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QUANTUM TRANSFORMATIONFOR THE BEST OF THE NATIONAnnual Report 2018

Annual Report 2018

WIKA Tower 1 & 2Jl. D.I. Panjaitan Kav. 9 - 10Jakarta 13340 - IndonesiaPhone : +6221 806 79200Fax : +6221 228 93830E-mail : [email protected]

PT Wijaya Karya

@PTWijayaKarya

ptwijayakarya

WIJAYA KARYA TV

www.wika.co.id

Annual Report 2018

PT WIJAYA KA

RYA (Persero) Tbk.Q

UANTU

M TRAN

SFORM

ATION

FOR TH

E BEST OF TH

E NATIO

N

Life always evolved, PT Wijaya Karya (Persero) Tbk.

(“WIKA”) continues to grow to show commitment

as an entity that is always forward-thinking. The

enthusiasm for giving the best contribution to the

Nation has become a great force that guides WIKA’s

steps to always be a dynamic, responsive, adaptive and

innovative entity to produce high-quality monumental

works.

The enthusiasm was also an inspiration for WIKA to

continue transforming from previously only focusing

on sectors that became core competencies, until now

we transformed into an integrated business company

and has penetrated into broader sectors, namely

Infrastructure & Buildings, Energy & Industrial Plant,

Realty & Property, Industry, Investment, Construction

Engineering, and Integrated Transportation System.

As this transformation continues, WIKA’s capacity

grows even more as reflected in various superior

achievements in operational, financial, business

capacity, human resource and other aspects.

T R A N S F O R M A T I O NF O R T H E B E S T O F T H E N AT I O N

Q U A N T U MBuilding potential to empower the country is a long

journey that must be taken with a firm commitment.

For this reason, WIKA is always consistent to

provide the best for whole work elements. Not only

constructing, WIKA also ensures that all projects

can contribute equally from big cities in Java to the

remote parts of Papua.

With hope that there will be business continuity and

harmony between people, planet and profit, WIKA

continues to expand and realize the best performance

in order to build a prosperous and sustainable

nation. Through good synergy between subsidiaries,

associates, business partners and all stakeholders,

WIKA increasingly emphasizes its position as a center

of excellence that has the capability to present a

gateway to a more qualified Nation’s life.

2 2018 Annual Report PT WIJAYA KARYA (Persero) Tbk.

QUANTUM TRANSFORMATIONFOR THE BEST OF THE NATION

CONTINUITY OF THEMES

BUILDING GREATER IMPACT AND SHARING GROWTH

WIKA has committed to contribute to the success of government programs, especially in infrastructure developments, in line with the Company ’s core business in construction. A number of infrastructure development have been mandated by the Government to the Company, and WIKA’s infrastructure and buildings development brings a positive impact to “Create Impact” and benefit to society (stakeholders). The infrastructure and buildings have a design that is not only modern, but follows the concept of “social impact”, where people can feel the benefit from this infrastructure immediately and the advantages that will improve their welfare and economic growth.

CREATING PROMISING FUTURE

We are the future. A courage to make a breakthrough, belongs only by people who have a vision for the future. WIKA continues to grow, explore, and create new things is a bright spot that is building the future of the nation.

OPERATIONAL EXCELLENCE FOR BEST RESULT

WIKA, getting more established in multinational companies level, at present has already had a wide range of instruments to manage products and services in accordance with international labor standards. Through Operational Excellence, WIKA builds management integrations that boost productivity, increase efficiency and grow profits.

DEVELOPING HUMAN CAPITAL FOR GROWTH AND EXCELLENCE

Increasing growth of WIKA businesses can happen due to the role of each person in the Company, or in other words, “human” is one of the key to success for the growth of an organization. Consequently, every employee is considered as human capital to WIKA, meaning that each person has the strength and competency to perform a transformation for the elevation of the Company.

2015

2013

2016

2014

3PT WIJAYA KARYA (Persero) Tbk. Annual Report 2018

DREAM. BELIEVE. ACHIEVE.

During the 58 years of active development in homeland infrastructure, WIKA showed remarkable growth and development. The journey of almost 6 decades proved that WIKA always dared to try something new with measurability. How can WIKA succeed in such a way? The key is simple. WIKA dares to dream high, believes and is optimistic to make it happen. Dream, Believe, Achieve.


Laporan Tahunan 2018

Laporan Tahunan 2018

WIKA Tower 1 & 2Jl. D.I. Panjaitan Kav. 9 - 10Jakarta 13340 - IndonesiaT : +6221 806 79200F : +6221 228 93830E-mail: [email protected]

PT Wijaya Karya

@PTWijayaKarya

ptwijayakarya

WIJAYA KARYA TV

www.wika.co.id

Laporan Tahunan 2018PT W

ijaya Karya (Persero) TbkQ

UAN

TUM

TRAN

SFORM

ATION

FOR TH

E BEST OF TH

E NATIO

N

2017

2018

QUANTUM TRANSFORMATION FOR THE BEST OF THE NATION

Conformity with the Theme of the 2018 Annual Report Award:

“Information Accuracy for Sustainable Corporate Performance by Winning Stakeholders’ Support”

Throughout its business journey, WIKA continues to transform and strives to win the support of all stakeholders. For this reason, WIKA is working on various Government projects, fellow SOEs, and the private sector with a commitment to give the best. The commitment confirms WIKA’s position as the executor of crucial tasks in the development of civilization, which will provide long-term benefits in advancing and developing the Indonesian economy.

WIKA is very aware that the quality of stakeholder management is the key to success in achieving optimal performance and proud output. To that end, WIKA engages, manages, utilizes, and communicates with each stakeholder effectively, to achieve the Company’s goals and plans as expected. This Annual Report is presented with accurate information about the Company’s performance in 2018.



Is a value creator who is able to adapt to the change of epochs. Starting a business from an electrical installer then grew to become Engineering, Procurement, Construction (EPC) and Investment Company in many sectors including power plants, toll roads, ports and the transportation industry.

Having strong leadership and the ability to choose the right human capital in realizing the business direction going forward.

Always leading in construction technology and business expansion units (Mass Rapid Transit, Oil and Gas, and Power Plant technology).

Being able to transform into a business group with a variety of business pillars, development of subsidiaries, associates, each of which focuses on working on certain business segments. However, it still integrates with each other through a backward-forward integration strategy.

The pioneer of the first precast concrete industry developer in the country was marked by the construction of precast concrete plants in several regions of the archipelago in the late 1970s. Now it continues to grow with 15 concrete plants with a production capacity of 3.6 million tons/year which always produce a variety of concrete precast concrete products as a pioneer for monumental projects (railroad tracks bearing, piles, electric poles, box girder, span MRT tunnels, sudetan, etc.)

THE ADVANTAGES OF WIKA

PIONEER

VALUE CREATOR

BACKWARD-FORWARD

LEADERSHIP

HIGH TECHNOLOGY


Leading in developing Engineering, Procurement, Construction and Commissioning (EPCC), as well as investing and developing a number of infrastructure projects, especially projects that are Government programs related to the State Budget (APBN).

Able to work on civil construction projects with design and build methods starting from the project planning process to the construction process.

Innovation and development of intangible assets; knowledge management (KM-WIKA), WIKA Management System (ISO 9001, ISO 14001, ISO 31000, OHSAS 18001, Security Management System) and WIKA Information System that has been integrated.

Experienced in working on various foreign projects that spread across the Asian and African countries whose expansion continues through the development of patterns of Project Management Services (PMS) and penetrated into the pattern of main contractors and overseas sub-contractors.

Experienced in developing real estate and property business, both as a contractor and developer. At the moment, WIKA is also entering the Transit Oriented Development (TOD) business, which is one of the cities that adopts mixed spatial planning and maximizes the use of mass transportation, such as Bus Rapid Transit (BRT), Commuter Line, Mass Rapid Transit (MRT), Light Rail Transit (LRT), and Automated People Mover System (APMS).

Leading in utilizing the leading technology of Building Information Modeling (BIM) that is able to provide a comprehensive overview in 3 dimensions of the project to be done. By using BIM, WIKA can plan more precisely and minimize the risks that arise in the stages of work on the project.

EPCC

OVERSEAS EXPANSION

DESIGN & BUILD

TRANSIT ORIENTED DEVELOPMENT

INNOVATION

BUILDING INFORMATION MODELLING



WIKA’S PERFORMANCE AT GLANCE

SHAREHOLDING SUBSIDIARIES

ABOUT THE COMPANY

G ove r n m e n t o fR e p u b l i c o f I n d o n e s i a

P u b l i c65.05%34.95%

PT Wijaya Karya Beton Tbk. (60.00%)

PT Wijaya Karya Realty (93.05%)

PT Wijaya Karya Industri dan Konstruksi (97.22 %)

PT Wijaya Karya Rekayasa Konstruksi (90.04%)

PT Wijaya Karya Bangunan Gedung Tbk. (69.30%)

PT Wijaya Karya Bitumen (99.00%)

PT Wijaya Karya Serang Panimbang (80.00%)

LINI BUSINESS

R p I N V E S T M E N T

R E A LT Y & P R O P E R T Y

I N F R AS T R U C T U R E & B U I L D I N G

I N D U S T RY

C O N S T R U C T I O N E N G I N E E R I N G

I N T E G R AT E D T R A N S P O R TAT I O N

SYS T E M

E N E R GY & I N D U S T R I A L P L A N T


NEW CONTRACT ORDER BOOK

NET REVENUE

SIGNIFICANT AWARDS

NET INCOME

KOMODO BOND

PERPETUALNOTES

WIKA’S ACHIEVEMENTS IN 2018

Rp26.18 trillion (2017)

Rp42.40 trillion (2017) Rp106.64 trillion (2017)



Rp50.56 trillion (2018) Rp123.51 trillion (2018)


Increased by 19.24% to Rp50.56 trillion as of December 31, 2017.



