WIKA Successfully Relieved Total Debt Of IDR 6.26 Trillion

JAKARTA - PT Wijaya Karya (Persero) Tbk (WIKA) managed to reduce total business debt both flowering and with partners of IDR 6.26 trillion during the second quarter of 2024 to the second quarter of 2025.

With the payment of the debt of Rp6.26 trillion, the company's total debt is currently Rp33.6 trillion.

WIKA President Director Agung Budi Waskito detailed that WIKA managed to pay the principal of sukuk bonds and bank creditors' debts of IDR 5.60 trillion from the second quarter of 2024 to the second quarter of 2025, with funding sourced from operational cash.

"This step reflects the Company's disciplined and independent operating cash management, as well as the Company's consistent efforts to continue to reduce the amount of debt," he said in an official statement, Wednesday, July 30.

The company, continued Agung, has also succeeded in reducing business debt to partners of IDR 660 billion until the second quarter of 2025 compared to the same period the previous year.

"Repairs on the cash side are also strengthened by streaming to accelerate collection of problematic receivables," he said.

By forming an Asset Management Division and intensifying the litigation and mediation process, continued Agung, WIKA managed to reduce total business receivables by Rp1.33 trillion during the second quarter of 2024 to the second quarter of 2025.

"This contributes directly to liquidity and reduces dependence on external funding," he said.

In addition to focusing on improving the financial structure, since 2023 the company has also stopped using the supplier loan scheme facility, which previously was often used by the company as a source of project funding.

"This termination is in line with the Company's commitment to complete the project with a term without burdening the balance sheet with short-term obligations," he explained.

In the project selection substream, continued Agung, the company is consistently selective in conducting project selection of new job contracts based on monthly payment or monthly progress payment.

Currently, the company's monthly payment-based current contract has reached 96 percent of the company's entire running contract. This figure is up sharply from 35.5 percent in 2019.

"This mechanism helps keep the Company's cash flow healthy, while preventing accumulated debt to suppliers and third parties," he said.

In terms of business sustainability, increased governance and comprehensive efficiency also continue to be carried out through a stream of decreasing operating expansion, including through the implementation of ERP, lean construction, digitizing the business process and the Negative Employer Growth policy which has succeeded in reducing the operational expenditure cost burden to Rp. 18 billion per month.

The application of these eight substreams is an important part of the transformation carried out by WIKA. Decreased business debt and interest-bearing debt, proper cash management, increased governance and decreased opex through the implementation of lean construction is the Company's top priority in ensuring healthier and stronger business sustainability," he said.