DREAM BELIEVE ACHIEVE
WIKA CORPORATE REPORT 2017 DREAM BELIEVE ACHIVE TABLE OF CONTENT
WIKA TODAY 02
HIGHLIGTS 04
MESSAGE FROM PRESIDENT DIRECTOR 08
BOARD OF DIRECTOR 10
FINANCIAL HIGHLIGHT 14
OPERATION AREA 16
BUSINESS LINES 20
BUSINESS PORTFOLIO 21
MILESTONE 24
VISION AND MISSION 27
CORE VALUES AND STRATEGY 28
CORPORATE VALUES 29
HUMAN CAPITAL 30
GOOD CORPORATE GOVERNANCE 34
CORPORATE SOCIAL RESPONSIBILITY 38
AWARDS AND CERTIFICATION 42
2 WIKA Corporate Report 2017 Increased by WIKA Dare To Dream Is the notion that WIKA has the will, imagination, vision, and 14.87% the expectation of what to achieve in the future. By 2020, Total Equity to USD 1,093.23 Million as of Desember 31, 2017 WIKA aspires to be one of the Best EPC and Investment TODAY Integrated Companies in Southeast Asia.
Increased by Believe 67.06% to USD 1,955.80 Million Sales WIKA dares not only to dream, but WIKA has Believe (brave as of Desember 31, 2017 with the believe that WIKA is able to answer the challenges of the dream with real action). The Company Wheels are not only limited to the courage to dream, but also the dream Amount to dare. What’s the point of having a dream, if you do not dare to realize it. Vice versa, why dare if you do not have a dream. The dream of becoming a leading company must be USD 3,168 Million accompanied by hard work to make it happen. New Contract
Achieve Increased by
WIKA can say they have been successful because WIKA 45.70% had a dream and was willing and able to Achieve (realizing to USD 3,413.31 Million Total Assets the promise that it believed together through real work) as of Desember 31, 2017 Furthermore, WIKA must be ready for all the risks it faces, and be strongly confident to answer all the challenges and obstacles it faces with brilliant work strategies and Increased by implementation. 28.04% to US$ 7,967.88 Million as Order Book of Desember 31, 2017 2018 Vision
Infrastructure development remains a priority for the Dream, Believe, Achieve Indonesian government in efforts to achieve quality economic Increased by growth. Considering the opportunities in construction, After 58 years of being active in infrastructure development into precast concrete manufacturing, WIKA had already in its homeland, PT WIJAYA KARYA (Persero) Tbk. [WIKA] established a number of concrete factories in various regions its expertise, and capabilities, WIKA is optimistic that the 13.52% has shown remarkable growth and development. From its across the archipelago. company will attain significant performance growth by to USD 89.81Million beginning as a company engaged in electrical installations as of Desember 31, 2017 the end of the fiscal year. WIKA will always innovate and Profit and water pipes, WIKA has transformed into one of the Many companies have dreams as high as the sky, wanting synergize in its aims to improve the quality and quantity of Attributable best engineering services, procurement, construction and to become leading companies in terms of operational to Parent its operations and ensure the right targets are set and met. investment company. performance, finance, with large number of employees and Entity Owner such forth. But in practice, many show that it’s all just a plan, During its journey of almost 6 decades WIKA has always with corporate actions being carried out without direction been brave enough to try something new and measurable. and purpose. However, WIKA is different. Before other companies had even thought about moving
2 WIKA Corporate Report 2017 WIKA Corporate Report 2017 3 HIGHLIGHTS 2017
January 20 February 28 March 29 April 15 April 25 May 08 July 14 August 17
WIKA signed a cooperation WIKA won Best Rights Offering WIKA in cooperates with The Tanjung Priok Access Toll WIKA signed a memorandum Groundbreaking construction WIKA and KAJIMA Corporate President Joko Widodo agreement with PT Pembangunan Award in the category Best Matiere Bridge Building Road project was officially of joint venture agreement with project Asembagus Situbondo, signed an MOU for Research inaugurated the Semanggi Pariwisata Indonesia for the Packages Equity, at The Asset Indonesia, representative opened by President Joko Shirdo, a Trading Company and East Java sugar factory. and Development (R & D) The Interchange built by WIKA with construction of roads and parks Regional Awards 2016 held at of French steel company in Widodo on Saturday, April 15, Contractor from South Africa. signing was carried out by WIKA the Minister of Public Works in the Mandalika area and the Four Seasons Hotel, Hongkong. Indonesia. This cooperation 2017. The 11.4 kilometer long The signing was carried out by President Director Bintang Basuki Hadimuljono and arrangement of pearl house is marked by an MoC signing road is expected to provide Director of Human Capital & Perbowo and KAJIMA Excutive Minister of Transportation Budi buildings on the Kuta beach - made by WIKA Director of excellent competitiveness with System Development, Novel Vice President Masayasu Karya Sumadi. Praya, Lombok Tengah, NTB. Finance A.N.S Kosasih and the speed of goods services to Arsyad and Biston Nyoni, Kayano. Matiere Chairman, Philippe and from Tanjung Priok Port. Shirdo. Matiere, witnessed by French President Francois Hollande.
