WIKA Is Considered To Need To Continue Project Work In 2024

Share illustration (Photo: dock. Antara)

JAKARTA - Mirae Asset Sekuritas Senior Investment Information Nafan Aji Gusta said PT Wijaya Karya Tbk (WIKA) needs to continue on with projects that are currently and will be carried out next year.

With the completion of the project, according to him, the company's opportunity to divest its assets will be wider in the future.

"For example, if these national strategic projects have been successfully carried out properly, of course, WIKA's opportunity to divest these assets can be wide open," Nafan said quoting Antara.

Nafan said WIKA's decision to prioritize the use of cash for working capital and payment of partners could support the completion of projects being carried out by the company.

He appreciated the company's efforts to prioritize the use of cash for working capital, however, it also reminded that sukuk payments could be made or received approval for the extension of Sukuk payments so that market confidence could be maintained.

"WIKA prioritizes cash for working capital and vendor payments, which should be appreciated, but, sukuk payments are also essential to increase trust in investors," said Nafan.

If the domestic economy continues to show progressive performance, according to Nafan, it will make asset divestment easier, so that it can support the company's future plans.

"Usually, domestic economic stability can provide benefits in increasing capital inflows," Nafan said.

Previously, WIKA Corporate Secretary Mahendra Vijaya said the company would still focus on restoring financial conditions, one of which was by maintaining the composition of projects from the government in 2024.

"We will continue to maintain the composition where government projects are at 70 percent, before COVID-19 only 30 percent. The rest, we are chasing SOEs whose capex is large and now the monthly progress payment," said Mahendra.

He said that the company's priority in using cash for working capital and payment of partners is an important step to increase project production next year.

"The decision to maintain cash flow and use for working capital and vendor payments is important to boost project production next year," said Mahendra.