WIKA EGMS Approves Restructuring For Sustainable Growth

Rupiah illustration (Photo: dock. Antara)

JAKARTA - PT Wijaya Karya (Persero) Tbk (WIKA) at the Extraordinary General Meeting of Shareholders (EGMS) approved the proposed restructuring. This is a transformation effort to form a growing and sustainable company.

"This restructuring was taken amidst the company's high financial condition and is a strategic step to strengthen the company's steps in running business in a sustainable manner," said WIKA President Director Agung Budi Waskito quoting Antara, Monday, October 16.

Agung explained that the restructuring method would be pursued through eight streams, including financial restructuring, improving governance and risk management, and accelerating receivable liquidation.

Then, asset recycling according to business model, refocusing portfolio orderbook, operating expansion efficiency, decreased supply chain financing balance, and strengthening capital structure.

He continued, the restructuring method was then described into the transformation principle consisting of three pillars, including focus on cash, project execution advantages and portfolio balances based on the lean organization approach, as well as risk management and digitization.

"Commitment to transformation can be seen from the implementation of the SAP platform-based Enterprise Resources Planning (ERP), selective project selection and focused on projects with a routine payment scheme, as well as the implementation of four principal on the implementation of risk management for project control and management as well as the establishment of Special Asset Management units," said Agung.

Furthermore, Agung expressed the approval of shareholders reflecting the similarity of views and support for the company's transformation steps to be able to recover, grow sustainably, and continue its work as an agent for Indonesia's development whose impact continues to be felt by the community.

"The company is committed to realizing these transformation steps, so that we can answer the trust given by the public properly," said Agung.

Meanwhile, Head of Investment Information Mirae Asset Sekuritas Roger MM said that currently restructuring is one of the right steps to overcome the financial problems of issuers (companies).

"In the future and maybe it will take quite a long time, this can certainly improve the performance of issuers," said Roger.

Regarding WIKA's stock recommendations, Roger said that for now it is certainly not an option for investors, because the company is still concerned about improving finances.

However, he continued, along with the improvement in the company's finances going forward, plus fundamental sentiment in the construction sector will be the trigger for the movement of WIKA shares.

"However, as the company's finances improve in the future and the sentiment of fundamental sentiment in the construction sector will trigger the movement of issuers' shares," said Roger.