EPC projects boost WIKA performance

Investment activities undertaken by PT Wijaya Karya Tbk (WIKA) and its subsidiaries have shown positive results, in line with its roadmap and vision 2020 to become a leading engineering, procurement and construction (EPC) and an investment company.

Since February 2011, WIKA has finalized its first investment project, namely diesel power plant PLTD Pesanggaran Bali with capacity of 3x18 MW, which was developed under BOT (build, operate and transfer) scheme. The project has contributed revenues to WIKA.

At present WIKA is developing three power plant projects, all at the same time, namely PLTD Ambon (25 MW), PLTD Borang (60 MW) and gas power plant PLTG Rengat (20 MW). This is expected to boost the company?s overall performance.

The company has projected annual revenues of Rp 469.99 billion per year and net profit of Rp 46.998 billion per annum from the four projects between 2012 and 2019. Therefore, the company hopes for relative stable and sustainable revenues, compensating against the rather fluctuative revenues from construction projects.

In 2012, the company plans to invest in the development of PLTG Siak (28 MW) with contract value of Rp 350 billion and a micro hydro power plant (PLTMH) West Java with capacity of 13 MW worth Rp 300 billion.

Meanwhile, its subsidiary WIKA Beton?s expansion on a new plant development on 15.5 hectares of land in Karawang, West Java has shown results. The company has received order of 28,000 tons, which has started production on July 15, 2011 to meet construction material demand for Kampunng Melayu-Tanah Abang non-toll road, developed jointly by WIKA, PT Jasa Konstruksi, PT Adhi Karya, PT Istaka Karya and Wastika Karya.

Apart from investment in energy sector, WIKA also invests in infrastructure. Its recent work was the Surabaya-Mojokerto (Sumo) section I-A (Waru-Sepanjang) which is owned by PT Marga Nujyasmo Agung, with a length of 2.3 kilometers of the total 36.27 km. PT Marga Nujyasmo is owned jointly by PT Jasa Marga (55 percent), PT WIKA (20 percent) and PT Moeladi 25%. At present, WIKA is working on finalizing the Sumo Section I-B and section IV, linking Krian and Mojokerto.

WIKA is also investing in Serangan-Tanjung Benoe Tollroad in Bali with a length of 10 km. The project is jointly developed by consortia, comprised of PT Jasa Marga, PT Pelindo III, PT Angkasa Pura I, Bali Tourism Development Center, PT Hutama Karya, WIKA, and PT Adhi Karya.

WIKA also has a subsidiary engaging in developing property, namely WIKA Realty. The company has invested in developing apartment, condominium and office park projects in Cawang area, East Jakarta.

?The recurring income from those various investment projects will strengthen the company?s revenues and net profit,? said President Director WIKA, Bintang Perbowo at a press conference on Saturday.

In August 2011, WIKA has secured project contracts worth Rp 1.5 trillion. Therefore, in the first eight months to August, the company?s order book has reached Rp 8.1 trillion, or 156 percent compared to order book value in the same period last year. The order book value represents 65.9 percent of WIKA?s 2011 new contracts target.

The projects were secured by WIKA and its subsidiaries ? WIKA Beton, WIKA Intrade, WIKA Realty, WIKA Jabar Power and WIKA Insan Pertiwi.

Power plant projects that have been secured include PLTGU Borang with capacity of 60 MW in South Sumatera worth Rp 815.66 billion, PLTU 2x10 MW Ketapang, West Kalimantan worth Rp 296.57 billion and PLTG Rengat 20 MW in Riau worth Rp 128 billion.

Given the new contracts worth Rp 8.1 trillion, WIKA expressed its optimism to achieve target of new contracts of Rp 12.3 trillion this year. (giok)