JAKARTA - PT Wijaya Karya (Persero) Tbk plans to remove its subsidiaries and grandchildren to anticipate a decline in the construction market due to changes in the direction of government policies.
WIKA President Director Agung Budi Waskito admits that this year is indeed quite challenging for the work sector company. Therefore, WIKA will optimize the group portfolio by rearranging its children and grandchildren.
Agung said this step would make the company only focus on the construction and engineering, procurement, construction, and commissioning (EPCC) business.
"This year, we will reduce the number of grandchildren so that there are not too many children's rearrangements (companies), so we will focus on the construction business and the EPCC only. Apart from this, we will delete it," he said in a hearing (RDP) with Commission VI DPR RI, Jakarta, Wednesday, March 5.
Not only that, Agung added that the company will also carry out business operations efficiency by targeting a minimum reduction in operating costs of 15 percent.
In addition, Agung said that the company will also carry out remuneration efficiency in the form of cutting official allowances, official travel, and cutting the company's management facilities.
Even so, Agung emphasized that his party would not terminate employment (PHK) or reduce employees.
"Until now, we have maintained all existing efforts, but we make efficiency, be it marketing, sponsorship, consultants, and so on," he said.
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On the other hand, Agung said the decline in the construction market this year also encouraged the company to take strategic steps to overcome challenges and seek business continuity. One of them is to release their investment assets, from toll roads to the Drinking Water Supply System (SPAM).
"We will divest in 2025, both on toll roads and other participations. In addition to reducing the investment burden, we also provide cash funds to strengthen capital and settle obligations," said Agung.
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