The share price of listed state-owned construction company Waskita Karya and its peers were down on the Jakarta Stock Exchange on Tuesday (20/02), after the government announced a temporary halt on all construction projects following an accident at one of Waskita's construction sites in East Jakarta. (JG Photo/Yudhi Sukma Wijaya)

Waskita Beton Precast Targets Rp 3t in New Contracts in Q1

BY :SARAH YUNIARNI

JANUARY 31, 2017

Jakarta. Waskita Beton Precast, a listed subsidiary of state-controlled builder Waskita Karya, has set a target to secure Rp 3 trillion ($224 million) in new contracts in the first quarter of this year, the company's president director said on Tuesday (31/01).

Waskita Beton – which produces precast concrete structures for toll roads, bridges and buildings – has secured new contracts worth Rp 1.4 trillion in January and targets Rp 800 billion more in February. It expects to rack up another Rp 800 billion in March.

The company was contracted in January to provide precast concrete structures for infrastructure projects, including the Mesuji-Lampung toll road, Kayuagung-Palembang-Betung toll road and Pematang Panggang toll road in South Sumatra, all of which are integrated into the Trans-Sumatra Highway Project.

In February, the company secured contracts to work on the Krian-Legundi-Bunder toll road project in East Java and in March, it will work on the Jakarta-Cikampek toll road.

The company has set a target to secure Rp 12.3 trillion in new contracts this year, up 55.69 percent from last year.

It has carried over contracts worth Rp 10.3 trillion from last year.

Waskita Beton has set aside Rp 1.9 trillion for capital expenditure this year, up 72.73 percent from last year. It will be allocated to the development of two new precast plants – in Kalimantan and Sumatra.

"The company's capex will be funded from the proceeds of our IPO [initial public offering] last year and from bank loans," Waskita Beton Precast president director Jarot Subana told the media on Tuesday.

Waskita Beton still has Rp 3.7 trillion from the total proceeds of its Rp 5.1 trillion share sale last year.

With the addition of two new precast plants, the company will have 12 precast plants in total with total capacity of 3.2 million metric tons per year.

The company's existing 10 precast plants have a total production capacity of 2.65 million tons a year. There are two in South Sumatera, one in East Java, six in West Java and one in Central Java.

Shares of Waskita Beton Precast, which trade under the WSBP stock ticker on the Indonesia Stock Exchange (IDX), closed 0.58 percent higher at Rp 585 on Tuesday.

New Directors

In related news, Waskita Beton Precast also appointed Didit Oemar Prihadi as technical director, which is a new post created in the company, according to the outcome of its annual general shareholder meeting on Tuesday.

Didit previously served as president director of Waskita Karya Realty, a property unit of Waskita Karya.

The full list of directors that was approved by the general shareholder meeting are as follows:

President director: Jarot Subana

Chief financial officer: Antonis Yulianto Nugroho

Operations director: Agus Wantoro

Technical director: Didit Oemar Prihadi

Independent director: Budi Setyono

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