Member Of The DPR From The PAN Faction To WIKA: Is Serang-Panimbang Toll Construction Any Good Luck?

JAKARTA - Member of Commission VI DPR RI Abdul Hakim Bafagih questioned the benefits of the Serang-Panimbang toll road project in Banten which was built by PT Wijaya Karya (Persero) Tbk. According to him, the construction of this project should be useful in driving the economic wheels of companies and communities in the Tanjung Lesung Tourism Special Economic Zone (SEZ).

"Now the tourism sector is sluggish, the development of this Special Economic Zone also requires additional costs. If for example the SEZ of the tourist area cannot develop, about the investment issued by the state for this development, there is no return or no return. Either that to companies and to economic growth around this toll road," he said, quoted from the DPR's official website, Monday, September 6.

Furthermore, according to Hakim, the construction of the toll road has a lot of homework that needs to be completed, mainly related to financing and land acquisition. He assessed that currently many state-owned companies lack creativity and innovation in overcoming financial problems so that they are very dependent on State Capital Participation (PMN).

The judge considered that there was a need for fresh air in the form of innovation in the financial system of the state-owned company.

"This is what we are asking about, so if it's not PMN, what is the solution. Because this September WIKA will issue bonds and sukuk worth IDR 2.5 trillion. The remaining IDR 1.8 trillion bonds will be used to pay off debt expired," he said.

The judge emphasized that WIKA needs creativity in finding solutions to the financial problems it faces.

"So, at PT WIKA, creative ideas need to be carried out to solve this financial problem, while currently there is still homework for the construction of this toll road," he said. According to Hakim, state equity participation (PMN) can be a last resort if WIKA fails to find a solution to financial problems.

"We want to see it first, until if it's stuck, there's nothing you can do, then PMN like it or not. Because this is like a simalakama fruit, if it's not continued, the impact will be bigger. If it continues, the state's finances will not be burdened, " he said.

He also reminded WIKA to really consider the cost and benefit ratio of the Serang-Panimbang toll road project.

"If the state spends the money, (there must be) one profit, the second has benefits for the surrounding community. Is the economy growing, whether or not the absorption of labor can be obtained, whether MSME products are empowered or not," he said.

The construction sector is one of the sectors most affected by the COVID-19 pandemic, one of which is WIKA. On June 30, WIKA posted a net profit of Rp. 83 billion, down 67 percent from the same period the previous year, which was Rp. 250.41 billion.

The decline in net profit was partly due to a decrease in company revenue by 5.13 percent yoy, from the previous Rp7.13 trillion at the end of the first semester of 2020 to Rp6.76 trillion at the end of the June period this year. The company's cost of revenue in this period also decreased to Rp6.22 trillion from the previous Rp6.46 trillion. Total operating expenses also fell to Rp35.67 billion from the previous Rp415.03 billion.

In that period, the recorded value of WIKA's assets was IDR 62.59 trillion, down from the position at the end of December 2020 which was IDR 68.10 trillion. Current assets reached Rp41.57 trillion and non-current assets amounted to Rp21.02 trillion.

Meanwhile, in the liability account, there was a decline during the first semester of 2021 to Rp45.80 trillion from the previous Rp51.45 trillion. Short-term liabilities were recorded at Rp33.11 trillion and long-term liabilities were closed at Rp12.69 trillion.

Meanwhile, the company's equity at the end of June 2021 reached Rp. 16.78 trillion, up slightly from the position at the end of December 2020 which was Rp. 16.65 trillion.