September 07 September 12 October 16 October 20 November 28 December 04 December 19
WIKA received award as WIKA’s Subsidiaries successfully Republic of Niger President, H. President Joko Widodo WIKA received Indonesian Institute for President Joko Widodo inaugurated the President Joko Widodo inaugurated the Indonesia Champions for won Best State Owned E. Mr. Issoufou Mahamadou inaugurated the Nurul Bilad Corporate Directorship (IICD) award with Soreang - Pasir Koja toll road which is Surabaya - Mojokerto toll road IB, II & III ASEAN 2017 This award was Enterprise and Subsidiaries visited WIKA’s Head Office with Mosque located in Mandalika category of The Best State Own Enterproses expected to increase economic growth, sections The Toll Road was built by WIKA achieved after WIKA was chosen in Property Business Award Officials and a Delegation from Special Economic Zone (KEK), & Top 20 Big Capt Listed Company pada CG especially in the Soreang region and support connecting the city of Surabaya to the city of by the jury as a construction for Excellence Corporate Republic of Niger to and were Lombok - NTB. Conference and Awards. natural and agro tourism destinations in the Mojokerto and passes through four districts company that successfully Performance at BTN Golden welcomed by the Board of Bandung district. / cities, namely Surabaya, Sidoarjo, Gresik expanded its market abroad, Property Awards 2017. Directors and Commissioners. and Mojokerto. especially in ASEAN. This state visit was to recognize WIKA as a representatve from the Republic of Indonesia especially in the field of infrastructure development.
4 WIKA Corporate Report 2017 WIKA Corporate Report 2017 5 HIGHLIGHTS January 29 March 12 April 10 20
WIKA successfully lists Komodo bonds on the London Stock Exchange. WIKA’s Director of Operations III, Destiawan Soewardjono, receives WIKA is a key member of the delegation representing Indonesia WIKA’s “Komodo” bonds—bonds by which the Indonesian Rupiah a visit from the Afghan delegation. The highlight of the event was in the Indonesia Africa Forum (IAF). The Forum presented WIKA (IDR) is referred to— was oversubscribed by over 2.5 times, which the signing of the Memorandom of Understanding (MoU) which was with the opportunity to establish greater cooperation in the area demonstrates WIKA’s strong support and demand from global conducted by WIKA’s General Manager of Overseas Department, of infrastructure development with African countries. Discussion investors. The company raised 5.4 trillion Indonesian rupiah. Bond Yulianto along with the President Director of Haji Khalil Construction around sustainable development and infrastructure was fruitful, and proceeds will finance several key projects in WIKA’s portfolio that Ltd., Khalil Samar Gul. The agreement expresses the commitment WIKA’s plans and commitment to enabling a more prosperous Africa strategically align with Indonesia’s vision. both parties have towards a sustainable and successful future and connectivity was well received by the African delegation. 18 together in development.
