Until August 2017, WIKA holds a New Contract of Rp30.76 Trillion

INDUSTRY.co.id - Jakarta - Until August 2017, PT Wijaya Karya Tbk (WIKA) has a new contract of Rp30.76 trillion. The amount is equivalent to 71.12% of the company's target in 2017, which is Rp43.25 trillion.

The largest contribution came from the infrastructure, building and property segment, amounting to Rp20.66 trillion. Meanwhile, the energy and industrial plant sustained a new contract of Rp6.45 trillion. The remaining contracts are obtained from industry segments.

Thus, WIKA's total contracts until August 2017 reached Rp94.07 trillion. This figure has reached 91.72% of the contract target of this construction company throughout 2017, which is Rp103, 25 trillion.

The majority of projects undertaken by WIKA are projects owned by BUMN or BUMD. Not only working on projects within the country alone, WIKA has also expanded by working on projects abroad by building apartments in Algeria.

As a result of many project contracts, WIKA's financial performance is also affected. Therefore, WIKA uses cash for initial project financing. This happens, among others, when WIKA is working on toll road projects.

This ultimately creates a depressed cash position. In addition, the financing obligations of this construction company become higher. However, WIKA management said it is a consequence of the growth of contracts that have been achieved by the company.