Net Profit in 2018 grew 52.89%
Total Assets in 2018 grew 29.65%
JAKARTA – (ACN Newswire) – PT WIJAYA KARYA (Persero) Tbk [“WIKA”] announces a net profit of Rp2.07 trillion for financial year 2018, up 52.89% from Rp.1.36 trillion posted in financial year 2017.
WIKA’s sales (excluding joint operation projects/KSO) in 2018 were Rp31.16 trillion, a 19.03% increase compared with Rp26.18 trillion achieved in the previous financial year.
The largest contributor to revenue was the infrastructure and building sector, followed by energy and industrial plant, industry, and property, respectively.
The increase in net profits and sales was due to improved efficiencies in several projects through the adoption of new technologies and innovations. These technologies, such as the Building Information Modelling (BIM) and Web CYCLONE simulation, were used in development of the New Oecusse Airport, among other projects.
Net Profit Margin (NPM) in 2018 rose to 6.65% compared with 5.18% achieved in 2017.
The positive performance led to Rp2.72 trillion in positive cash flow from operating activities. In an optimistic note Tumiyana, President Director of WIKA said, “The achievements strengthened WIKA’s confidence to achieve its targets in 2019.”
Total assets also grew positively by 29.65% to Rp59.23 trillion as at 31 December 2018 compared to Rp45.68 trillion recorded a year ago.
“WIKA’s performance in 2018 showed that we are on-track in terms of efficiency and we still have the potential to grow further, both financially and in the number projects in our portfolio. We are grateful that WIKA has been entrusted to manage numerous strategic projects, thus giving us ample opportunity to grow,” added Tumiyana.
In terms of financial ratios, the Company’s interest-bearing debt over equity (gross gearing ratio) was relatively low at 0.79 times against a maximum debt threshold of 2.5 times.
The Company’s interest-bearing debt less cash and cash equivalents over equity (net gearing ratio) is -0.02. This figure means that WIKA’s cash and cash equivalents of Rp13.97 trillion were higher than its interest bearing-debt of Rp13.59 trillion.
Moreover, WIKA continued to add new project contracts to its portfolio in road infrastructure, buildings, and ports. The Company was selected to work on the Pekanbaru-Padang Road project worth Rp8.68 trillion, Mixed-used Building in Senegal worth Rp3.50 trillion, Kijing Terminal worth Rp2.49 trillion, and Sultan Hasanuddin Airport’s Terminal and Apron worth Rp2.42 trillion.
Multiplier Effect of the Building Information Modelling (BIM)
One of the factors that facilitated WIKA’s good performance in financial year 2018 was its deployment of building information modelling (BIM) software to improve work efficiency, effectiveness, and cost.
BIM, as adopted by WIKA, is a engineering tool in digital construction that offers benefits in cost, quality, and efficiency. The software suite is able to simultaneously carry out multiple phases of engineering planning, from designing, modelling, visualization, and simulation.
In 2018, WIKA initially applied the BIM technology for 2 strategic projects before taking on 7 other strategic projects and another 14 projects. The Group also proceeded to execute BIM Level 2 processing in 1 pilot project, which received PII certification.
One of the benefits of BIM software is its ability to detect potential design issues in projects, as was the case in the Serang-Panimbang Toll Road, Pekanbaru Toll Road, Mandiri University, and Sukamahi Dam. Early detection helps project teams to discover and correct potential issues from a project’s start.
Following its success in 2018, WIKA’s BIM software enables the Company to adopt new strategies to face challenges in 2019. In its first year of deployment, the software helps WIKA to win 2 international awards and is expected to offer further real benefits in this year.
WIKA believes that the BIM software can process a majority of projects at level 1 maturity. WIKA also plans to expand the use of BIM software by all employees and the public through the BIM Academy and publications.
The advantage of WIKA’s BIM deployment is its open-program nature, in that teams within WIKA can adopt other BIM software as needed. This flexibility is an advantage for WIKA as not only the BIM software can detect clashes, but it can also aid in correcting designs before construction begins.
WIKA’s BIM deployment also adopts survey software that can clarify and help to correct designs by matching it with the Bills of Quantity (BoQ). The resulting design report is more accurate and actual. The combination of such features results in optimisation and cost efficiencies in projects currently underway.
Further Overseas Expansion
One of the Company’s most remarkable achievements in financial year 2018 was its further expansion overseas. Currently, WIKA has presence in 10 countries: Timor-Leste, Malaysia, the Philippines, and Myanmar in Southeast Asia; Niger, Nigeria, Senegal, and Algeria in Africa; Dubai, United Arab Emirates in the Middle East; and Taiwan in East Asia.
WIKA has sent no less than 3,570 workers, or “ambassadors,” in the Company’s jargon, to work in its overseas projects in 2018 and 2019. Algeria is the largest recipient of the Company’s ambassadors where 1,800 people constructed 5,000 lodgement units in 4 cities: Harrach, Baraki, Ain Defla, and Khemis Miliana.