Asia Sustainability Report 2017 Kategori Asia’s Most Tranparent Report

Top 2 Best Growth Strategy Public Listed SOE Category.

Champion for ASEAN 2018 Sektor Konstruksi

Indonesia Good Corporate Governance (GCG) Award 2018 dan Operational Excellence Award I 2018 Kategori Public Company

Platinum Rank “Asia Sustainability Reporting Rating 2018”

Best of The Best version Majalah Forbes Indonesia

Indonesia Most Trusted Company 2018

WIKA’s Perpetual Notes I in 2018 were successfully issued with an amount of Rp600 billion. The proceeds from the issuance of Perpetual Notes will be used to finance the investment and working capital of the Company.

WIKA has successfully issued Komodo Bonds listed on the Singapore Exchange and London Stock Exchange. WIKA’s Komodo Bond was oversubscribed with 2.5x and managed to raise funds of Rp5.4 trillion.


19.03%

19.24% 15.82%

52.89%

Rp

TABLE OF CONTENTS

PERFORMANCE HIGHLIGHTSFinancial Overview

Operational Overview

Share Overview

Bonds, Sukuk, and/or Bonds

12

20

21

23

MANAGEMENT REPORTS34

42

Board Of Commissioners’ Report

Board of Directors’ Report

COMPANY PROFILECorporate Identity

Milestone

Brief History of Company

Business Field

Regional Business Map

Goods and Service

Business Lines

Organizational Structure

Vision, Mission and Corporate Value

Identity and Curriculumof the Board of Commissioners

Identity and Curriculum of Board of Directors

Executive Officers Profile

Structure and Composition of Shareholders

List of Subsidiaries and/or Associated Entities

54

56

60

64

66

68

70

72

74

78

88

98

108

111

MANAGEMENT DISCUSSION AND ANALYSIS Overview of Industry and Macroeconomic Conditions in Indonesia 2018

Operational Review

Business Segment Overview

Financial Performance

Ability To Pay Debt And Receivables Collectibility

Capital Structure

180

184

185

189

199

201

24

25

30

30

Main Strategy 2018

Significant Events

Corporate Actions

Temporary Termination of Stock

122

123

124

126

128

136

145

146

152

160

172

Structure of Company ’s Group

Chronology of Listing of Shares

Chronological Issuing and/orListing of Bonds and Other Securities

Name and Addresses of SupportingInstitutions and/or Professionals Capital Market

Award and Certification

Name and Address of Subsidiaries, Association Entities, Strategic Business Units, Overseas Branch Offices and Division Offices

Information Available on the Website

Employee Demographic

Education and/or Training of the Board of Commissioners, Directors, Committees, Corporate Secretary and Internal Audit Unit

Human Capital

Information Technology

202

204

205

206

Material Commitments for Capital Goods Investments

Comparison between Targets at the Beginning of the Year and Realization

Business Prospect

Material Information and Facts After Date of Auditor ’s Report Marketing AspectsMarketing Aspects



GOOD CORPORATE GOVERNANCECompany Commitment in Implementing Corporate Governance and Governance Outcome

Corporate Governance Structure and Mechanism

Board of Commissioners

Board of Commissioners’ Perfomance Assessment

Frequency and Attendance Level of Board of Commissioners Meetings

Board of Directors

Board of Directors’ Perfomance Assessment

Frequency And Attendance Level of Board Of Directors Meetings

Remuneration Policy of the Board of Commissioners and Directors

Audit Committee

Nomination, Remuneration and GCG Committee

Other Committee under the Board of Commissioners

Risk Monitoring Function

Governance of Corporate Social Responsibility Corporate Social Responsibility Related to Human Rights

Corporate Social Responsibility towards Fair Operating Practices

Corporate Social ResponsibilityRelated to the Environment

224

250

258

277

280

289

298

306

314

318

327

333

334

384

391

392

394

CORPORATE SOCIAL RESPONSIBILITY

335

337

344

346

350

355

356

358

360

366

368

369

370

371

372

Corporate Secretary

Internal Control Unit

Public Accountant

Risk Management

Internal Control System

Provision of Funds for Social Activities and/or Politics

Important Case

Access to Company Information and Data and Relations with Stakeholders

Code of Ethics

Whistleblowing System

Majority and Controlling Shareholder

Management of State Property Reports (LHKPN)

Prevention of Insider Transactions

Buyback Shares and Bonds

Corporate Governance Compliance According to Asean Corporate Governance Scorecard

396

402

405

409

Corporate Social Responsibility Related to Employment, Occupational Health, and Safety

Corporate Social Responsibility Related to Consumers

Corporate Social ResponsibilityRelated to Social Development

Corporate Social Responsibility Related to Suppliers

Marketing Aspects

Material Information Related to Investments, Expansions, Divestments, Acquisitions, or Debt and Capital Restructuring

Dividends Policies

Stock Ownership Program

Use of Funds from the PMHMETD Until December 31, 2018

207

208

209

210

211

212

216

217

218

219

220

Material Information Containing Conflicts of Interest and/or Transactions with Related Parties

Changes In Regulations and Their Impact

Changes in Accounting Policies

Business Continuity Information

Company Soundness Level

Subsidiaries’ Performance


PERFORMANCE HIGHLIGHTS 12

20

Financial Overview

Operational Overview

Share Overview

Bonds, Sukuk, and/or Bonds

21

23

Surabaya-Gempol, Porong Gempol Package I Toll Road

Main Strategy 2018

Significant Events

24

25

Corporate Actions

Temporary Termination of Stock

30

30



PERFORMANCEHIGHLIGHTS

MANAGEMENTREPORT

DESCRIPTION 2018 2017 2016 2015 2014

Net Revenues 31,158,193,498 26,176,403,026 15,668,832,513 13,620,101,419 12,463,216,288

Cost of Revenues (27,553,466,348) (23,300,168,938) (13,476,892,423) (11,959,841,920) (11,035,578,572)

Gross Profit 3,604,727,150 2,876,234,088 2,191,940,090 1,660,259,499 1,427,637,716

Selling Expenses (10,445,343) (9,958,720) (9,094,812) (7,695,193) (6,838,756)

General and Administrative Expenses (775,299,502) (666,714,154) (517,734,503) (421,462,453) (386,009,513)

Interest Income - - 50,971,372 59,686,089 73,500,762

Increase in Fair Value of Investment Properties - - 4,484,439 - -

Gain on Bargain Purchase - - 51,474,654 - -

Gain (Loss) in Foreign Exchanges - - (5,445,321) 28,350,510 (2,039,829)

Allowance for impairment - - (46,400,343) (30,500,231) (46,244,153)

Other Income 1,122,197,667 416,734,338 - - -

Other Expenses (106,482,566) (295,507,893) - - -

Finance Cost (972,528,679) (677,973,460) (435,314,128) (431,409,359) (197,704,174)

Final Income Tax Expenses (726,942,503) (629,479,208) (365,015,329) (346,788,000) (286,455,956)

Loss from Associated Entity (309,628,664) (123,644,382) (38,190,543) (5,514,535) (7,123,198)

Share in Profit of Joint Venture 533,031,374 572,700,749 378,836,006 288,402,591 369,757,130

Others Net - - 34,727,654 (27,998,951) (35,738,242)

Profit Before Income Tax 2,358,628,934 1,462,391,358 1,295,239,236 765,329,966 902,741,788

Income Tax Expenses (285,329,070) (106,275,869) (84,209,926) 49,900,712 121,144,974

Net Income 2,073,299,864 1,356,115,489 1,211,029,310 715,429,254 781,596,814

Other Comprehensive Income After Tax

Other Comprehensive Income that Will not be Reclasified Subsequently to Profit or Loss

Actuarial Gain (Loss) of Defined Benefit Plan 140,243,105 (47,649,429) (16,618,045) 6,306,290 (7,616,608)

Other Comprehensive Income for the Year 2,213,542,969 1,308,466,060 1,194,411,265 721,735,544 773,980,206

Income Attributable to:

Owner of Parent Entity 1,730,256,243 1,202,069,175 1,058,935,366 635,257,252 640,818,710

Non Controlling Interest 343,043,621 154,046,314 152,093,944 80,172,002 140,778,104

Total 2,073,299,864 1,356,115,489 1,211,029,310 715,429,254 781,596,814

Total Comprehensive Income (Loss) Attributable to:

Owner of Parent Entity 1,860,117,752 1,158,684,399 1,043,915,368 645,904,113 635,901,757

Non Controlling Interest 353,425,217 149,781,661 150,495,897 75,831,411 138,078,448

Total 2,213,542,969 1,308,466,060 1,194,411,265 721,735,544 773,980,206

Earnings Per Share (Full amount) 193,02 134,10 162,21 103,31 104,21

CONSOLIDATED STATEMENTS OF PROFIT AND OTHER COMPREHENSIVE INCOME

FINANCIALOVERVIEW

(in thousand Rupiah)


