Wika to Boost Profits by 30 Percent in 2018
Jakarta. State-controlled construction firm Wijaya Karya, or Wika, expects to post a 30 percent higher profit next year on the back of new contracts and in an effort to diversify its businesses.
This year, the company's profit target is Rp 1.22 trillion ($90.25 million), up 20 percent from last year, while the revenue target is Rp 25.75 trillion, or 64 percent more than in 2016.
Wika recorded Rp 435.9 billion in net income in the first six months, a 70 percent increase from the same period last year. The company's revenue increased by 57 percent to Rp 9.5 trillion in the same period.
"We will continue to innovate our construction projects and improve our business efficiency to have an outstanding performance record in 2018," Wijaya Karya president director Bintang Perbowo said on Thursday (17/11).
At the end of September, the company secured 90 percent of this year's contract target of Rp 103.25 trillion. It wants the value of its new contracts to increase by 24 percent next year and has so far secured three quarters of the target.
The company also plans to issue the so-called Komodo bonds — Indonesia's first rupiah-denominated global bonds — by the end of the year. The company earlier reported that it will raise around Rp 5.3 trillion ($400 million) from the Komodo bonds issuance.
Several other companies, including state-controlled toll road operator Jasa Marga and state power company Perusahaan Listrik Negara, also intend to issue the bonds.
Next year, Wika will participate in a toll road project in Bandung, West Java. Bintang said the company will partner with others in operations, but he did not elaborate further.
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