Observer: The Increase In WIKA Rating Potentially Causes A Positive View Of Investors

Illustration. (Photo: Doc. Antara)

Capital market observer from the University of Indonesia (UI) Budi Frensidy said that the increase in ratings obtained by PT Wijaya Karya Tbk (WIKA) has the potential to create a positive view of investors towards WIKA.

"The increase in the rating and repayment of Sukuk certainly makes the investor's perception positive for WIKA," Budi said, quoted from Antara, Tuesday, May 21.

On the other hand, according to him, it is still necessary to ensure that WIKA's financial performance will continue to be positive in the future.

"It's still not enough to confirm that, I think," said Budi.

Meanwhile, Fixed Income and Macro Strategic PT Mega Capital Indonesia Lionel Priyadi said that WIKA's efforts to complete their responsibilities deserve appreciation.

"WIKA's efforts to complete its responsibilities and government assistance to WIKA should be appreciated," said Lionel.

On the other hand, he reminded that it is necessary to make continuous improvements, for the company's more positive performance in the future.

PT Pemeringkat Efek Indonesia (Pefindo) has increased its WIKA rating to idBB- on May 3, 2024, from the previous idSD with the prospect of being'stable'.

In addition, WIKA Securities (SBN) rankings, namely Sustainable Bonds (SR) I, II, III and Sukuk Mudharabah I, II, III also rose to idBB- from the previous idCC.

Launching from Pefindo, the rating increase reflects WIKA's actions regarding the principal payment of Sukuk Mudharabah I Phase I Series A on April 29, 2024, worth Rp. 184 billion, as well as Pefindo's optimism for WIKA's ability to strengthen financial performance, after receiving an injection of State Equity Participation (PMN) worth Rp. 6 trillion from the government.

Thus, the company's health level for the financial year 2023 also reached the 'Healthy' category.

ESG Risk Rating Terbaik

The belief in improving WIKA's performance is also reflected in Sustainanalytics as an international Environmental, Social, and Governance (ESG) rating institution that sets the ESG Risk Rating WIKA at 28.2 (Medium Risk), better than the previous score of 29.8 (Medium Risk), which is the best in the construction sector in Indonesia.

Meanwhile, the assessment is based on the implementation of good governance and high concern for the carbon impacts resulting from the construction process, which is shown by having a decarbonized roadmap to reduce carbon footprint in all regions of the company's operations.

WIKA President Director Agung Budi Waskito stated that the embedding of the predicate is a form of the company's commitment to implementing good governance and sustainability policies to create long-term value through sustainable practices in all WIKA business lines, by integrating strategies and activities into responsibility for the Environment, Social, and Company Governance.