No Longer Get Banking Support, Toll Road Divestment Becomes Waskita Karya's Piles

JAKARTA - PT Waskita Karya (Persero) Tbk (WSKT) said the company no longer received credit facility support from banks.

Thus, toll road divestment is the main focus of WSKT to pay off obligations in the context of financial restructuring.

WSKT also targets the gradual sales of several toll roads by 2027 to maintain cash flow and asset value.

Waskita Karya President Director Muhammad Hanugroho explained that the company plans to release the two toll roads by 2025 and targets a settlement of transactions in December.

In addition, a number of other sections are in the process of completing construction to improve connectivity and asset value.

"Indeed, we plan to release two segments this year and we hope that this December can be completed. Furthermore, there are indeed several sections that are in the process of achieving connectivity, so that the asset valuation can be achieved," said Hanugroho at the Public Expose 2025, Tuesday, November 4.

Some of the projects being pursued include the Bogor 'Ciawi' Sukabumi (Bocimi) segment which was extended to West Sukabumi for 11 kilometers, as well as the Kawiagung 'Betung project which is now being carried out by Hutama Karya.

The company hopes that the increase in connectivity can encourage the recovery of traffic flow and asset valuation.

A number of sections in Trans Java are also being optimized, including the Solo 'Yogyakarta and Bawen' segments, which are expected to operate at the end of December 2025.

"Right now, the Trans Java process is a connection until Yogyakarta has reached Prambanan, the traffic contribution is quite large," he said.

WSKT is also targeting the release of the Pemalang and Pasuruan 'Probolinggo' sections next year, as well as four other minorities such as Depok' Antasari which are considered to have quite good traffic performance.

In addition to toll roads, the company has also divested other assets, including the Minihydro Power Plant (PLTM) with a capacity of 10 megawatts and properties in Bekasi which are expected to strengthen cash flow.

"If we look at the obligations in MRE, the most major source is indeed on our toll road. That's why we are very concerned about maintaining the valuation of toll assets," he explained.

Hanugroho admits that the toll road business has a thin profit margin with a long return period, thus requiring additional funding to close the financing gap.

"For example, talking about the toll road, right, long term investment and the return is also quite low. So, if you look there there is a gap in financing, it is quite large, so we have to top up. Where did the top up come from? From our operations," he explained.

Menurut Hanugroho, langkah divestasi aset merupakan strategi utama perusahaan untuk memenuhi kewajiban kepada kreditur di tengah keterbatasan sumber pembiayaan baru.

"Saat ini, dengan kami tidak memiliki bank facility yang terus terang tidak ada exposure baru dari perbankan ataupun kreditur, itu juga menyulitkan kami untuk proses penyehatan secara cepat. Nantinya, di end of the day kami tidak akan punya jalan tol," pungkasnya.

According to Hanugroho, asset divestment steps are the company's main strategy to fulfill its obligations to creditors amid limited new financing sources.

"Currently, with us not having a bank facility that frankly has no new exposure from banks or creditors, it will also make it difficult for us to recover quickly. Later, at the end of the day we will not have a toll road," he concluded.