely coupon payments on its corporate bonds in early May, which resulted in the Indonesia Stock Exchange (IDX) halting trading of its shares for the second time this year.
Waskita’s debt situation has led the Finance Ministry to halt the state capital injection (PMN) needed to keep the company’s businesses running amid its debt restructuring process.
