PIKIRAN RAKYAT - President Director of PT Wijaya Karya (Persero) Tbk, Agung Budi Waskito, revealed that his company has still losing money since 2023 due to the Jakarta-Bandung High-Speed Train (KCJB) project aka Whoosh.

He said that the losses due to Whoosh forced the issuer with the WIKA stock code to issue bonds. In addition to interest expenses, WIKA is also depressed because PT Pilar Sinergi BUMN Indonesia (PSBI) is losing money as well.

WIKA is part of the Indonesia SOE consortium at PSBI, which is the controlling shareholder in PT Kereta Cepat Indonesia (KCIC). In PSBI, the biggest burden must be borne by PT Kereta Api Indonesia (KAI) as the leader of the consortium.

PSBI is a subsidiary of PT Kereta Api Indonesia (KAI), which owns the majority of shares of KCIC: 60 percent. Meanwhile, WIKA owns 38 percent of the shares.

“We are indeed the biggest (loss), because in the completion of the KCJB project, from only the participation, we have IDR 6,1 trillion,” said Agung Budi Waskito.

“Then the dispute is around IDR5,5 trillion. So it’s almost IDR12 trillion,” he added, during a Hearing Meeting (RDP) with Commission VI of the DPR, Wednesday, Juli 10, 2024.

WIKA revealed significant losses for the company due to the High-Speed Train Whoosh. Dok. kcic.co.id.

Throughout 2023, the state-owned construction company suffered losses of IDR 7,12 trillion. WIKA’s losses increased greatly compared to 2022 which amounted to IDR 59,59 billion.

WIKA’s losses are much greater than the losses experienced by other state-owned enterprises, such as PT Waskita Karya (Persero) Tbk, which in 2023 recorded a loss of IDR 3,77 trillion.

Agung Budi Waskito said that two factors were the main causes of the losses are interest expenses and other expenses. Interest expenses increased due to the company having to issue debt security (bonds) to finance the Whoosh mega project. Meanwhile, other expenses incurred include provision expenses and administrative expenses from debts obtained by WIKA.

“These other expenses include: starting in 2022 we have recorded losses from PSBI or high-speed trains," he said.

According to Agung Budi Waskito, WIKA itself deposited a large amount of capital into the project through PSBI, the funds disbursed reached IDR 6,1 trillion.

“The participation (for the Jakarta-Bandung High-Speed Train Project consortium) alone has been IDR 6,1 trillion). Then those who are still in dispute or have not been paid are around IDR 5,5 trillion, so it is almost IDR 12 trillion,” he said.

However, the problem is that the funds deposited into PSBI are obtained by WIKA through the issuance of debt. So, companies have to be burdened with high-interest expenses.

“To meet this money, WIKA inevitably has to take out loans through bonds,” said Agung Budi Waskito.

In WIKA’s 2023 financial statement, several company’s expenses were indeed recorded to have swelled. Most likely, other expenses increased by 310,16 percent to IDR 5,20 trillion and financial expenses increased by 144,70 percent to IDR 3,20 trillion.

Illustration money.

WIKA also asked for the 2025 State Capital Participation (PMN) of IDR 2 trillion to help strengthen working capital. The PMN will later be allocated for additional capital for strategic projects that are still ongoing and new next year.

"Wika is one of the main players in the completion of the PSN (National Strategic Project)," said Agung Budi Waskito.

He said that the total PMN of Rp2 trillion will be used to complete two projects in the National Capital City (IKN), East Kalimantan. The two projects include the IKN Central Government Core Area Road (KIPP) project and the construction of the IKN Water Treatment Plant (IPA) Interconnection Network, Sepaku, North Penajam Paser, East Kalimantan.

In the KIPP IKN Road project, WIKA will allocate a budget of IDR 1.3 trillion. Meanwhile, for IPA, IKN will use PMN of IDR 401 billion.

In addition to projects in IKN, the rest of PMN will also be allocated for several projects that are being worked on by the company. The projects are in the form of the Construction of the Serang-Panimbang Toll Road Section II, the Semarang-Demak Toll Road, the Hang Nadim Airport Terminal II Project, the Construction of LPG Refrigerated Tuban Phase II, the Revitalization of Gospier Pier at the Surabaya Integrated Terminal, and the Construction of a New Jetty I at the Manggis Integrated Terminal.

Description: The President Director of PT Wijaya Karya (Persero) Tbk, Agung Budi Waskito, revealed significant losses for the company due to the Jakarta-Bandung High-Speed Train project, known as Whoosh. In 2023, WIKA experienced a loss of IDR 7.12 trillion, primarily due to high-interest expenses and additional costs associated with the project. Despite these challenges, WIKA is seeking IDR 2 trillion in State Capital Participation for 2025 to strengthen its working capital and complete ongoing strategic projects.*** (Politeknik Negeri Bandung/Sintia Yuliana)