COMPANYPROFILE

MANAGEMENT DISCUSSION AND ANALYSIS

GOOD CORPORATEGOVERNANCE

CORPORATE SOCIALRESPONSIBILITY

2014 2015 2016 2017 2018

in billion Rupiahin billion Rupiah

NET REVENUE

NET INCOME

C A G R2 0 1 4 - 2 0 1 8

C A G R2 0 1 4 - 2 0 1 8

25.74% 27.60%

12,4

63

13,6

20

15,6

69

26,1

76

31,1

58

2014

782

715

1.21

1

1.35

6

2.0

73

2015 2016 2017 2018

DESCRIPTION 2018 2017 2016 2015 2014

Net Cash Flow Provided by Operating Activities 2,722,531,219 1,885,252,166 (1,113,343,805) 224,272,849 (179,730,589)

Net Cash Used for Investing Activities (4,917,957,798) (2,637,548,255) (1,338,524,756) (325,091,864) (1,268,223,615)

Net Cash Provided by Financing Activities 4,876,802,750 2,727,823,454 9,175,983,354 345,914,785 2,360,099,519

Increase of net cash and cash equivalent 2,681,376,171 1,975,527,365 6,724,114,793 245,095,770 912,145,315

Impact in Foreign Exchange 38,612,091 8,251,266 (14,235,692) 14,132,531 2,039,829

Beginning Balance of Cash and Cash Equivalent 11,253,778,215 9,269,999,584 2,560,120,483 2,300,892,182 1,386,707,038

Ending Balance of Cash and Cash Equivalent 13,973,766,477 11,253,778,215 9,269,999,584 2,560,120,483 2,300,892,182

CASH FLOW STATEMENTS




MANAGEMENTREPORT

DESCRIPTION 2018 2017 2016 2015 2014

ASSETS

CURRENT ASSETS

Current Assets Cash and Cash Equivalents 13,973,766,477 11,253,778,215 9,269,999,584 2,560,120,483 2,300,892,182

Restricted Deposits 20,000,000 20,100,000 - - -

Trade Account Receivables

Related Parties 2,745,540,433 3,000,643,116 1,195,435,762 937,535,147 691,807,092

Third Parties 2,605,300,003 1,929,510,016 2,555,662,357 1,844,445,009 1,271,025,540

Retention Receivables

Related Parties 677,642,045 348,167,986 230,315,881 205,416,970 179,581,695

Third Parties 1,246,488,344 979,998,517 556,569,838 391,860,998 313,023,077

Gross Amount Due from Customers

Related Parties 5,565,798,797 5,826,664,167 1,763,089,366 1,733,563,354 1,195,553,937

Third Parties 4,336,247,938 3,434,294,927 2,207,768,831 1,510,834,434 1,174,305,923

Unbilled Receivables - Current Portion 924,845,767 592,563,302 349,559,336 251,510,864 82,846,240

Other Accounts Receivable

Related Parties 1,420,649,920 170,978,921 139,086,756 29,575,526 10,757,700

Third Parties 58,488,669 133,988,030 77,931,227 76,695,192 97,897,949

Inventories 5,978,533,161 3,839,540,301 3,182,130,677 1,031,277,931 817,307,342

Advances 1,487,325,514 1,180,612,848 627,823,946 439,641,163 384,431,063

Prepaid Taxes 1,615,704,032 1,298,271,722 757,785,883 529,036,987 425,794,117

Prepaid Expense 735,419,058 702,804,644 595,314,817 465,274,857 241,370,431

Business Guarantee 105,100,463 88,042,632 33,211,810 15,032,335 12,895,738

Real Estate Assets - - - 920,214,145 836,280,348

Financial Assets from Concession Projects - Current Portion

58,645,244 110,148,921 110,148,921 110,148,921 110,148,921

Total Current Assets 43,555,495,865 34,910,108,265 23,651,834,992 13,052,184,316 10,145,919,295

NON-CURRENT ASSETS

Trade Accounts Receivables - Non Current Portion

Third Parties 1,719,973 4,657,606 184,873,545 13,402,337 40,182,013

Other Accounts Receivables - Non Current Portion

Related Parties 3,984,331,159 1,211,412,309 285,000,000 285,000,000 -

Third Parties 14,617,480 5,324,891 - - -

Unbilled Receivables - Non Current Portion 444,232,429 114,576,313 34,645,312 - -

Advances - Non Current Portion 280,000,000 247,857,941 148,763,335 - -

Prepaid Expense - Non Current Portion - 354,297,694 - - -

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousand Rupiah)


COMPANYPROFILE




DESCRIPTION 2018 2017 2016 2015 2014

Business Guarantees - Non Current Portion - 172,513,482 179,184,563 7,611,346 5,865,179

Financial Assets from Concession Projects - Non Current Portion

- 58,645,244 168,794,166 278,925,495 389,074,416

Real Estate Assets 711,009,859 512,182,215 258,905,609 275,446,573 142,006,418

Investment in Associates 727,823,591 396,918,845 330,174,029 300,607,375 227,137,428

Investment in Joint Venture 1,813,165,802 2,812,600,560 2,114,559,007 1,597,379,391 1,669,608,387

Investment Property 1,593,674,779 538,548,500 461,185,251 456,084,911 430,056,664

Fixed Assets - Net 4,675,679,014 3,932,108,696 3,324,669,312 3,184,400,113 2,676,043,079

Goodwill - Net 4,847,052 4,847,052 4,847,052 4,847,052 4,847,052

Other Long Term Investment 559,267,882 116,658,458 89,450,795 67,860,215 37,532,807

Intangible Assets 714,353,513 139,077,296 - - -

Other Assets 118,345,546 125,739,132 100,088,704 116,417,694 162,807,477

Deferred Tax Assets 31,437,295 25,699,803 18,229,018 26,283,705 28,147,824

Total Non- Current Assets 15,674,505,374 10,773,666,037 7,703,369,698 6,614,266,208 5,813,308,744

TOTAL ASSETS 59,230,001,239 45,683,774,302 31,355,204,690 19,666,450,524 15,959,228,039

LIABILITIES

CURRENT LIABILITIES

Short Term Loans

Related Parties 1,663,039,321 2,974,410,303 1,959,410,812 608,319,568 570,012,133

Third Parties 2,536,992,008 3,449,443,672 2,752,415,707 613,502,788 358,503,311

Trade Payables

Related Parties 176,597,892 139,182,504 68,179,539 36,378,547 60,004,589

Third Parties 13,006,775,938 8,785,803,858 4,459,255,102 4,287,019,827 3,842,802,356

Other Payables 29,816,535 265,454,484 238,762,353 99,048,974 73,678,786

Due to Customers 9,705,502 - - 13,224,506 9,641,161

Tax Payable 467,488,448 441,631,879 188,857,241 177,085,029 168,940,523

Advances Received from Customers 1,233,776,339 1,442,187,701 767,675,536 477,381,896 316,364,321

Accrued Expenses 8,634,099,492 7,805,962,536 3,247,437,280 - -

Unearned Revenues 196,987,012 188,856,055 125,127,130 406,959,558 178,593,992

Short Term Portion of

Medium Term Notes 250,000,000 175,000,000 800,000,000 249,000,000 541,000,000

Lease Payables 37,299,977 41,259,887 18,772,830 22,300,954 16,893,554

Long Term Loan 9,372,921 266,424,418 283,123,166 324,706,736 221,620,359

Total Short Term Liabilities 28,251,951,385 25,975,617,297 14,909,016,696 10,600,100,431 8,478,608,469




MANAGEMENTREPORT

DESCRIPTION 2018 2017 2016 2015 2014

LONG TERM LIABILITIES

Employee Benefits Liabilities 178,708,069 337,172,202 243,072,993 200,490,168 181,284,262

Deferred Tax Liabilities 140,226,300 45,890,326 46,147,721 24,963,304 14,342,845

Advances for Long Term Projects 3,644,322,003 2,477,316,688 2,327,873,112 1,662,677,044 1,049,416,204

Other Payable - Non Current Portion 707,321,016 107,894,953 159,520,193 - -

Long Term Portion Net of Short Portion

Medium Term Notes 6,084,622,512 1,000,000,000 425,000,000 975,000,000 800,000,000

Lease Payables 213,628,754 96,849,868 52,064,738 46,365,276 48,454,961

Long Term Loan 2,793,906,635 1,011,208,355 454,519,946 668,501,024 472,538,845

Total Long Term Liabilities 13,762,735,289 5,076,332,392 3,708,198,703 3,577,996,816 2,566,037,118

TOTAL LIABILITIES 42,014,686,674 31,051,949,689 18,617,215,399 14,178,097,247 11,044,645,587

EQUITY

Equity Attributable to Owners of Parent EntityShare Capital Nominal Value: Rp100 (full amount) per ShareShare Capital - 35,000,000,000 Shares

Shares Issued and Fully Paid-up - 8,969,951,372 Share

896,995,137 896,995,137 896,995,137 614,922,500 614,922,500

Treasury Stock (10,272,110) (10,272,110) (10,272,110) (10,272,110) (10,272,110)

Additional Paid-in Capital 6,555,720,677 6,555,720,677 6,555,720,677 715,858,789 715,858,789

Changes in Equity of Subsidiaries 1,283,644,636 1,330,850,680 997,335,383 997,335,383 997,335,383

Remeasurement Employee Benefit - - (99,591,149) (84,571,151) (90,877,441)

Perpetual Notes 597,600,000 - - - -

Retained Earnings 5,479,925,961 3,860,221,964 3,005,085,913 2,170,755,948 1,679,270,994

Sub Total 14,803,614,301 12,633,516,348 11,444,865,000 4,404,029,359 3,906,238,115

Non Controlling Interests 2,411,700,264 1,998,308,265 1,293,124,291 1,084,323,918 1,008,344,337