April 10 April 24 May 25 July 11
WIKA partners with Zimbabwe to develop housing that would improve WIKA hosts an annual General Meeting of Shareholders for the 2017 WIKA solidifies its commitment and signs a MoU as part ofthe WIKA has once again made it into the ranks of the 25 most socially the living standards of its citizens. WIKA executives met with delegates fiscal year. The panel of executives shared WIKA’s performance for Citra Consortium Manila-Taguig Express Way (MTEx) development responsible companies in 2018 at the Indonesia Green Company of the Zimbabwean government to discuss its plans to build several the year, the progress it has made in efforts to become one of the project in the Philippines. The project, an elevated toll road project Achievement event. The award presented to WIKA is a testament to housing developments in the country. The meeting reinforced the best EPC and investment integrated companies in Southeast Asia. in Manila worth US$830.41 million, is critical to strengthening Wika’s its success in the field of corporate social responsibility. partnership and WIKA’s commitments to help promote the country’s Shareholders also voted on critical agenda items proposed by the presence and portfolio abroad, especially in the ASEAN region, where economic development and growth. This housing project is one of management team. The meeting proved to be constructive and it has successfully completed several major projects such as the a multitude of projects in diverse sectors that the nation is actively productive and positions WIKA well for a successful fiscal year ahead. Limbang Cable Stay Bridge in Malaysia and the Maubin Pyapon Road pursuing in efforts to optimize the African market. Rehabilitation Project in Myanmar.
6 WIKA Corporate Report 2017 WIKA Corporate Report 2017 7 MESSAGE FROM BEING PRESIDENT GOOD DIRECTOR IS NOT ENOUGH, Change, for many companies, may seem overwhelming. The In the implementation of each project, WIKA always ability to control fear and manage change, however, musters emphasizes the concept of “Cost, Quality, Time”. That is, WIKA MUST the energy to excel and achieve—a notion deeply ingrained we always try to make every project that we work on has in WIKA’s beliefs. superior quality, but without relinquished the efficiency and effectiveness aspects. This is what makes us adept to survive AIM TO BE Being good is not enough, WIKA must aim to be great. WIKA is in the competition in the construction sector. These values a state-owned enterprise that first entered the foreign market are unique and provide a strong and consistent foundation ahead of competitors, which demonstrates that our company to encourage every WIKA resources in winning competition GREAT. does not merely exist in the present, we have intertwined our not only in the domestic market, but also in the global roots with Indonesia’s history in development. Although we market. have grown to become a leading company in the country, which is a great achievement, we have also continually WIKA’s successful track record and its ability to excel and transformed and repositioned ourselves as a world-class exceed targets were made possible by its human capital SOE and competitive player in the international arena. and strong financial condition. In keeping the business Ir. Tumiyana, M.B.A. sustainable and profitable, WIKA has expanded its expertise President Director WIKA also believes in applying best practices for every line of beyond construction and into infrastructure development work in the business and regularly benchmarks itself against with a particular focus on investment programs. Capturing competitors. Doing so increases the company’s network and investment opportunities in various infrastructure sectors, allows us to form strategic partnerships to execute domestic such as energy and transportation, enables the company and international projects. to succeed, thrive, and further expand. We are optimistic of WIKA’s future and its ability to capture the opportunities that In pursuing overseas markets, WIKA is gradual and strategic lie ahead. in its approach and focuses its development in markets it has a presence in and where it has leverage and competitive advantage. Such strategies have enabled WIKA to successfully Ir. Tumiyana, M.B.A. penetrate the construction market in many countries in President Director Africa, Southeast Asia, and the Middle East.
8 WIKA Corporate Report 2017 WIKA Corporate Report 2017 9 BOARD OF
Agung Budi Waskito, S.T.,M.Tech Director of Operation I
DIRECTOR Mr Agung Budi Waskito was born on Boyolali July 17th, 1971. Began his career in PT WIJAYA KARYA (Persero) Tbk. Agung who completed the strata 1 civil engineering at the University of Gadjah Mada in Yogyakarta has held various key positions in the Department of Operations, such as: Division Manager 4 in 2015-2016, General Manager of Marketing Department in 2016- 2017 and General Manager of Civil 1 Department. Agung holds master degree in water resource from Indian Institute of Technology then becomes Director of Operations I PT WIJAYA KARYA (Persero) Tbk. since April 24th, 2018.
