Waskita's Managing Director On Merger With Hutama Karya: Wait For The Final Decision Of Shareholders

President Director of Waskita Karya Muhammad Hanugroho (center). (Theresia Agatha/VOI)

JAKARTA - President Director of PT Waskita Karya Tbk (WSKT) Muhammad Hanugroho said the company merger process with PT Hutama Karya (Persero) or HK is currently awaiting a final decision from shareholders.

The man who is familiarly called Oho said that due diligence had been carried out in recent months and the report results were already available. However, the next step depends on the shareholder's decision regarding the finalization of the merger.

"This means that we are just waiting for the decision to come to an end. More or less, yes, it means the shareholder side we are waiting for for the final decision," Oho said at a Public Expose at the Waskita Heritage Building, Jakarta, Tuesday, November 26.

Oho revealed that the planned merger between Waskita Karya and Hutama Karya was an initiative of shareholders, in this case the government through the Ministry of State-Owned Enterprises (BUMN).

In the integration scheme, the government's ownership of Waskita Karya, which is currently around 75.34 percent, will be transferred to Hutama Karya. Despite changes in ownership, Waskita Karya's entity will continue to operate as usual.

"Of course I say that this entity will still exist. Only in terms of ownership, which was previously possibly Waskita Karya was direct by the government or the Republic of Indonesia, earlier, if I'm not mistaken, around 74 percent of it would later be handed over to Hutama Karya," he said.

He said the plan to merge with Hutama Karya was aimed at nourishing the company through operational restructuring, finance and improving human resource competence (HR).

The merger process is expected to accelerate the recovery of WSKT by increasing the number of new projects and optimizing assets. In addition, the efficiency of operational costs and capital expenditures will continue to be pursued in a sustainable manner, with a focus on investing in the core business.

According to Oho, strengthening financial capacity is also a priority, especially in solving debt restructuring and working capital. He emphasized the importance of maintaining creditors' expectations and ensuring smooth business operations.

"This means that twice we have restructured, of course from the banking sector we will think about the extent to which Waskita can deliver this second phase of restructuring," he said.

Later, competency standards in the construction service business will also be improved and the merger process is expected to facilitate decision making and open up career development opportunities and improve HR competence through the talent mobility program.

Previously, Minister of State-Owned Enterprises (BUMN) Erick Thohir ensured that the BUMN Karya merger would not interfere with the implementation of assignments from the state to state-owned companies in the construction sector.

Erick also said that later seven BUMN Karya would be consolidated into three mothers. According to Erick, this consolidation is part of the restructuring for future acceleration.

Furthermore, Erick revealed that the consolidation of BUMN Karya had been discussed together with the Minister of Public Works (PU) Dody Hanggodo.

"Earlier we talked about explaining that the seven SOEs will later be covered by three parents. So, we are only restructuring this, it will not interfere with assignments and acceleration," said Erick at the Ministry of SOEs Office, Jakarta, Friday, November 15.

As for the plan, PT Waskita Karya (Persero) Tbk will enter PT Hutama Karya (Persero). Then, PT Adhi Karya (Persero) Tbk with Brantas Abipraya and Nindya Karya. Third, combining PT Pembangunan Perumahan (Persero) or PTPP with PT Wijaya Karya (Persero) Tbk.