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Govt mulls further Rp 4t injection for debt-laden Wijaya Karya in 2025
State-owned construction firm PT Wijaya Karya (WIKA) is set to recieve Rp 6 trillion in next year's budget, and the government plans to add another Rp 4 trillion in 2025.
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Two workers of PT Wijaya Karya Beton assess precast concrete products at a factory in Cileungsi, Bogor, West Java . (Antara/M Agung Rajasa)
T
he government is considering a Rp 6 trillion (US$391 billion) state capital injection (PMN) to debt-laden state-owned infrastructure firm PT Wijaya Karya (WIKA), which if approved would be disbursed in the first quarter of next year.
Finance Minister Sri Mulyani Indrawati said on Tuesday that the funds are earmarked for the completion of several strategic national projects (PSN), and she assured that the money would not go directly into the firm's accounts.
“We could therefore ensure that the new injection would not be lost or diluted because of the company’s financial problems," she explained in front of House Commission XI which oversees financial affairs, on Tuesday.
Deputy State-Owned Enterprises (SOEs) Minister Kartika Wirjoatmodjo stated that the proposed injection was lower than an initial plan for Rp 10 trillion.
The ministry decided against the larger injection, arguing that the smaller amount would suffice for this period, but the deputy minister said the company may receive the rest of the money later through a different injection.
"Maybe we would add another Rp 4 trillion in 2025," he said in front of Commission VI, part of the House of Representatives that oversees SOEs.
Read also: Govt proposes Rp24t injection to save toll road projects of ailing SOEs