Ir. Tumiyana, M.B.A. President Director
Indonesian citizen, born on February 10 in 1965 in Klaten, Indonesia, has been appointed as President Director since April 24, 2018. Previously, he served as Ir. Bambang Pramujo, M.T. President Director in PT Pembangunan Perumahan (Persero) Tbk. since 2016 and Director of Operation II Financial Director of PT Pembangunan Perumahan (Persero) in 2008-2013 periods and has other important positions in the company. He holds a Masters degree in Indonesian citizen, born in Wonogiri June 13, 1957. Currently he is the Operation Director of PT Management from IPWI and holds his Bachelor Degree in Engineering from the Wijaya Karya (Persero) Tbk since April 25, 2013. In addition, he is the President Commissioner University Borobudur, Jakarta. of PT Wika Rekayasa Konstruksi since 2013. Bambang Pramujo began his career in PT Wijaya Karya (Persero) Tbk. since 1984 and has held several important positions in the Company and its subsidiaries, including: Commissioner of PT Wika Insan Pertiwi (July-October 2013) and President Commissioner of PT Marga Nujyasumo Agung (MNA). He was also General Manager of several business units, for example EPC Dept., Dept. Energy, Utilities Dept., and Industrial Plant Dept. Antonius N.S. Kosasih, S.E., M.M.FI. (2005-2013). He holds a Masters Degree in Civil Engineering from the University of Indonesia. Director of Finance
Indonesian citizen, born in Jakarta on July 12 in 1970, He has been appointed as Director of PT WIJAYA KARYA (Persero) Tbk. since April 28, 2016. Previously, he served as President Director of PT Transportasi Jakarta (Transjakarta) from 2014 to early 2016 and Finance Director of Perum Perhutani, Indonesia’s largest forestry company in the service period of 2008 – 2012. He was awarded as one of “Top 5 Indonesia Best CFO” for 3 consecutive years: 2010, 2011 and 2012 from SWA Ir. Destiawan Soewardjono, M.M. Business Magazine and Prasetiya Mulya Business School for his contribution in Director of Operation III turning around Perum Perhutani. In 2016, he was voted and awarded as “Best CFO in Indonesia” by Alpha Southeast Asia, an international business and finance Indonesian citizen, who was born in Surabaya on April 10, 1961. He has become the Operation magazine, for his contribution a the CFO of PT WIJAYA KARYA (Persero) Tbk. He Director of PT Wijaya Karya (Persero) Tbk. since April 25, 2013. Destiawan Soewardjono started holds a Master Degree in Finance and Investment from IPMI and holds his Bachelor his career in PT Wijaya Karya (Persero) Tbk. since 1988 and other operational positions in WIKA Degree in Economics from University of Gadjah Mada. As his service towards the as the General Manager of Overseas Division (2012-2013), Manager of Overseas Division (2008- community, Antonius N.S. Kosasih dedicates his spare time to teach in University 2011), and Project Manager of East West Motorway – Aljazair (2009-2010), He earned his Master of Indonesia, Master of Management School of Business, Faculty of Economics and degree in Management from University of Gadjah Mada, Yogyakarta in 2008 and his Bachelor Degree in Civil Engineering from University of Brawijaya, Malang in 1987. Business.
Ir. Novel Arsyad, M.M. Director of Human Capital and Development
An Indonesian citizen of 49 years old born in Surakarta on September 30, 1967. He graduated from Universiras Islam Indonesia in Yogyakarta with a Bachelor’s degree in Civil Engineering and from Bina Nusantara University with a Master’s degree in Strategic Management in Danu Prijambodo, S.T., Master Medea. 2012. He currently lives in Jakarta and has been serving as the Director of Human Capital and Director of QSHE Development since March 17th, 2017. Mr Danu Prijambodo was born on Cirebon December 17th, 1969. Began his career in PT PGN Mr. Arsyad began his career at PT WIJAYA KARYA (Persero) Tbk. in Building Division as a (Persero) Tbk. Danu who completed bachelor degree in civil engineering at the University of Technical section staff at Bank Pelita Jakarta Project on December 20, 1991. Since then, he has Hasanuddin in Makassar has held various key positions in PT PGN (Persero) Tbk, such as: held various positions, such as the Head of Solo Paragon Project, Manager of The Adhiwangsa Technical and Operation Director, Group Head Program Management Office (2015-2016) , Group Residences Project and Mall Surabaya Project, Manager of Business Development, Division Head Business Infrastructure (2017-2018). Danu who hold master degree in management ed Manager and General Manager of Building Construction Department and President Director Economia from Scuola Superore Enrico Mattei, Italy then becomes Director of QSHE PT WIJAYA of Wika Gedung. KARYA (Persero) Tbk. since April 24th, 2018.
