Wijaya Karya Gedung (WEGE) Targets New Contracts Worth IDR 5.07 Trillion in 2024

February 20, 2024, 02.25 AM | Reporter: Amalia Nur Fitri

ILUSTRASI. Heavy equipment operates at the Dhoho Airport construction project in Kediri, East Java, Tuesday (6/6/2023). The national strategic project, the first airport in Indonesia to be built with private financing, which is targeted for completion at the end of 2023, will be operated by PT Angkasa Pura I, while the implementing business entity and asset owner PT Surya Dhoho Investama will act as airport manager. BETWEEN PHOTOS/Prasetia Fauzani/cellphone.

CORPORATE STRATEGIC - JAKARTA. The state-owned infrastructure issuer PT Wijaya Karya Bangunan Gedung Tbk (WEGE) is optimistic and positive about this year's business prospects.

Corporate Secretary of PT Wijaya Karya Bangunan Gedung Tbk, Purba Yudha Tama, explained that this confidence is reflected in the 6% increase in the infrastructure budget to IDR 423.4 trillion this year.

This is in line with the direction of infrastructure policy that emphasizes the development of economic driver infrastructure, basic services and strategic projects, IKN development, mapping and strengthening access that supports digitalization and encourages business entity participation in the KPBU scheme.

"This can be an opportunity for WEGE to pursue target projects, especially government projects, especially strategic projects, IKN development, and the development of digital-related infrastructure becomes a market opportunity for WEGE because WEGE already has experience in building such infrastructure or buildings," Yudha explained to Kontan, Monday (19/2).

He continued, from the concession business side, WEGE also targets Unsolicited KPBU, especially in the health and education sectors. Yudha believes this is in line with the government's agenda for the infrastructure sector in 2024.

Looking at these plans and prospects, WEGE is targeting new contracts worth IDR 5.07 trillion this year. The majority of these new contract targets are planned to come from the government at 54.2%, SOEs/Regional SOEs at 26.7%, and the private sector at 19.1%.

He did not deny that projects from the government will be the most dominant target in 2024. However, for the private sector, they are still in a wait-and-see mode because 2024 is a political year.

"For the January 2024 acquisition, WEGE has already secured a contract worth IDR 169.68 billion, consisting of the BMKG InaTews Building and the Modular Office Keet," Yudha explained.

Meanwhile, for the 2024 net profit target, WEGE aims to grow by more than 20% from the 2023 realization. WEGE has not yet displayed the 2023 financial report.

Furthermore, the capex for this year is planned to be allocated at IDR 254.709 billion, consisting of Capital Employed (Capital Participation for the KPBU, BOT scheme) amounting to IDR 163.849 billion, and Investment (Digital transformation program, 4.0 construction, and Net Zero Emission) amounting to IDR 90.860 billion.

"The plan for the use of this capex will certainly consider the construction conditions, both domestic and global economic conditions in 2024," he said.