Total Equity 17,215,314,565 14,631,824,613 12,737,989,291 5,488,353,277 4,914,582,452

TOTAL LIABILITIES AND EQUITY 59,230,001,239 45,683,774,302 31,355,204,690 19,666,450,524 15,959,228,039


COMPANYPROFILE




2014

20142014

20142015

20152015

20152016

20162016

20162017

20172017

20172018

20182018

2018

in billion Rupiah

in billion Rupiahin billion Rupiah

in billion Rupiah

INVESTMENT OF THE ASSOCIATE

ENTITIES

EQUITY

LIABILITIESASSETS

C A G R2 0 1 4 - 2 0 1 8

C A G R2 0 1 4 - 2 0 1 8

C A G R2 0 1 4 - 2 0 1 8

C A G R2 0 1 4 - 2 0 1 8

38.80%

33.82%36.80%

39.66%

11,0

45

15,9

59

227

4,9

15

14,1

78

19,6

66

301

5,4

88

18,6

17

31,3

55

330

12,7

38

31,0

52

45,

684

397

14,6

32

42,

015

59,2

30

728

17,2

15




MANAGEMENTREPORT

DESCRIPTION 2018 2017 2016 2015 2014

PROFITABILITY (%)

Return on Equity 14.18 10.52 10.70 16.71 21.09

Return on Investment 7.41 7.32 7.64 9.44 9.98

Return on Assets 3.95 3.52 4.75 7.17 5.22

LIQUIDITY (%)

Cash Ratio 49.53 43.40 62.18 24.16 27.14

Current Ratio 154.17 134.40 158.64 118.52 120.55

Quick Ratio 133.01 127.99 150.83 108.79 110.91

ACTIVITY

Collection Period (days) 63 69 87 75 57

Total Assets Turn Over (Times) 53.07 58.32 50.48 71.72 81.92

CAPITAL STRUCTURE (TIMES)

Debt to Equity Ratio 2.44 2.12 1.46 2.60 2.26

Debt to Total Assets Ratio 0.71 0.68 0.59 0.72 0.69

Gearing Ratio 0.79 0.62 0.53 0.65 0.62

Total Equity to Total Assets Ratio 0.29 0.32 0.41 0.28 0.31

MARGIN (%)

Gross Profit Margin 11.57 10.99 13.99 12.15 11.43

Operating Profit Margin 10.76 10.59 13.04 11.12 11.24

Net Profit Margin 6.65 5.18 7.73 5.16 5.97

GROWTH (%)

Sales 19.03 67.06 15.04 9.28 4.87

Operating Income 20.41 35.63 35.01 8.02 15.26

Income Attributable to Parent Entity Owner 40.25 13.52 69.42 2.78 6.71

Total Assets 29.65 45.70 59.96 23.21 26.31

Equity 17.66 14.87 134.24 11.51 51.13

FINANCIAL RATIO


COMPANYPROFILE




RETURN ON INVESTMENT (ROI)

DEBT TO EQUITY RATIO

CURRENTRATIO

LIABILITY TO EQUITY RATIO

20142014

120

.55

9.98

118.

52

9.4

4

158.

64

7.64

134

.40

7,32

154

.17

7.41

20152015 20162016 20172017 20182018

2014 2014

2.26

0.6

2

2.60

0.6

5

1.4

8

0.5

3

2.12

0.6

2

2.4

4

0.7

9

2015 20152016 20162017 20172018 2018

9,4

4

7,64

7,32

7,41




MANAGEMENTREPORT

(in billion Rupiah)

(in billion Rupiah)

(in billion Rupiah)

(in billion Rupiah)

INFORMATION 2018 2017 GROWTH

(RP) (RP) (%)

New Contract 41,145.14 26,413.01 55.78

Order Book 98,356.01 79,684.21 23.43


(RP) (RP) (%)

New Contract 1,786.78 7,379.39 (75.79)

Order Book 12,752.23 15,613.27 (18.32)


(RP) (RP) (%)

New Contract 6,455.20 6,648.69 (2.91)

Order Book 9,769.24 8,304.73 17.63


(RP) (RP) (%)

New Contract 1,173.07 1,961.10 (40.18)

Order Book 2,635.80 3,039.90 (13.29)

Table of Operational Performance of Infrastructure and Building Segments

Table of Operational Performance of Energy and Industrial Plant Segments

Table of Operational Performance of Industrial Segments

Table of Operational Performance of Realty and Property Segments

OPERATIONALOVERVIEW


COMPANYPROFILE




SHAREOVERVIEW

YEARPRICE PER SHARES (RP) TOTAL SHARE

(IN MILLION SHARE)

TRANSACTIONVOLUME

(SHARES)

MARKETCAPITALIZATION

(RP MILLION)OPENING HIGHEST LOWEST CLOSING

2018

Quarterly I 1,560.00 2,120.00 1,525.00 1,680.00 8,969.95 7,111.00 15,069.52

Quarterly II 1,700.00 1,755.00 1,250.00 1,325.00 8,969.95 8,492.70 11,885.19

Quarterly III 1,325.00 1,690.00 1,255.00 1,365.00 8,969.95 9,853.20 12,243.98

Quarterly IV 1,375.00 1,720.00 1,100.00 1,655.00 8,969.95 12,978.70 14,845.27

2017

Quarterly I 2,360.00 2,570.00 2,400.00 2,410.00 8,969.95 1,140.00 21,617.58

Quarterly II 2,410.00 2,390.00 2,180.00 2,210.00 8,969.95 864.85 19,823.59

Quarterly III 2,210.00 2,250.00 1,790.00 1,790.00 8,969.95 908.37 16,056.21

Quarterly IV 1,790.00 2,050.00 1,505.00 1,550.00 8,969.95 1,480.00 13,903.42

Table of Price, Volume and Shares Capitalisation of WIKA 2017-2018

Share Price and Volume Movement in 2017-2018

20,000,000

Quaterly 1 Quaterly 1Quaterly 2 Quaterly 2Quaterly 3 Quaterly 3Quaterly 4 Quaterly 4

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

Closing Price Transaction Volume

3,000

2,500

2,000

1,500

1,000

500

00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2017 2018




MANAGEMENTREPORT

Graphic of Quarterly Closing Price Movement 2017-2018

Graphic of Quarterly Share Volume Movement 2017-2018

2017 2018

TW1 TW2 TW3 TW4

1,3651,325

1,680

2,410

2,210

1,790

1,550

1,655

2017 2018

TW1 TW2 TW3 TW4

908.37864.851,140

7,111

8,492.70

1,480

12,978.70

9,853.20


COMPANYPROFILE




BONDS, SUKUK, AND/OR BONDS

INFORMATION OF BONDS

KOMODO BONDOn January 29, 2018, WIKA issued rupiah-denominated bonds amounting to Rp5,400,000,000 which will mature in January 2021. These bonds bear a 7.7% interest fee per year. These Komodo Bond bonds are listed on the Singapore Exchange and the London Stock Exchange.

INFORMATION OF SUKUK

As of December 2018, WIKA has not issued sukuk, thus there is no information about sukuk.

INFORMATION OF CONVERTIBLE BONDS

As of December 2018, WIKA does not issue convertible bonds and therefore there is no information regarding convertible bonds.

OTHER FUNDING SOURCES INFORMATION

PERPETUAL NOTESOn December 27, 2018, the 2018 WIKA Perpetual Notes I were successfully issued. Total the funds collected from the issuance of Phase I 2018 amounted to Rp600,000,000,000. The yield is set at 10.5% per year plus a Step-up Rate (if any).

Table of Bond Issue

Table of Issue of the Perpetual Notes

DESCRIPTIONDATE OF

ISSUETENOR CURRENCY

VALUE (BILLION)

DATE OFMATURITY

LEVEL OF INTEREST

RATE

PAYMENT STATUS

RATINGTRUSTEE

2018 2017

PERPETUAL NOTES

Perpetual Notes

December 27, 2018

Until the option is redeemed by the publisher

Rp 600 Until the option is redeemed by the publisher

10.5% applies Step-up Rate (if any)

Not Yet Paid

Fitch: AA

- PT Bank CIMB Niaga Tbk.

DESCRIPTIONDATE OF

ISSUETENOR CURRENCY

VALUE (BILLION)

DATE OFMATURITY

LEVEL OF INTEREST

RATE

PAYMENT STATUS

RATINGTRUSTEE

2018 2017

KOMODO BOND

Komodo Bond January 29, 2019

3 Years Rp 5,400 January 29, 2021

7.7% Not Yet Paid

Fitch: BBMoody’s : B2a

- The Bank of New York Mellon




MANAGEMENTREPORT

MAIN STRATEGY 2018

0102

04

06

08

03

05

07

09

The addition of two additional business lines, namely Construction Engineering, and Integrated Transportation System which complements five WIKA pillars, namely Industry, Infrastructure & Building, Energy & Industrial Plant, Realty & Property, and Investment

Spreading its wings to the Asian and African markets.

Become a creative/Initiator for large-scale projects by prioritizing BUMN Synergy both Investment, Availability Payment and Turn Key Project.

Integration with renowned planning consultants for Design and Build projects.

Targeting Multiplier Effect projects.

Evaluation and regeneration of Human Resources to prepare future leaders.

Expand the network of private market projects.

Alternative expansion of funding sources namely Komodo Bond, Bonds and Perpetual Notes.

Creating a project with a concept offer to the owner.

10

Creating alternative funding sources and increasing balance sheet capacity with the issuance of Perpetual Notes.


