JAKARTA. The Indonesian government decided to cancel the domestic investment to PT Waskita Karya Tbk (WSKT), which, according to the initial plan, is worth IDR 3 trillion this year. This cancellation then simultaneously puts a halt to the rights issue process.

This decision is stated in the Letter of the Minister of State-Owned Enterprises (SOE) No. S410/MBU/08/2023 dated August 2, 2023, regarding the Cancellation of Domestic Investment of the Fiscal Year 2022 of PT Waskita Karya. On the other hand, the Letter of the Coordinating Minister of Economic Affairs of Indonesia, as the Head of Privatisation Committee, No. EK.5/126A/M.EKON/05/2023 dated May 10, 2023 regarding Follow-Up of Domestic Investment for PT Waskita Karya (Persero) Tbk mentions several points below.

First, the Privatisation Committee, through said letter, has agreed and decided to return the domestic investment of FY 2022 worth IDR 3 trillion from the company to the State General Cash Account and stop the rights issue or company privatisation.

The second is WSKT is said to prepare strategic initiatives to complete two toll roads that are supposed to be funded by this domestic investment of FY 2022 of Waskita, which are Kayu Agung – Palembang – Betung Toll and Ciawi – Sukabumi Toll.

Mursyid Suyadi, Presiden Director of Waskita Karya, mentioned that this cancellation will surely affect WSKT’s work plan. However, WSKT is committed to complete existing projects by seeking alternative fund sources.

WSKT will also coordinate with stakeholders in finding alternative fund sources for the project completion, so that the performance target could be achieved accordingly, added Suyadi in the information disclosure quoted Monday (7/8). (AM/ZH)