10 WIKA Corporate Report 2017 WIKA Corporate Report 2017 11 ARUK CROSS COUNTRY BORDER POST Development of Border Posts in the Aruk area, West Kalimantan, to support immigration, customs, quarantine, security and improve the welfare of the community. It also fulfilling Government aspiration contained in Nawacita, which is 12 WIKA Corporate Report 2017 WIKA Corporate Report 2017 13 believed will create new economy and equality of the people around the border. Total project construction cost USD22.60 million, finished in 2 years. FINANCIAL
Industry 2017 2016 Growth Realty and Property 2017 2016 Growth
(In million US$) (In million US$) HIGHLIGHTS New Contract 496.76 319.69 55.39 New Contract 146.53 249.75 -41.33 Order Book 620.50 418.87 48.14 Order Book 227.13 314.05 -27.68
Total Revenue 374.07 252.81 47.96 Total Revenue 112.92 152.53 -25.97
Cost of Revenues -329.74 -218.15 51.15 Cost of Revenues -87.26 -120.90 -27.83
WIKA and Its Subsidiaries Consolidated Statement of Financial Position as of Profit (Loss) from Joint Venture 0.03 - - Profit (Loss) from Joint Venture - - -
December 31, 2017 Profit before tax 22.75 18.80 20.99 Profit before tax 18.10 22.58 -19.82
Net Income 17.34 13.63 27.18 Net Income 16.63 22.28 -25.36
Description 2013 2014 2015 2016 2017 Profit Attributable to Parent Profit Attributable to Parent 7.67 5.73 33.70 15.41 19.69 -21.76 Entity Owner Entity Owner Financial Position (in million US$)
Total Asset 941.05 1,192.41 1,469.40 2,342.74 3,413.31
Total Liabilities 706.47 825.21 1,059.33 1,391.01 2,320.08
Total E uity 234.58 367.20 410.07 951.73 1,093.23 Infrastructure and Building 2017 2016 Growth Energy and Industrial Plant 2017 2016 Growth Result of operations ( in million US$) - - - - - (In million US$) (In million US$) Net Sales 887.98 931.20 1,017.64 1,170.71 1,955.80 New Contract 1,973.48 2,962.37 -33.38 New Contract 551.36 559.91 -1.53 Net Income 46.65 58.40 53.45 90.48 101.32 Order Book 5,953.69 4,572.91 30.19 Order Book 1,166.56 917.25 27.18 Profit Attributable to Parent Entity Owner 42.58 47.88 47.46 79.12 89.81 Total Revenue 1,299.17 558.94 132.44 Total Revenue 300.73 257.10 16.97 Profit Attributable to Non Controling Interest 4.07 10.52 5.99 11.36 11.51 Cost of Revenues -1,182.44 -491.93 140.37 Cost of Revenues -268.48 -226.63 18.46
Profit (Loss) from Joint Venture 31.79 19.53 62.81 Profit (Loss) from Joint Venture 10.96 8.78 24.90 Financial Indicator 2013 2014 2015 2016 2017 Profit before tax 93.44 65.09 43.56 Profit before tax 4.50 22.08 -79.63
Return on E uity ( ) 33.49 27.41 28.13 16.45 18.93 Net Income 92.39 64.88 42.40 Net Income 4.50 21.46 -79.05
Cash Ratio ( ) 19.00 27.14 24.15 62.18 43.40 Profit Attributable to Parent Profit Attributable to Parent 91.62 64.09 42.95 4.64 21.37 -78.27 Debt to E uity Ratio ( ) 2.90 2.26 2.60 1.46 2.12 Entity Owner Entity Owner
Operating Profit Margin (%) 10.23 11.24 11.12 13.04 10.59 US$ 1 = IDR 13.384 Collection Period (days) 45 57 75 87 69
Earning per Share (IDR/Share) 92.84 104.21 103.31 162.21 134.10
Number of Employees (Persons) 1,809 1,912 2,069 2,187 2,446