COMPANYPROFILE




SIGNIFICANT EVENT

WIKA collaborated with PT West Java International Airport (BIJB) Aerocity Development. The signing of the MoU between DOP III Destiawan Soewardjono and the Managing Director of BIJB Alfiansyah was conducted at Grand Preanger, Bandung. The cooperation between the two parties aims to develop the aerocity area which will be a buffer for Kertajati Airport in Majalengka Regency, West Java.

WIKA was increasingly raising its work abroad by building 1,700 and 2,250 AADL Lodgement units located in Algeria. In this project WIKA appointed 108 ambassadors with a ceremony held at the WIKA Tower Auditorium.

WIKA officially published “Komodo Bonds” on the London Stock Exchange worth Rp5.4 trillion, equivalent to US$ 405 million with a 7.7% bond coupon per year. Komodo Bonds WIKA received great support from global investors and experienced oversubscribed reaching 250%.

Indonesian President Joko Widodo conducted a working visit to the Senayan Jakarta MRT Station Project which was carried out by WIKA in the Shimizu - Obayashi - WIKA - Jaya Konstruksi (SOWJ) Consortium.

WIKA cooperated with PT Pelabuhan Indonesia (Persero) III in the construction of Terminal Teluk Lamong access flyover, Surabaya, East Java. The synergy of these two BUMNs was marked by the signing of a cooperation contract valued at Rp1.3 trillion by WIKA’s General Manager and Pelindo III Management in Lamong Bay. The signing was witnessed by Surabaya City Assistant II Secretary, M. Taswin, Pelindo III Managing Director I Gusti Ngurah Ashkara Danadiputra (Ari Ashkara), WIKA’s Board of Directors, and PT Mitrakarya Multiguna Directors.

WIKA, represented by Director Destiawan Soewardjono welcomed the arrival of the Indonesian Ambassador to Afghanistan, Arief Rachman MD along with the Afghan government delegation at the WIKA Building. This visit was one part of series of visits by Afghan business delegations to Indonesia.

JANUARY 15, 2018

FEBRUARY 20, 2018

JANUARY 29, 2018

MARCH 7, 2018

FEBRUARY 5, 2018

MARCH 12, 2018




MANAGEMENTREPORT

WIKA was increasingly optimizing the African market through the initiation of cooperation with the Zambia Government. This momentum is one of the important agendas the Company made at the Indonesia Africa Forum (IAF) at the Nusa Dua Bali Convention Center.

2018 Annual General Meeting of Shareholders of 2017 PT Wijaya Karya (Persero) Tbk. took place at the WIKA Tower 2 Auditorium.

Indonesian President, Joko Widodo, reviewed a series of WIKA projects (construction of roads and sidewalks in Sudirman - Thamrin and GBK venues) used at the 2018 Asian Games. During the inspection, the President was accompanied by PUPR Minister Basuki Hadimuljono, Minister of Youth and Sports Imam Nahrawi, Minister of State Pratikno, Head of the Creative Economy Agency Triawan Munaf, Chair of INASGOC Eric Thohir, and DOP I Agung Budi Waskito.

WIKA won the “Best Partnership Program and Community Development in Construction Category” award at the event entitled Appreciation of the 2018 Indonesian Community Development & Partnership Program held by the Economic News at Sari Pacific Hotel.

WIKA successfully entered the ranks of the SRI KEHATI 25th Corporate Index in 2018 at the Indonesia Green Company Achievement 2018 at the Ayana Mid Plaza Hotel.

APRIL 10-11, 2018 APRIL 24, 2018

JUNE 25, 2018

APRIL 30, 2018

JULY 11, 2018


COMPANYPROFILE




Minister of State-Owned Enterprises Rini M. Soemarno, Minister of Industry Airlangga Hartarto, President Director of WIKA Tumiyana, Managing Director of Indonesia Fertilizer Aas Asikin and President Director of Pupuk Sriwijaya Palembang (Pusri) Mulyono Prawiro jointly conducted groundbreaking suppression which marked the first step The construction of Fusion II’s NPK (Nitrogen Phosphorus & Potassium) Fertilizer Plant has a production capacity of 2x100 thousand tons located in Palembang.

WIKA continued to work with Japanese construction company KAJIMA Corporation (KAJIMA) to continue developing the WIKA Engineering and Research Institute (WERI). This agreement was marked by the Signing of an Extension of the Memorandum of Understanding between the two companies at WIKA Tower 2.

WIKA signed a Memorandum of Understanding and Synergy Cooperation Agreement with Semen Indonesia, Semen Baturaja, Hotel Indonesia Natour and Pelindo III at the Ministry of BUMN.

WIKA Group achieved 4 Awards in the 2018 BUMN Award Event organized by BUMN Track Magazine. The awards received were: Top 2 Best Growth Strategies in the category of BUMN Tbk., Excellence in Interpersonal Relationship embedded in the CEO of WIKA Tumiyana, Top 2 Best Business Innovations for PT WIKA Gedung Tbk., and Top 2 Best Talent Development for PT WIKA Beton Tbk.

WIKA collaborated with Citra Consortium to Build Manila-Taguig Express Way Elevated Toll Road. This joint agreement was signed by the President Director of WIKA Tumiyana, Authorized Representative Citra Lamtoro Gung Persada Phillipines Sahra M. Mayor, and witnessed directly by the Minister of State-Owned Enterprises Rini M. Soemarno and President Director of PT Citra Persada Infastruktur Indrawan Sumantri.

Directors and management were present at the 2018 Public Expose on the Indonesia Stock Exchange in the 2018 Investor Summit event. On this occasion, the Board of Directors explained the update of the 2018 semester 1 financial statements and several corporate action plans.

MAY 11, 2018

JULY 18, 2018

MAY 17, 2018

AUGUST 12, 2018

MAY 30, 2018

AUGUST 27, 2018




MANAGEMENTREPORT

WIKA won again to achieved Indonesia Champion for ASEAN 2018 Construction Sector, which was given directly by Hermawan Kartajaya as Founder and CEO of MarkPlus Inc., to WIKA Agung I Wasito’s Director of Operations I at Raffles Hotel Jakarta at the 4th ASEAN Marketing Summit.

Indonesian President, Joko Widodo, and Minister of State-Owned Enterprises Rini M. Soemarno reviewed the 450 Watt electricity connection program which was also initiated by WIKA for 100 thousand families who were considered less capable in Bogor Regency.

WIKA obtained the honor of being the only SOE selected to be visited by the Singapore Business Federation (SBF) Delegation at WIKA Headquarters.

In the 2018 IMF & World Bank annual meeting, WIKA optimized opportunities and reaches several strategic dealing businesses with several countries. Some of them are agreements to build residential houses and office buildings with The Development Bank of Rwanda and the construction of tin smelters in Nigeria facilitated by the Indonesian Exim Bank.

WIKA was included in the Best of the Best category by Forbes Indonesia magazine. This award was given to the 50 best Indonesian companies in the Forbes Indonesia ranking. This award was received by WIKA’s Corporate Affairs Manager Satrio Adji at the gala dinner and the awarding night which took place at Shangri-La Hotel, Jakarta.

SEPTEMBER 6, 2018

DECEMBER 2, 2018

SEPTEMBER 18, 2018 OCTOBER 11-14, 2018

NOVEMBER 30, 2018


COMPANYPROFILE




WIKA’s President Director Tumiyana and PT Angkasa Pura II (Persero) (“AP II”) President Director Muhammad Awaluddin signed a memorandum of understanding on the synergy of SOEs and/or Subsidiaries in the operation and maintenance of airports managed by AP II

WIKA Together with PT Angkasa Pura II (Persero) agreed on the process of exploring the construction of the Soekarno-Hatta International Airport Integrated Building Hotel through the signing of a Memorandum of Understanding.

A.N.S. Finance Director Kosasih won the award as the first winner in the Indonesia Best Chief Financial Officer Award 2018. Indonesia Best Chief Financial Officer Award 2018 is a regular event organized by SWA magazine in order to appreciate the professional development in finance that was held at the Shangri-La Hotel in Jakarta.

WIKA’s Operations Director, Destiawan Soewardjono won the Best Industry Marketing Champion Construction Category award at the 2018 The Best Marketer of the Year (MOTY) event organized by Mark Plus Inc.

WIKA won the CFO Innovation Awards for Excellence in Supply Chain Finance at the 2018 CFO Innovation Awards.

OCTOBER 21, 2018

DECEMBER 11, 2018

NOVEMBER 29, 2018

DECEMBER 4, 2018 DECEMBER 7, 2018

WIKA was successfully selected as the winner in international event Year in Infrastructure 2018 Award held by software provider Bentley in London, England. WIKA won 1st place in the Advancements in Bridges Category at the Design and Build Project of Road Bridge at Teluk Lamong Port Project 2018 and 1st Place in the Advancements in Environmental Engineering Category on the Landside Disaster Protection Project on the National Road Network 2018.

OCTOBER 19, 2018




MANAGEMENTREPORT

CORPORATEACTION

PERIOD DESCRIPTIONNOMINAL

VALUE (RP)

OFFER PRICE(RP)

NUMBER OFSHARES ISSUED

ISSUED AND FULLY PAID UP CAPITAL

NUMBER OFSHARES

TOTAL NOMINALVALUE (RP)

TOTAL OFFER PROCE

(RP)

BEFORE IPO 4,000,000,000 4,000,000,000

2007 Initial Public Offering 100 420 1,846,154,000 5,846,154,000 584,636,750,000 775,384,680,000

2009 Exercise ESOP/MSOP 100 322.74 213,500 5,846,367,500 584,636,750,000 68,904,990

2010 Exercise ESOP/MSOP 100 322.74 155,173,000 6,001,540,500 600,154,050,000 50,080,534,020





2016 Limited Public Offering 100 2,180 2,820,726,372 8,969,951,370 896,995,137,000 6,149,183,490,960

As of December 2018, WIKA has never been subject to sanctions for the temporary suspension of stock trading (suspension) and/or the elimination of delisting.