In addition to Algeria, 120 of WIKA’s ambassadors in Africa are in Niger to work on the Presidential Palace Project (30 in 2018; 90 in 2019). In Nigeria, the Company has 150 ambassadors (2019) working on the Tin Smelter Construction Project. Another 500 ambassadors (2019) are working on the Mixed-use Building Project in the Goree, Senegal.
In the Middle East, 100 of the Company’s ambassadors have contributed in the construction of the Bateen al-Samar Villas in Dubai, United Arab Emirates. In East Asia, WIKA has expanded to construct Taiwan’s Kinmen Bridge and Dajiang Bridge worth US$7 million and US$21 million, respectively. Both cable-stayed bridges employed 100 ambassadors (25 in 2018; 75 in 2019).
Southeast Asia is equally potential market for WIKA as the rest of the world. In 2018, Timor-Leste was the largest recipient of our ambassador in Southeast Asia, where 600 people worked on projects such as the Manatutu Road, Comoro Bridge, Soilbada Bridge, Oecusse International Airport, and Natarbora Road Rehabilitation.
Other neighbouring destinations of Indonesia’s ambassadors are Malaysia, taking in 150 people (25 in 2018; 125 in 2019) to construct the Limbang Cable-stayed Bridge in Sarawak; the Philippines, where 25 ambassadors worked on the Clarin Bridge Reconstruction Project (5 in 2018; 20 in 2019); and Myanmar, where 25 ambassadors (20 in 2018; 5 in 2019) worked on the Maubin-Pyapon Road Rehabilitation project.
Update on the Jakarta-Bandung High Speed Railway
Coming into the First Quarter of 2019, the Jakarta-Bandung High Speed Railway (Kereta Cepat Jakarta Bandung, KCJB) has achieved positive progress. This was marked by the completed acquisition of 131.34 km of land or 92.3% of the project’s total length. The remaining 10.96 km will be acquired as soon as possible course and will be used for public and social facilities. The route will be connected by four stations: Halim, Karawang, Walini, and Tegalluar Bandung.
Construction of Southeast Asia’s first high speed railway project has reached 8.46% in the First Quarter of 2019. The project’s milestones include the completion of 8 out of 13 tunnels along the Jakarta-Bandung route with details as follows:
1. Tunnel 1: completion of the diaphragm wall and entrance foundation excavation;
2. Tunnel 2: construction of tunnel inlet access road;
3. Tunnel 4: excavation has reached 55 meters;
4. Tunnel 6: completion of tunnel access road and outlet side slopes;
5. Tunnel 8: excavation has reached 108 meters;
6. Tunnel 10: curtain to inlet and interception tunnel are under construction; total length is 322.5 meters;
7. Tunnel 11: completion of Site Office at tunnel outlet;
8. Walini Tunnel: excavation has reached 242.2 meters;
9. Completion of bore pile at relocated LRT location, pile cap is under construction and piers are prepared for construction at 94 sites;
10. Completion of 581 bored piles and pouring of pier #32 at the Brigif Elevated section.
In addition, temporary facilities between Jakarta and Bandung have also been constructed, such as the WIKA Batching Plant, Sinohydro Batching Plant, CREC Batching Plant, Sinohydro Casting Yard, WIKA Casting Yard, and CREC Rebar Workshop.
“Work on the Jakarta-Bandung high speed railway is being accelerated so that construction is completed on time. In 2019, construction progress is targeted to reach 60%,” added Tumiyana.
Leading in Dam Projects
In the last five years, the Government has pushed for construction of 65 dams, consisting of 16 dams currently under construction and 49 new dams. The project is part of the Government’s effort to achieve water resilience and food sovereignty.
Once all 65 dams have been constructed, the total reservoir volume in Indonesia will be 19.1 billion cubic meters, up from 12.6 billion cubic meters contained in 230 dams currently in operation.
In 2018, WIKA has secured five dam projects across the Nusantara with an estimated total value of Rp4.32 trillion. The dams are the Sadawarna Dam in West Java, Komering II Dihaji Dam in South Sumatra, Tugu Phase II Dam in Trenggalek, East Java, Randugunting Dam in Central Java, and Manikin Dam in Kupang, East Nusa Tenggara.
The projects strengthened WIKA’s position as one of the largest State-owned Enterprises that has constructed no less than 19 dams in its project portfolio. These dams are, among others, the Jatigede Dam in West Java, Keureto Dam in Aceh, Passeloreng Dam in South Sulawesi, Kuwil Kawangkoan Dam in North Sulawesi, Kuningan Dam in West Java, Karian Dam in Banten, Cipanas Dam in West Java, Bendo Dam in East Java, Sukamahi Dam in West Java, Sei Gong Dam in Riau, Pamukullu Dam in South Sulawesi, Tugu Dam in East Java, and Lau Simeme Dam in North Sumatera.