Total Total US$ 1 = IDR 13.384 New Contract Order Book in million S in million S
3,413.31 1,093.23 1,955.80 89.81
2,342.74 951.73 1,170.71 79.12
1,469.40 410.07 1,017.64 47.46
1,192.41 367.20 931.20 47.88
941.05 234.58 887.98 42.58
1,324.7 1,317.3 1,884.47 4,0 1.71 3,168.12 2,85 .18 3,0 4.47 3,625.47 6,223.08 7, 67.88 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Profit Attributable to Total Assets Total E uity Net Sales Parent Entity Owner (in million USD) (in million USD) (in million USD) (in million USD)
14 WIKA Corporate Report 2017 WIKA Corporate Report 2017 15 OPERATION Overseas Project In the context of expansion towards the international market, WIKA sets an excellent example on thow premium coherence shall be implemented simultaneously. AREA In stages, WIKA entered a strategic market within a country that provides comparative advantage to other countries, meaning WIKA did not randomly target markets, but selectively entered particular markets.
Serawak, Kingdom Of United Phillipines Timor-Leste Myanmar Algeria Niger Malaysia Saudi Arabia Arab Emirates
Project Distribution Nationwide
WIKA WIKA BETON 1 3 14 18 15 35 2 REALTY Mobile Crushing Concrete Unit Unit Office OWNS Plant Plants Product Factories Apartments Residences Real Estate Buildings OWNS
16 WIKA Corporate Report 2017 WIKA Corporate Report 2017 17 LIGHT RAIL TRANSIT KELAPA GADING – VELODROME Light Rail Transit (LRT) is one of the modern modes of transportation in Indonesia that can be an alternative in breaking down18 congestion. This LRT project stretches for 5.8 km starting from Kelapa Gading to Velodrome, Jakarta. ProjectWIKA Corporate Report 2017 WIKA Corporate Report 2017 19 construction cost USD395.68 million and estimated will be finish in 1Q 2019. BUSINESS BUSINESS LINES PORTFOLIO
Department of Energy Power Plant: and Power Plant • Build Operate Transfer • Build Operate Own Renewable Energy ENERGY INVESTMENT Infra: Water: • Toll Road • Water Treatment Plant INFRA • Seaport & Jetty • Facilities & Transportation Infrastructure & WATER TPPI Republic of Indonesia Public
Department of Building 65,05% 34, 5% Real Estate & Property: REALTY • Landed House & PROPERTY • High-Rise (Apartment,Condotel) • Office Mixed Use • Industrial Estate Property Management PROPERTY DEVELOPMENT
• Department of Civil Work Civil Construction: Building Construction: Steel Construction: • Department of Overseas • Residential • Department of Building INFRASTRUCTURE • Road and Bridge • Erection • Seaport and Jetty • Equipment & BUILDING &Commercial • Dam and Barrage • Airport Installation • Facility CIVIL CONSTRUCTION & HIGH RISE BUILDING
EPC: - Department of Industrial Plan • Oil and Gas Plant - Department of Energy and ENERGY • Petrochemical Plant Power Plant & INDUSTRIAL • Cement Plant PLANT • Power Plant • Mining, Biofuels, Fertiliser EPC &
POWER ENERGY
Precast Concrete Product PRECAST Natural Resources Management CONCRETE
Granular Asphalt INDUSTRY Extraction Asphalt BITUMEN
Steel Fabrication I W Aluminium Casting o Roa CONSTRUCTION Plastic Injection INDUSTRY PT AIR MINUM INDONESIA TPPI