Table of Corporate Action of WIKA

TEMPORARY TERMINATION OF STOCK TRADING(SUSPENSION) AND/OR DELISTING OF SHARES REGISTRATION (DELISTING)


COMPANYPROFILE




31

Tamansari Parama Jakarta

PT WIJAYA KARYA (Persero) Tbk. Annual Report 2018

COMPANYPROFILE




MANAGEMENT REPORTS34

42

Board of Commissioners’ Report

Board of Directors’ Report

Jakarta Giant Sea Wall




MANAGEMENTREPORT

BOARD OF COMMISSIONERS’ REPORT

President CommissionerDR. IR. IMAM SANTOSO, M.SC.


COMPANYPROFILE




“THE BOARD OF COMMISSIONERS CONSIDERS THAT THE BOARD OF DIRECTORS HAS SHOWN OPTIMAL PERFORMANCE,

ESPECIALLY THROUGH THE STRATEGIC POLICIES OF THE BOARD OF DIRECTORS WHICH ARE CARRIED OUT

APPROPRIATELY AND DIRECTED.”

Dear Shareholders and other stakeholders, Thank you to the presence of God Almighty that in 2018, WIKA again recorded a significant step in carrying out its strategic role as an entity that helped support Indonesia’s economic development. Thanks to the protection and grace of God Almighty, WIKA succeeded in realizing aspirations and even surpassing the planned target.

On this occasion, allow me to represent the Board of Commissioners to deliver WIKA’s performance reports throughout 2018. Through this report, the Board of Commissioners will deliver an assessment of the Directors’ performance, oversee the implementation of the Company ’s strategy, view the business prospects prepared by the Board of Directors, implement Good Corporate Governance, evaluation of the Board of Commissioners’ supporting committees, changes in the composition of the Board of Commissioners, and the frequency and manner of providing advice to members of the Board of Directors.

All duties and responsibilities have been carried out in accordance with the Company ’s Articles of Association and laws and regulations. The Board of Commissioners has ensured that the operational activities of the Company have referred to a business plan that has been established, managed on a regular basis professional, in accordance with the interests of shareholders and other stakeholders, and as well as ensure compliance with all regulations and current regulation.




MANAGEMENTREPORT

INDONESIAN ECONOMIES GLOBAL DEVELOPMENT

World economic growth in 2018 continues to improve. Even so, some risks continue to overshadow. The economies of developed and developing countries in 2018 still lead to recovery despite the pace of moderation compared to 2017.

Global factors such as the high sentiment of trade wars between the US and China, geopolitical risks in the Middle East and the Korean Peninsula, as well as the increase in world oil prices play a role in the increasing uncertainty of global financial markets. From the domestic side, pressure also comes due to increased demand for foreign exchange for the needs of foreign debt payments, payment of dividends and imports.

In the first quarter of 2018, solid economic growth occurred widely which was generally supported by increased investment. The increase in the level of demand has also contributed to the increase in commodity prices, especially world crude oil commodities. The increase in oil prices was also caused by a decline in production and geopolitical tensions involving oil-producing countries.

Even though the level of economic activity globally is still very solid, the rate is slowing down in 2018, which shows that the peak of global economic recovery has occurred at the end of 2017. This is also evident in the global trade and manufacturing index which is in a slowing trend despite growth positive and in a high enough position.

Global conditions also influence the economic conditions in the country, as seen from the exchange rate of the Rupiah against the US Dollar which continues to be weakened. Despite the heavy external pressure, Indonesia’s economic growth is still well maintained. One of them is seen from economic growth which is above 5%.

This achievement is a very positive thing which proves that even though it is under global pressure, Indonesia’s economic growth is still experiencing a strong momentum of growth. Economic indicators for the fourth quarter of 2018 showed that private

consumption remained strong, supported by maintained consumer purchasing power and confidence and the positive impact of election preparation. The quarterly quarter in the last three years shows that household consumption is still relatively well maintained, growing above 5% during 2018. This figure is far better than 2017 and 2016, which a few quarters decreased below 5%. This achievement was also supported by the inflation assumption that was in line with the target because it was successfully controlled at the level of 3.13% from the target of 3.5%. Overall economic growth in 2018 reaches 5.15% of the 2018 State Budget target of 5.4%. The difficulty of achieving these macro assumptions is due to the influence of global economic uncertainty.

ASSESSMENT OF DIRECTORS’ PERFORMANCE

The Government’s focus, which still emphasizes the acceleration of infrastructure, is becoming an added value for WIKA, which runs the core business in the construction sector. During 2018, the Company has succeeded in increasing revenue in almost all segments it has. Revenue from infrastructure and building segments in 2018 reached Rp20.60 trillion, an increase of 20.32%, from Rp17.12 trillion in 2017.

Meanwhile, industry segment revenues reached Rp4.12 trillion, increasing by 13.80% compared to Rp3.62 trillion in the previous year. While the income of the energy and industrial plant segments reached Rp5.12 trillion, an increase 29.28% compared to 2017 of Rp3.96 trillion. The growth of the three operating segments of the Company has succeeded in increasing total revenue by 19.03% in 2018. Such improvement in operational performance has had an impact on increasing the Company ’s assets and profits. The Company ’s assets increased by 29.65%, while profits attributable to owners of the parent entity increased by 52.89% in 2018.

For this achievement, the Board of Commissioners gave a tremendous appreciation to the Directors who had worked hard and achieved the targets that had been planned, even exceeding the target. The Board of Commissioners considers that the Board of Directors has shown optimal performance, especially through


COMPANYPROFILE




the strategic policies of the Board of Directors which are carried out appropriately and directed. The Board of Commissioners evaluates the performance of the Board of Directors based on the Key Performance Indicator (KPI) which summarizes the targets that must be achieved by the Board of Directors in the current year.

The Board of Directors’ performance assessment is also carried out based on the achievement of targets set in the Company ’s RKAP that are agreed together by considering external capacity and conditions. From the aspect of the target of the new contract, the Board of Directors managed to realize the achievement of Rp50.56 trillion. While from the financial aspect, the Board of Directors managed to achieve the sales target of 79.01% and the net profit exceeded the target of 110.50%. Assessing that amid the challenges of economic conditions, both nationally and globally, as well as ever increasing business competition, the Board of Directors has sought various strategic steps so that the Company continues to survive and grow sustainably.

Some of the main strategies outlined by the Board of Commissioners are the success in launching an alternative expansion of Global IDR Bond and Perpetual Notes as funding sources. A funding alternative that has been proven to succeed in accelerating WIKA’s performance and further strengthening WIKA’s capital structure. Apart from that, the expansion strategy was also expanded by expanding to several international markets, including Algeria, Philippines, Taiwan, Malaysia, Nigeria, and others. The efforts have shown the results where WIKA is trusted to carry out projects and to create innovations in these countries.

COMPANY SOUNDNESS LEVEL

The level of soundness of the Company measured by Decree of the Minister of State-Owned Enterprises Number: 100/MBU/2002 shows that overall realization of the Company ’s sound level score in the year 2018 is 81.75 with a qualification of AA and SOUND. The measurements are based on performance Company covering operational, financial aspects and administration.

SUPERVISION TO STRATEGY IMPLEMENTATION OF THE COMPANY

The Board of Commissioners always places oversight on the implementation of the Company ’s strategy as one of the priorities. All operational activities and financial management are always carried out based on best practices on the principles that apply according to the laws and regulations. Towards the Board of Directors, the Board of Commissioners carries out responsibilities by providing constructive and solutive advice and recommendations in facing challenges. One thing that has always been emphasized by the Board of Commissioners to the Board of Directors is to always prioritize compliance aspects and good corporate governance principles.

The Board of Commissioners’ oversight of the performance of the Board of Directors is also carried out through meetings held at least once a month, including periodic submissions of the Company ’s Business Results Evaluation and Performance Progress Reports per Directorate. Meetings held consist of Joint Meetings of the Board of Commissioners of the Board of Directors, and Rakomsus which are held to discuss specific events when needed. Supervision of the Board of Commissioners is also assisted by the Audit Committee, Nomination, Remuneration and GCG Committee.

In addition, the Board of Commissioners supervises the field directly by visiting the location of the Company ’s strategic projects and subsidiaries. During the visit, the Board of Commissioners checked whether the work that has been carried out was in accordance with the quality, contract, and meeting customer expectations.

THE VIEW OF THE IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE

The implementation of good corporate governance is always the focus of the duties and responsibilities of the Board of Commissioners in conjunction with the Directors. In 2018, the Board of Commissioners




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considers that the Board of Directors and all WIKA elements have implemented good corporate governance principles, namely Transparency, Accountability, Responsibility, Independence and Fairness. These principles are the important key points to always be run with full awareness so as WIKA always goes well, has high performance without sacrificing independence and responsibility.

Overall, the Board of Commissioners considers that the Company has implemented the best corporate governance, risk management and internal control guidelines. From time to time, the Board of Commissioners sees the Company as having a strong commitment to continually improve the implementation of Good Corporate Governance (GCG) and realize it consistently. The realization of this commitment can be seen from various awards in the field of compliance as well as the acquisition of 2018 GCG assessment scores which reached 94.949 with the title “Very Good”.

