Waskita Karya's Boss Is Outspoken It Takes 17 Years To Pay Off IDR 41.2 Trillion Debt

JAKARTA - PT Waskita Karya (Persero) Tbk (WSKT) is still carrying out improvements through restructuring. The company's debt as of December 2023 reached IDR 41.2 trillion.

Waskita President Director Hanugroho said from that figure, bank debt dominated with a value of IDR 26.3 trillion, followed by Working Capital Loans (KMK) IDR 5.2 trillion, IDR 5 trillion underwriting bonds, and non-guarantee bonds of IDR 4.7 trillion.

"Indeed, the total parent debt is mainly Rp41.2 trillion," he said during a working meeting (raker) with Commission VI of the DPR, at the DPR RI Building, Jakarta, Tuesday, March 19.

Furthermore, Hanugroho admitted that his company took a dozen years to pay off the debt.

"Basically, we will need at least 17 years until 2039 to settle all debts with the ability to pay interest 3.5 percent," he said.

Therefore, said Hanugroho, Waskita is currently renegotiating with banks and bond holders. Especially for bank debt, Waskita Karya is currently still in a stand position and is narrowing down on the discussion of the agreement.

"We discussed it some time ago and it has been almost a year since we are still in a stand position for the banking sector and have narrowed the discussion of the agreement," he explained.

Furthermore, Hanugroho explained that Waskita Karya had submitted a final restructuring temsheet at the end of February 2024 in connection with the change in schemes for non-guarantee bonds and guarantee facilities.

"Regarding the progress of banking restructuring, especially for Master Restructuring Agreement (MRA), we are targeting Waskita to get a signing in April 2024," he said.

In addition, he said, Waskita Karya had also renegotiated non-guarantee bond holders for four series of non-guarantee bonds from February 21 to 22, 2024.

"We renegotiate to non-guarantee bond holders in the market of IDR 4.7 trillion. Of the four series, three series have been approved with a tenor of 10 years with a headcut interest rate of 5 percent," he said.