JAKARTA – PT Waskita Karya (Persero) Tbk (WSKT), a state-owned construction company, has decided to refocus its business strategy on its core operations: construction services, particularly in building, dam and irrigation projects, as well as roads and bridges. According to management, this is part of the company’s effort to improve its financial performance.

During WSKT’s Public Expose today (26/11), the board expressed optimism regarding its 69 ongoing projects as of October 2024, with a total value of Rp44.4 trillion. These projects include developments in the new capital city (IKN), the Musi River Bridge in Sumatra, the Mbay Dam in East Nusa Tenggara, and the Jlantah Dam in Java.

In addition to focusing on its core construction services, WSKT aims to diversify its contract sources to further enhance performance. “While the government has been our main market, we are also focusing on new markets,” said Muhammad Hanugroho, Waskita Karya’s President Director.

The new markets include projects from private entities and non-public works (non-Kementerian PU) and non-housing (non-Kementerian PKP) government projects. “We’re looking at projects from state-owned enterprises (SOEs) like Angkasa Pura and Pelindo, as well as local government projects like the Velodrome LRT and LRT projects in Surabaya and Bali,” explained Rudi Purnomo, WSKT’s Director of Business Strategy, Portfolio, & Human Capital.

For 2025, WSKT plans to reduce its reliance on projects from the Ministry of Public Works, targeting only 12-16% of contracts from this sector. The company is also eyeing opportunities in new government programs, including the "3 Million Homes" initiative and food resilience projects, which will require significant investment. “This is a new market niche, and we need to enter it,” Hanugroho noted.

To improve cash flow, Waskita also plans to divest several toll road sections that are already operational. Earlier this year, the company successfully divested the Bocimi Toll Road for Rp755 billion. For 2025, it plans to sell off the Pemalang-Batang and Pejagan-Pemalang toll roads, with the Pasuruan-Probolinggo toll road divestment projected for 2027.

By October 2024, WSKT had divested 10 toll road sections, totalling Rp15.6 trillion. “We need to divest these 10 toll road sections to ensure business sustainability and fulfil our commitments to creditors and investors,” Hanugroho emphasized.

As is known, WSKT is currently undergoing a restructuring process for two banking facilities and four series of unsecured bonds, with a total value of Rp36.35 trillion. (ZH)