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Wika gets Rp 2.7t in contracts
State-owned construction firm PT Wijaya Karya (Wika) has already secured 29 percent of its 2009 target for new contracts by winning Rp 2
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State-owned construction firm PT Wijaya Karya (Wika) has already secured 29 percent of its 2009 target for new contracts by winning Rp 2.7 trillion (US$259.9 million) of contracts for domestic infrastructure.
Wika president director Bintang Perbowo said carry-over projects from last year, worth Rp 7.8 trillion, mean’t the total value of 2009 contracts has so far reached Rp 10.5 trillion.
“[The financing] of the new contracts come from the state budget, private companies and state owned enterprises (SOEs),” Bintang told journalists at a conference Monday.
SOEs, for instance, have channelled more than Rp 1.9 trillion worth of projects to Wika, said Bintang.
Wika corporate secretary Natal Argawan told The Jakarta Post that out of the amount “We will use Rp 1.9 trillion and Rp 13 billion for coal mining projects in Tanjung Jati B [in Central Java] to supply [state power company] PT PLN and Bagendang Sampit Port [in Central Kalimantan] respectively.”
According to Natal, another Rp 600 billion will be distributed to its five subsidiaries.
The firm will also invite private companies, such as PT Poso Energy, PT Bimara Transia and PT Karunia Berca Indonesia as well as government ministries and SOEs to join in several projects.
Budi Harto, a Wika director said the company was also looking at overseas construction projects.
“We are concentrating to get more contracts from Algeria after finishing some road construction there by the end of this year,” said Budi.
Wika recently won sub-contracts worth between Rp 700 billion and Rp 1 trillion from a Rp 40 trillion road project in Algeria.
He added that Algeria was a strategic market as only a few foreign contractors were involved in construction projects there.
“The Algerian government appears to like our capacity and experience,” Budi added.
In the first quarter of this year Wika posted Rp 45.93 billion in net profits, a 27 percent increase compared to Rp 36.16 billion in the same quarter in 2008
“The growth was supported by our income which netted Rp 1.30 trillion until March,” Bintang said.
Meanwhile, the state-owned toll road operator PT Jasa Marga announced Monday its plan to open bids for a tender for a new Rp 3 trillion toll road connecting Cengkareng, Kunciran and Serpong in Greater Jakarta to participation by private companies later this month.
Jasa Marga finance director Reynaldi Hermansjah said the company would allocate Rp 1.4 trillion for purchasing land.
“The land clearing for the Cengkareng-Kunciran road section will cost Rp 650 billion, while that for the Kunciran to Serpong section will cost Rp 750 billion,” he said.
The 26.4-kilometer toll road is set to be finished in the fourth quarter of 2011, according to Reynaldi.
The company still has five new toll road projects including the Bogor Ring Road in West Java, the Semarang-Solo toll road in Central Java, and the Gempol-Pasuruan and Surabaya-Mojokerto toll roads in East Java. Jasa Marga is targeting to finish those toll roads in 2012.
At present, Jasa Marga operates 13 toll roads throughout Indonesia, with revenue targeted to reach Rp 3.7 trillion by the end of 2009.
In this first quarter, the company enjoyed Rp 367.7 billion of operational profit, representing a 1.6 percent increase from Rp 361.9 billion in same quarter last year.
“Our net profit also increased to Rp 196 billion or up 4 percent in Q1 this year, on the Rp 189 billion in Q1 2008,” Reynaldi said. (naf)
