WIKA sets aside Rp18.1 trillion for capex

WIKA sets aside Rp18.1 trillion for capex

Logo of PT Wijaya Karya (Persero) Tbk. (bumntrack.com)

The use of capiex is still less than 10 percent of the total of Rp18 trillion
Jakarta (ANTARA) - State-run construction firm PT Wijaya Karya (Persero) Tbk (WIKA) has set aside Rp18.1 trillion for capital expenditures (capex) this year. "The use of capex is still less than 10 percent of the total of Rp18 trillion," WIKA Corporate Secretary Mahendra Vijaya said in Jakarta Wednesday,

The use of capex is yet to be maximized due to the company's relatively low needs, he said.

"We still use much the company's operational funds," he said.

WIKA will boost the use of capex in the second semester of 2019, along with many projects offered to the company, he said.

Moreover, many of the projects were obtained at the end of 2018 and that their designs are still being processed, he said.

WIKA was optimistic that it could achieve the target of clinching new contracts worth Rp61 trillion this year.

By the end of the first semester of 2019, WIKA inked new contracts worth Rp15.2 trillion, most of which come from other state-owned companies.

Nearly 39.27 percent of the new contracts deal with infrastructure, 39 percent with energy and industrial plant, 17.60 percent with industry and 4.12 percent with property.

WIKA is eyeing some construction projects in Africa, with contract value totaling more than Rp2 trillion.

"Projects are still underway in some countries, including Senegal, Rwanda, Ivory Coast, Madagascar, and Algeria. The potential contract value totals over Rp20 trillion," Mahendra Vijaya said recently.

The projects include the construction of road, ports, apartment, and central bank's building.

However, the company will conduct an in-depth evaluation, including their financial capability and potential benefit of the projects, before it takes the offer, he affirmed.