JAKARTA. President Joko Widodo or Jokowi has given a nod to the state equity participation plan in PT Wijaya Karya (Persero) Tbk (WIKA) of an extra IDR 6 trillion.

In fact, WIKA’s loss in 2023 swelled to IDR 7.12 trillion. It was 1,106% higher than 2022, in which the company only struggled with a loss of IDR 59.59 billion.

In regard to the state equity participation worth IDR 6 billion for WIKA, Jokowi has signed on Government Regulation No.15/2024 on March 28, 2024. The extra capital, according to Jokowi, is necessary to improve capital structure and business capacity of WIKA in completing national strategic projects (PSN).

It is worth mentioning that said capital was injected alongside the capital raise with pre-emptive rights, or rights issue, initiated by WIKA. In this corporate action, WIKA issued 48.61 billion new shares worth IDR 9.22 trillion.

This extra equity participation in WIKA will maintain the government’s portion. Meanwhile, portions of other investors, who do not participate in this corporate action, will be potentially diluted by up to 83.92%.

In the meantime, only the Indonesian government declared its willingness to exercise the rights over those new shares issued in the rights issue of WIKA.

Based on the official disclosure, WIKA will allocate IDR 6 trillion of the proceeds of the rights issue to its working capital for completion of national strategic projects. The remainder will then be utilised as working capital for completion of non-PSN projects. (KR/ZH)