Erick Thohir Targets Waskita Karya's Market Capitalization To Double By 2025

Minister of SOEs, Erick Thohir. (Photo: Doc. Ministry of SOEs)

JAKARTA - SOE Minister Erick Thohir targets PT Waskita Karya (Persero) to double in terms of market capitalization. According to Erick, Waskita Karya's transformation is currently on the right track.

Furthermore, Erick believes that Waskita Karya's hard work, which is already on track in its transformation efforts, will continue to encourage an increase in the internal rate of return (IRR) and strategic investments to strengthen capital.

"I am optimistic that Waskita Karya can achieve its transformation target in 2025, namely 2x market cap growth and 3x EBITDA," he said in an official statement, quoted Wednesday, April 20, 19.

Furthermore, Erick said that the transformation carried out by Waskita Karya was part of the overall transformation of SOE (BUMN) Karya.

"We already have a roadmap for transforming our state-owned enterprises. We are improving our portfolio and doing re-grouping, as well as consolidation so that our state-owned enterprises can have specialization and expertise in line with the construction industry regulations at the Ministry of Public Works and Public Housing. It is not a generalist business, let alone 'Palugada'," he said.

On this occasion, Erick also conveyed the importance of infrastructure development, as well as the role of the government and the private sector.

"Infrastructure development is the key to economic progress and increasing competitiveness by reducing our logistics costs, which are currently still 23 percent," he said.

For this reason, Erick said that the government was present. Where during the administration of President Joko Widodo, the government has built 1,900 km of toll roads connecting both Trans Java, Trans Sumatra, and several in Kalimantan and Sulawesi.

"But the role of the private sector is important to accelerate development and improve operations," he said.

In line with that, the President Director, PT Waskita Karya, Destiawan stated that the company's financial health has been going well through eight streams with the support of 21 banks for the restructuring of the parent debt which has been achieved 100 percent in 2021.

Meanwhile, the debts of the subsidiaries, said Destiawan, are targeted to be fully completed by 2022.

"Strategic partnerships, such as with the Indonesia Investment Authority (INA), are strategies developed by Waskita to accelerate the completion of a number of toll roads, and strengthen working capital for Waskita projects, thereby helping to achieve good growth with a positive trend," said Destiawan.

For your information, last Thursday, April 14, 2022, INA and Waskita Karya announced a strategic investment cooperation for the Trans Java Toll Road: Kanci-Pejagan Toll Road and Pejagan-Pemalang Toll Road.