Nike
ELITE MEMBER
- Joined
- Mar 28, 2013
- Messages
- 13,867
- Reaction score
- 24
- Country
- Location
Wika still seeking state
injection
Anggi M. Lubis, The Jakarta Post, Jakarta | Business | Mon, September 07 2015, 5:43 PM
State-run construction company Wijaya Karya (Wika) says it will proceed with its Rp 3 trillion (US$212 million) state-capital injection proposal despite the dropping of the high-speed railway project from the list of projects to be funded with the equity injection.
Wika says that for the moment it will focus on other projects on the list, including the Rp 8 trillion Kuala Tanjung industrial estate and Balikpapan-Samarinda toll road, while awaiting certainty on the medium-speed train project, which will replace the planned high-speed rail connection between the two busiest cities in the western part of Java.
On Friday, President Joko “Jokowi” Widodo scrapped the plan to build the country’s first high-speed railway and instead considered a new plan to develop a medium-speed train connecting Jakarta with Bandung in West Java.
Jokowi’s decision followed a recent recommendation by a government-sanctioned assessment team.
A day earlier, Jokowi announced that financing for the project, which could cost between $5.5 billion and $6 billion, would not involve the state budget.
This decision eliminated the possibility of Wika, which had been appointed to lead the consortium of contractors on the train project, setting aside a potion of funds it will get from next year’s state-capital injection for the mega project.
Wika corporate secretary Suradi told The Jakarta Post over the weekend that the publicly listed company would still proceed with its state-capital injection plan, saying that there were still several projects that the company planned to spend the money on. He added that the company would still be involved in the medium-speed train project, awaiting further coordination with the State-Owned Enterprises Ministry.
“We will still lead the project, but there will be no funding from the state budget. We hope the plan will be finalized soon so a feasibility study can be carried out as quickly as possible,” Suradi said.
Wika is among the state-run firms that have proposed to the State-Owned Enterprises and the House of Representatives that they receive capital injections from next year’s state budget.
Wika is seeking an injection of Rp 3 trillion, which will be used for a number of infrastructure projects the company plans to work on. This year, the government has plans to inject capital of Rp 70.73 trillion in 39 state-run companies by means of rights issues.
To prevent the government’s 65.05 percent stake in Wika being diluted, the builder will have to raise at least Rp 4.61 trillion from a rights issue next year.
Suradi said Wika would mostly use the state-capital injection for toll-road projects, a reservoir and an industrial estate.
Without the high-speed rail project, Wika would need around Rp 23 trillion for the projects, with Kuala Tanjung industrial estate in North Sumatra and Balikpapan-Samarinda toll road in Kalimantan absorbing Rp 8 trillion each.
The Balikpapan-Samarinda toll road will span about 100 kilometers, connecting the capital city of East Kalimantan with the biggest oil-producing city in the province. Meanwhile, Kuala Tanjung industrial estate will be established on a 1,000-hectare site and will accommodate aluminum-based industries.
Suradi said Wika was still in the consolidation stage with potential partners, including state-run port company Pelindo I, but he said his company expected to hold a majority of shares in the project.
“For now we will focus on getting approval to fund these projects through the state-capital injection,” he said. - See more at: Wika still seeking state injection | The Jakarta Post
injection
Anggi M. Lubis, The Jakarta Post, Jakarta | Business | Mon, September 07 2015, 5:43 PM
State-run construction company Wijaya Karya (Wika) says it will proceed with its Rp 3 trillion (US$212 million) state-capital injection proposal despite the dropping of the high-speed railway project from the list of projects to be funded with the equity injection.
Wika says that for the moment it will focus on other projects on the list, including the Rp 8 trillion Kuala Tanjung industrial estate and Balikpapan-Samarinda toll road, while awaiting certainty on the medium-speed train project, which will replace the planned high-speed rail connection between the two busiest cities in the western part of Java.
On Friday, President Joko “Jokowi” Widodo scrapped the plan to build the country’s first high-speed railway and instead considered a new plan to develop a medium-speed train connecting Jakarta with Bandung in West Java.
Jokowi’s decision followed a recent recommendation by a government-sanctioned assessment team.
A day earlier, Jokowi announced that financing for the project, which could cost between $5.5 billion and $6 billion, would not involve the state budget.
This decision eliminated the possibility of Wika, which had been appointed to lead the consortium of contractors on the train project, setting aside a potion of funds it will get from next year’s state-capital injection for the mega project.
Wika corporate secretary Suradi told The Jakarta Post over the weekend that the publicly listed company would still proceed with its state-capital injection plan, saying that there were still several projects that the company planned to spend the money on. He added that the company would still be involved in the medium-speed train project, awaiting further coordination with the State-Owned Enterprises Ministry.
“We will still lead the project, but there will be no funding from the state budget. We hope the plan will be finalized soon so a feasibility study can be carried out as quickly as possible,” Suradi said.
Wika is among the state-run firms that have proposed to the State-Owned Enterprises and the House of Representatives that they receive capital injections from next year’s state budget.
Wika is seeking an injection of Rp 3 trillion, which will be used for a number of infrastructure projects the company plans to work on. This year, the government has plans to inject capital of Rp 70.73 trillion in 39 state-run companies by means of rights issues.
To prevent the government’s 65.05 percent stake in Wika being diluted, the builder will have to raise at least Rp 4.61 trillion from a rights issue next year.
Suradi said Wika would mostly use the state-capital injection for toll-road projects, a reservoir and an industrial estate.
Without the high-speed rail project, Wika would need around Rp 23 trillion for the projects, with Kuala Tanjung industrial estate in North Sumatra and Balikpapan-Samarinda toll road in Kalimantan absorbing Rp 8 trillion each.
The Balikpapan-Samarinda toll road will span about 100 kilometers, connecting the capital city of East Kalimantan with the biggest oil-producing city in the province. Meanwhile, Kuala Tanjung industrial estate will be established on a 1,000-hectare site and will accommodate aluminum-based industries.
Suradi said Wika was still in the consolidation stage with potential partners, including state-run port company Pelindo I, but he said his company expected to hold a majority of shares in the project.
“For now we will focus on getting approval to fund these projects through the state-capital injection,” he said. - See more at: Wika still seeking state injection | The Jakarta Post
Jakarta LRT Brochure
Jakarta LRT Brochure
Jakarta LRT Brochure
Jakarta LRT Brochure