PERFORMANCE ASSESSMENT OF COMMITTEES UNDER BOARD OF COMMISSIONERS

The implementation of the duties and responsibilities of the Board of Commissioners in agreement and accountability are supported by the Audit and the Nomination Committee, as well as the Remuneration and GCG Committee. During 2018, the Audit Committee carried out its duties including contributing to the Board of Commissioners through reviewing financial information, reviewing the implementation of risk management activities, reviewing the results of the audit of the Internal Audit Unit and KAP on the Internal Control System. While the Nomination, Remuneration and GCG Committee has carried out its duties among others by giving approval to the Board of Commissioners on the Nomination, Remuneration of the Board of Commissioners and Directors, monitoring negotiations on Company activities, and GCG implementation.

In 2018, the Board of Commissioners considers that these committees under the supervision of the Board of Commissioners have been conducted their

respective functions effectively with constructive input and direction to the Board of Commissioners.

VIEWS AND ROLE IN MANAGING THE WHISTLEBLOWING SYSTEM (WBS)

As one of the points of implementation of Good Corporate Governance (GCG) principles, WIKA always strives to ensure that the Whistleblowing System (WBS) can increase awareness and initiative towards monitoring violations in the Company as a means of preventing, disclosing violations or fraudulent acts within the Company, including Insider Trading, Fraud, Money Laundry, Anti-Bribery and Corruption (ABC), discrimination and other irregularities. For this reason, socialization and refinement will continue to be carried out so that internal and external parties can participate in overseeing the Company ’s performance and jointly build a clean WIKA.

Throughout 2018, the Board of Commissioners actively engages and oversees the effectiveness of WBS implementation in the Company. Every report received in the WBS will be processed by the GCG Compliance Team, Fact Finding Team, and the Honorary Council of Employees with the involvement of the Directors and Commissioners as determinants of the decision. The report is certain to be followed up explicitly with appropriate and balanced sanctions. From the follow up actions, it is expected that there will be a deterrent effect for the perpetrators of the violations as well as a warning to those who have the intention to commit violations.

During 2018 there were no reports of violations submitted through the WBS. The Board of Commissioners supports every effort to encourage WIKA’s commitment to clean and accountable business practices.

FREQUENCY AND MECHANISM IN GIVING ADVICES TO THE BOARD OF DIRECTORS

The Board of Commissioners has an obligation to provide recommendations and advice to the Directors.


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Apart from going through meetings and field visits, the Board of Commissioners gave them in written. Each plan submitted by the Board of Directors will be followed up by the Board of Commissioners to ensure that its implementation is always in line with the rules and aspirations of Shareholders.

The Board of Commissioners reviews every proposed work plan that is submitted to then provide input, criticism, reminder, and feedback for the Board of Directors as a part of supervision function. The assessment process is also carried out by involving committees with due regard to field conditions, human resource capacity and other considerations. In 2018, the frequency of counseling of the Board of Commissioners was carried out more intensively as the issuance of Perpetual Notes and Komodo Bond. In this case, the use of the collected funds must be approved by the Board of Commissioners. Internal meetings of the Board of Commissioners continue to be held to obtain input from the Committee.

VIEWS ON THE PROSPECTS THAT HAVE BEEN DESIGNED BY THE BOARD OF DIRECTORS

The Board of Directors has compiled the 2019 RKAP and has been approved by the Board of Commissioners by highlighting the net profit target and the significant increase in new contracts. The Board of Commissioners support the preparation of the RKAP considers that the planned target is in accordance with the predictions of the economy, market, politics, and community conditions in 2019 and in accordance with WIKA’s capabilities and capacity. The Board of Directors fully understands that future development trends will increasingly demand quality, innovation, connectivity and technology. The Board of Directors is able to prepare the Company to be able to accommodate these needs along with meeting the Company ’s support for national strategic projects.

The Board of Commissioners realizes that the challenges in 2018 will not be easier compared to 2017. Indonesia’s macroeconomic conditions are estimated to remain in the economic growth range of 5.1-5.3%. However, challenges from externally, especially from

the aspect of global economic conditions and the geopolitical situation, still overshadow and have the opportunity to put pressure on domestic economic conditions.

2019 will be a year of democracy with the Presidential and Legislative General Elections simultaneously which will affect the economy more or less. Facing these conditions, the Board of Commissioners hopes that business conditions will remain stable and security will be maintained. In 2019, infrastructure projects under the auspices of national strategic projects will also continue. The target of WIKA’s new contract in 2018 is Rp50.56 trillion, which is increasing to Rp61.74 trillion in 2019. The Board of Commissioners is optimistic that this new contract target will be achieved and the Company ’s profits will soar. Especially with the APBN which still emphasizes much on infrastructure so that WIKA hopes to be able to win more contracts and continue to build the country.

The Board of Commissioners sees that WIKA is a large entity. To maintain its existence, WIKA must maintain high margins, avoid stagnation, and be increasingly expansive. The Board of Commissioners also appealed for the profit allocation obtained and the use of collected funds to be used maximally to encourage the growth of the Company with a strategy that is right on target and guided by GCG principles so that WIKA stays in the proper corridor.

In 2019, it will also mark the big step of two subsidiaries that will conduct Initial Public Offering (IPO), namely Wika Realty and WIKA Industri & Konstruksi. The Board of Commissioners hopes that the IPO will run smoothly and raise massive funds that will support WIKA’s expansion. Through this IPO, it is also a hope for WIKA to provide multiple effects for the wider community in all parts of Indonesia. The community is increasingly empowered, the absorption of labor is increasing, and Indonesia is increasingly prosperous. The Board of Commissioners believes that with the Board of Directors’ prudent strategic policies and applicable regulations, market fluctuations will be well dealt with.




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CHANGE OF THE BOARD OF COMMISSIONERS COMPOSITION

In 2018, the composition of the Company ’s Board of Commissioners has changed as follows:

Period of January 1, 2018-April 24, 2018, the Board of Commissioners amount to 6 (six) people consisting of 1 (one) President Commissioner, 3 (three) Commissioners and 2 (two) Independent Commissioners. All members of the Board of Commissioners are domiciled in the working area of the WIKA Head Office.

Period of January 1, 2018 – April 24, 2018

NAME POSITION

Imam Santoso President Commissioner

Eddy Kristanto Commissioner

Freddy R. Saragih Commissioner

Liliek Mayasari Commissioner

Nurrachman Independent Commissioner

Imas Aan Ubudiah Independent Commissioner

Period of April 24, 2018 – December 31, 2018

NAME POSITION

Imam Santoso President Commissioner

Eddy Kristanto* Commissioner

Freddy R. Saragih Commissioner

Liliek Mayasari Commissioner

Imas Aan Ubudiah** Independent Commissioner

Suryo Hapsoro Tri Utomo Independent Commissioner

Achmad Hidayat Independent Commissioner

Period of April 24, 2018-December 31, 2018, the Board of Commissioners consists of 7 (seven) people consisting of 1 (one) President Commissioner, 3 (three) Commissioners and 3 (three) Independent Commissioners. All members of the Board of Commissioners are domiciled in the working area of the WIKA Head Office.

*) Based on the Resolution of Extraordinary General Meeting of Shareholders March 25, 2019, he is no longer servesmas member of the Board of Commissioners**) As of September 20, 2018, she has been registered on the List of Permanent Candidates for Indonesian Parliament Members 2019 General Election. According to Article 14 paragraph 29, she is no longer fulfill the requirements as a Board of Commissioners member due to the prohibition of concurrent positions as candidates of he House of Representatives of the Republic of Indonesia.


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President Commissioner

DR. IR. IMAM SANTOSO, M.SC.

CLOSING AND APPRECIATION

For the excellence performance achievements that have been engraved in 2018, the Board of Commissioners appreciate the Board of Directors, Management and all of PT Wijaya Karya (Persero) Tbk.’s employees for the hard work that has been deployed so as the Company can continue to incite positive performance. Our appreciation also delivers to all business partners, raw material suppliers and surrounding communities who support the Company ’s best contribution to all stakeholders.

WIKA is an enormous company. To that end, the Board of Commissioners invites all WIKA people to jointly maintain and build WIKA to grow bigger and become more beneficial for the community, the country and the nation. The sense of belonging as part of the WIKA extended family will be a motivating force to work with heart and responsibility. Hopefully the sustainable growth that we aspire together will always encourage the spirit to gain excellence in the coming years.

On behalf of the Board of Commissioners




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President DirectorIR. TUMIYANA, M.B.A.

BOARD OF DIRECTORS’ REPORT


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“WIKA’S CAPACITY HAS ALSO GROWN EVEN BIGGER AS REFLECTED IN VARIOUS EXCELLENT ACHIEVEMENTS IN

OPERATIONAL, FINANCIAL, BUSINESS CAPACITY, HUMAN RESOURCES AND OTHER ASPECTS. AN EXTRAORDINARY

LEAP OF BUSINESS THAT DRIVES WIKA’S FINANCIAL AND OPERATIONAL PERFORMANCE TO A SATISFYING

ACHIEVEMENT.”

Dear shareholders and stakeholders,Thank you to the presence of God Almighty that in 2018 we managed to maintain the momentum of sustainable growth. Although faced with various challenges and dynamics that occur throughout the year, the Company managed to close 2018 by expanding, innovating, and preparing to grow more significantly the following year. It is an honor for me on behalf of the Board of Directors to present the Annual Report of PT Wijaya Karya (Persero) Tbk. for the 2018 financial year.

