Heaptalk, Jakarta — Following years of significant financial setbacks, PT Waskita Karya (Persero), one of Indonesia’s leading state-owned construction firms, has announced its decision to refrain from undertaking new toll road projects unless explicitly mandated by the government. This strategic shift comes as the company seeks to recover from consecutive losses, including a staggering Rp3 trillion deficit recorded last year.
Muhammad Hanugroho, President Director of PT Waskita Karya, revealed the company’s new direction during a public hearing with Commission VI of the House of Representatives (DPR) at the Parliamentary Complex in Jakarta on Wednesday (5/3).
“Since 2020, Waskita has consistently reported losses, including Rp3 trillion last year. As a result, we have decided not to engage in toll road projects unless specifically assigned by the government. This marks a significant shift in our approach,” Hanugroho stated.
He attributed the company’s financial struggles to its previously aggressive project acquisition strategy, particularly its reliance on turnkey projects, where payments are deferred until project completion. While this approach initially expanded Waskita’s portfolio, it ultimately strained its financial resources.
“Waskita is returning to its core competencies. We are now more selective in choosing projects and will no longer take on turnkey projects. Our focus is on securing projects with stable financial backing to avoid further losses,” Hanugroho explained.
Despite these challenges, Waskita has set an ambitious revenue target of Rp10.8 trillion by 2025. However, the company anticipates a net loss of Rp3.9 trillion for the same period.
“Our primary target for 2025 is to achieve a positive EBITDA of Rp914 billion, up from the current Rp600 billion, even as we expect to remain in the red regarding net income,” Hanugroho added.
The company is also grappling with the divestment of nine unsold toll roads, some of which are predicted to be difficult to offload. Waskita aims to divest five toll roads by December 2025, with an estimated total divestment value of Rp5.2 trillion.
“We are actively working to expedite the divestment process. The sooner we can complete these transactions, the better, as it will help reduce our liabilities and strengthen our financial position,” Hanugroho concluded.
This strategic pivot underscores Waskita Karya’s commitment to financial prudence and operational efficiency as it navigates a challenging economic landscape. By focusing on its core strengths and prioritizing financially secure projects, the company aims to stabilize its operations and pave the way for long-term sustainability.
