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Indonesian firm to work on 2 Brunei projects
Publication Date : 12-01-2014
An Indonesian construction firm will be working on two construction projects funded by the Brunei government, according to a report.
State-owned PT Wijaya Karya (WIKA) is said to be undertaking projects outside Indonesia this year, including some in Brunei and Myanmar as well as one in Saudi Arabia, the Jakarta Post reported recently.
WIKA president director Bintang Perbowo was quoted as saying that the firm would be working a highway and an office building project funded by the Brunei government.
“We are still working on the details, but each project may need around 100 billion rupiah (US$10.6 million),” he was quoted as saying Thursday.
Bintang also reportedly said WIKA received an offer to develop a real estate complex in Myanmar and that talks were ongoing.
Besides Brunei and Myanmar, the company is looking at a tie-up with Indonesia’s Religious Affairs ministry, which is considering the construction of dormitory facilities for Indonesian pilgrims in Mecca.
“We may construct the facilities ourselves or act as an investor within a local company,” Bintang reportedly said.
WIKA had worked on several projects abroad, including in Libya and Algeria, Jakarta Post said.
The new overseas projects are expected to contribute to WIKA’s total contracts target in 2014, which is set at 49.97 trillion rupiah, up 30 percent from last year, it added.
More than half of the contracts targeted this year will come from new projects, the report stated.
It added that the rest would be be carryovers.
According to the Jakarta Post, the company’s business plan shows that 31 per cent of its project orders are from government, 35 per cent from state-owned enterprises, and 34 per cent from private firms.
The report states that the company has placed its capital expenditures at 2 trillion rupiah, to be funded from internal cash, loans and the proceeds of a planned initial public offering of its unit WIKA Beton in the first quarter of this year.
The daily reported that the company has yet to release its 2013 financial results, but added that its business plan shows a revenue target of 15.41 trillion rupiah and net profits of 555.06 billion rupiah for the year.
From January to September 2013, it booked 7.91 trillion rupiah in revenue and 390.03 billion rupiah in net profits, the report stated.
US$1 = 11,830.5 rupiah