DEVELOPMENT OF GLOBAL AND INDONESIAN ECONOMIES

In 2018, global economic conditions are faced with a number of uncertainties caused by several things, such as the Federal Reserve that raised interest rates three times during 2018, the United States-China trade war, the Turkish crisis, and the political crisis and financial turmoil in Italy. This has a considerable effect on the economic conditions in the country. This is reflected in the exchange rate of the Rupiah against the US Dollar which continued to be weakened. Coupled with the condition of Current Account Deficit (CAD) which continued to widen due to the export performance that grew lower than imports. This condition indicates a decline in investor confidence in emerging markets.




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In the midst of unfavorable global economic developments, the performance of the Indonesian economy in 2018 is still quite good with sustained stability and continued growth momentum. In fact, the Central Statistics Agency said that Indonesia’s overall economic growth in 2018 was 5.17% or the best since the last five years. Although economic growth reached 5.17% or the best since 2014, this value still has not reached the target. In the 2018 State Budget, Indonesia launched a basic economic assumption in the form of economic growth of 5.4%.

If viewed from the expenditure component, economic growth throughout 2018 shows the contribution of exports as a source of negative economic growth of 0.99%. However, when viewed from cumulative growth in 2018 compared to 2017, exports grew 6.48%. Despite the growth, the export figure was lower than the import growth which shot 12.04%. This negative export is a declining factor of the rate of economic growth. While Indonesia’s economy in 2018 was mostly supported by household consumption of 2.74%. The household consumption has recovered and grown according to the trend at 5.05% cumulatively in 2018.

Since 2015, the government has shifted subsidies to productive spending, namely infrastructure, health and education. The infrastructure budget continues to increase from Rp155 trillion in 2014 to around Rp410 trillion in 2018. According to the 2018 World Bank Group report, Indonesia’s infrastructure competitiveness is ranked 52nd this year, improving compared to 2010-2013 which ranges from 70s. This increase shows the strategic role of the construction sector as a driver of the national economy.

Infrastructure supports the food security sector and the smooth production process, increasing accessibility and mobility space for the community towards social and economic activities. The strategic role of the construction sector can also be seen from the backward linkages with its supporting sectors and future linkages with sectors that utilize construction sector products. That is, the growth of the construction sector will be able to attract growth support cars and encourage the growth of other development sectors.

CONSTRAINTS FACED AND STRATEGIC POLICIES TAKEN

Fluctuations in the growth of the construction sector tend to coincide with fluctuations in economic growth. Along with the conducive economic conditions in 2018, we are proud to say that 2018 was a Quantum Leap pride for WIKA. With the completion of the major transformation carried out, the five pillars we have, namely Industry, Infrastructure & Building, Energy & Industrial Plant, Realty & Property, and Investment are now increasingly strengthened with additional business lines, namely Construction Engineering, and Integrated Transportation System. This initiative stems from WIKA’s passion to have a sustainable business. For this reason, expansion outside the service sector is an absolute thing that must be done to maximize the resources that have been owned.

WIKA’s business is now integrated from upstream to downstream. Knowledge that has been achieved during decades of business trips must be utilized optimally. From the focus of construction services in the middle stream, WIKA is now up and maximizing every potential line of business. EPC, Industry, Generating, and Energy, all of which are driven simultaneously as sources of recurring income. WIKA’s capacity has also grown even bigger as reflected in various superior achievements in operational, financial, business capacity, human resources and other aspects. An extraordinary leap of business that drives WIKA’s financial and operational performance to a satisfying achievement.

Sales in 2018 were recorded at Rp31.16 trillion, increasing 19.03% compared to Rp26.18 trillion in 2017 The biggest increase in sales level was the increase in sales in the segment of Industrial Segment by Rp5.46 trillion in 2018 or increased by 50,52% from 2017. The increase in sales has resulted in an increase in net income. In 2018, the Company posted a profit attributable to the owners of the parent entity amounted to Rp2.07 trillion, an increase of 52.89% compared to 2017 of Rp1.36 trillion.

In terms of financial position, the Company has succeeded in increasing total assets and equity. As of December 31, 2018, the total assets of


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the Company increased to Rp59.23 trillion from Rp45.68 trillion as at December 31, 2017. The increase in total assets reached Rp13.55 trillion or equal to 29.65%. This expansionary effort is also supported by an extraordinary leap in equity. In 2017, WIKA’s equity is at Rp14.63 trillion and we have successfully increased it to Rp17.22 trillion in 2018. Efforts to strengthen this balance sheet have become one of the ways to create a separate business that can encourage a sufficient balance sheet for WIKA.

Facing these conditions, WIKA was able to manage financial and operational performance and close 2018 with statement of profit of Rp2.07 trillion, positive cash flow of Rp2.68 trillion, and excess cash of Rp13.97 trillion. A performance that shows that WIKA is a solid entity. With this resistance, WIKA has the capacity to invest in a cost of fund that is maintained.

With business integration carried out, WIKA now has on hand contracts with the largest value in the industrial sector. The value of this contract also experienced a significant jump from Rp42.40 trillion in 2017, increasing considerably to Rp50.56 in 2018.

Strong initiation must be supported by a qualified engineering processor. Along with the surge in contract value that has been achieved, management conducted a massive evaluation of the readiness of Human Resources (HR) in WIKA. Regeneration is carefully prepared with targeted human development strategy support with the main goal of avoiding lag at the middle management level. Therefore, Human development is also an underlined initiation in 2018 to support the expansion and big dreams that WIKA is aiming for. Mind mapping is done in detail to find the potential generation that deserves to be included in the next line and bring WIKA to meet the potential of the business that will grow far greater.

Development and training are also given intensively to operational workers, especially for Project Managers. Existing Key Performance Indicators (KPIs) are rearranged with details that are sharper and more efficient. In addition, the hard competence of each personnel is increasingly developed with a roadmap that has been designed for the long term. All upper

level management are required to carry out knowledge transfer in order to support the acceleration of human development to achieve each target set in the KPI.

The biggest challenge in implementing strategic policies in 2018 was the demand to work harder and more detail in evaluating, determining, and implementing new standards consistently so that it immediately becomes a positive habit. All work plans, targets, programs and processes must be carefully reviewed, monitored and implemented.

In terms of competition challenges, WIKA’s success rate is in numbers 37% which means very good. In 2018 WIKA was increasingly expanding to succeed not only nationally, but also on the international competition map. In ASEAN, WIKA’s position has been in a calculated position as reflected in the Company ’s balance sheet, equity and market size which are included in the superior position qualifications.

In its ongoing business journey, WIKA also continues to be trusted to carry out projects that have significant value for the Country. Until 2018, WIKA was mandated to build as many as 47 strategic projects in Indonesia. These projects are include Pekanbaru-Padang Toll Road Project, the Construction of the Kijing Terminal, the Construction of the Patimban Cirebon Jetty, the Sadawarna Dam and the Randu Gunting Dam.

COMPARISON OF TARGETS AT THE BEGINNING OF 2018 AND THE ACHIEVEMENTS

In conformity with the massive transformation of the business process, operational order, and grand vision that is achieved through smart work and the synergy of all elements, the Company managed to accomplish the targets as stipulated in the Company ’s RKAP. Total new contracts are achieved at 88.32% of the target, along with 94.34% oder book. In addition, sales target is achieved at 79.01% of the target which pushed the Company ’s net profit to surpass the target at 110.50%.

From the comparison of targets and achievements, the Company has assessed the challenges and obstacles faced throughout the year. With the Company ’s




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ANALYSIS OF BUSINESS PROSPECTS

The International Monetary Fund (IMF) cuts its global economic growth forecast in 2019. This is as a result of trade tensions as well as rising interest rates for the US central bank. IMF predicts 2019 global economic growth will reach 3.5%, lower than 2018 economic growth of 3.7%.

For the Asian region, the IMF predicts that the Asian economy will grow 5.4% in 2019 and remind them to be vigilant about the global situation. As the frontline in the context of global economic growth, Asia has accounted for 60% of world economic growth. Inflation in Asia is expected to increase to 2.8% in the increase in commodity prices, but will remain below the target for some countries. While Indonesia is predicted to be able to maintain its growth at 5.1%.

2019 will be the year of democratic celebration along with the simultaneous implementation of the Presidential and Legislative Elections in Indonesia. WIKA is optimistic that global and national conditions that will occur along with political turmoil will not have a significant effect on economic conditions.

In 2019, the government will begin to shift the flagship program of infrastructure into a massive program to strengthen Human Resources. Nevertheless, the government still allocates the portion of the infrastructure budget in the 2019 RAPBN of Rp420.5 trillion, which is 17.2% of the total 2019 APBN expenditure of Rp2,439.7 trillion. In the 2019 RAPBN, the government allocated a budget of Rp420.5 trillion into the infrastructure budget. This figure rose by

around 2.46% compared to the allocation in the 2018 State Budget worth Rp410.4 trillion.

The Company is very optimistic that with an in-depth understanding of Indonesia’s enormous potential, WIKA will be able to open opportunities to continue to become the leading integrated construction services provider in Indonesia and achieve the goal of excelling in the international market.

WIKA enters 2019 with an on-hand contract of Rp123.51 trillion which is still feasible to work on for the next two years. To maximize it, human development is a crucial strategy that must be implemented so that all elements are ready to carry out contracts that are already in hand. To deal with possible fluctuations, WIKA’s cha

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