0 State Construction Company Wika Posts 26% Rise in Profit

State construction company Wijaya Karya booked a 26 percent increase in net income last year due to rising sales, the firm said in a statement on Monday. Net income rose to Rp 461.1 billion ($47.5 million) in 2012. The figure exceeded the company’s internal forecast, earlier projected at Rp 440 billion. Sales increased 27 percent to Rp 9.8 trillion. The rise in net income boosted value of the company’s assets by 32 percent to Rp 10.95 trillion. 

Wikia’s net income is projected to rise 20 percent to Rp 555 billion this year, according to a company presentation to analysts on March 9 in Garut, West Java. Sales are forecast to rise 22 percent to Rp 11.9 trillion. The government holds a 66.3 percent controlling share in Wika, which offers integrated engineering, procurement and construction services. The firm specializes in civil engineering and construction of buildings, industrial sites and power plant facilities. 

This year, Wika has secured several large projects, including redevelopment of Terminal 3 at Soekarno-Hatta International Airport, which services Jakarta. Wika won the Terminal 3 construction work after securing a mandate from state airport operator Angkasa Pura II. The work will be done through the Indonesia-based Kawapehajaya consortium, which is led by Wika and includes builders Waskita Karya, Hyundai Engineering, Pembangunan Perumahan, Jaya Teknik Indonesia and Indolexco. 

Wika, along with its Japanese consortium partner Obayashi, is one of the leading contenders for Jakarta’s Mass Rapid Transportation project, the first phase of a commuter system that will link Lebak Bulus in South Jakarta to the Hotel Indonesia roundabout in Central Jakarta. The 15.1 kilometer-long project is valued at up to Rp 4.5 trillion, with construction expected to start in 2013 and be completed in 2016. Wika is bidding for two of the three packages being tendered. 

Wika is among several companies expected to benefit from government plans for new infrastructure projects, funded either by state budgets or in cooperation with the private sector. Shares in Wika fell 0.6 percent to Rp 1.760 in Monday trading in Jakarta. The shares have risen 18 percent since the start of this year.

source : the jakarta globe