WIKA Conveys The Latest Developments Regarding Merger Of Seven BUMN Karya

BOGOR - PT Wijaya Karya (Persero) Tbk (WIKA) conveyed the progress of the business unification plan or merger with PT PP (Persero) Tbk. (PTPP). Currently, the company is still discussing with BPI Danantara and other SOEs regarding the merger.

WIKA Senior Manager Corporate Relations William Lie said the merger process plan was also through an independent institution study. However, regarding the time, the company completely handed over to BPI Danantara.

"We have been meeting almost every week together. We have also collected the desired data for this integration process. All studies have been submitted, if when it is more fitting to the Danantara," William told the media crew at Sukamahi Dam, Bogor Regency, West Java, Wednesday, November 26.

William said the company really wanted the merger between BUMN works to happen. Moreover, he said, this is to reduce unhealthy competition in terms of tender between BUMN Karya.

According to him, BUMN Karya often competes for tenders by providing beneficial project value for project owners.

"So if this integration happens, for us the competition process will be healthier, that's one. Then secondly from the equity side, because the equity-equity or capital has been put together, it should be better too," he said.

In addition, with large capital, William said, WIKA can also work on projects with a jumbo contract value.

After the merger process with other BUMN works occurs, he continued, the company will focus on the Engineering, Procurement and Construction (EPC) business or the construction sector.

He considered that currently the WIKA portfolio is indeed an average business in the EPC sector or construction.

"WIKA itself, indeed we are strong from scale expertise, yes, work experience at the EPC. So, if you look at the portfolio, the variety of work, especially at the EPC. That may be arguably the biggest WIKA, the most experience," he explained.

To note, BP BUMN together with Danantara Indonesia plans to merge the current state-owned enterprises.

The goal is that each company can focus according to its specialities.

The seven SOEs that will be merged are PT Waskita Karya (Persero) Tbk, PT Hutama Karya (Persero), PT Brantas Abipraya (Persero), PT Nindya Karya (Persero), PT Adhi Karya (Persero) Tbk, PT Wijaya Karya (Persero) Tbk and PT Pembangunan Perumahan (Persero) Tbk.

The plan is for PT Waskita Karya (Persero) Tbk to join PT Hutama Karya (Persero). Then, PT Adhi Karya (Persero) Tbk will become the holding holding for Brantas Abipraya and Nindya Karya. Third, combining PT Pembangunan Perumahan (Persero) or PTPP with PT Wijaya Karya (Persero) Tbk.