WIKA Building: Modular Development Progress For Construction Worker Residential At IKN Capai 60.03 Percent

JAKARTA - PT Wijaya Karya Bangunan Gedung Tbk (WEGE) KSO is currently accelerating the construction of construction workers in the State Capital (IKN) by building 22 flat towers. As of November 2022, the progress of the construction worker's residential construction reached 60.03 percent of the 55.31 percent planning.

This shows positive progress from planning. This IKN worker housing project itself is worth IDR 567 billion with its implementation time starting from August 29, 2022 to January 20, 2023 or 145 calendar days.

In this project, WEGE works on design and build, landscape and hardscape work. Of the 22 towers, WEGE worked on 12 towers using 1,739 units of modular technology which includes MEP and room facilities such as beds and others.

Director of Operations I WEGE Bagus Tri Setyana explained that the construction of construction workers' residences using Modular technology can later be replaced after the construction of IKN Nusantara is completed.

"With Modular WGF technology from WEGE, it has been tested, especially for very fast work and in certain areas. And Modular WGF WEGE has steel construction but can knock down. This WEGE product is usually used for site office in projects that we handle, so after project work is completed, the site office we use can be folded back. This means that if later the IKN Nusantara project is completed, this flat can later be replaced," explained Bagus in a virtual public expose, Thursday 8 December.

For information, WEGE recorded a positive performance based on the Financial Statements as of September 30, 2022 (unaudited), until the third quarter of WEGE earned a profit of IDR 92.76 billion and an income of IDR 1.67 trillion.

The revenue achievement was driven by revenue from construction of Rp1.49 trillion, investment & concessions of Rp39.47 billion, an increase of 56 percent year on year and the modular industry of Rp148.44 billion, an increase of 81 percent year on year (yoy).

"This shows that the concession business and the modular industry, which are part of the Company's business strategy (backward & forward), succeeded in supporting the Company's (Core Business) revenue," said WEGE President Director Hadian Pramudita.

Meanwhile, cash and cash equivalents as of September 30, 2022 amounted to IDR 428.10 billion, total equity was IDR 2.39 trillion and total assets amounted to IDR 5.25 trillion.

According to Hadian, although the Company's revenue contracted YoY, the Company was able to maintain the Gross Profit Margin at the level of 8.59 percent, an increase compared to the previous year. With Operting Profit Margin at the level of 5.34 percent and Net Profit Margin at the level of 5.54 percent supported by other revenues.

Another condition that keeps WEGE giving its best performance is in terms of the Rasio Leverege, with the current DER WEGE of 1.20x, the Gearing Ratio of 0.30x, and the Current Ratio of 2.03x showing WEGE has a healthy liquidity and fundamental level.