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 .

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 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 for the Packages Equity, at The Asset Indonesia, representative opened by President Joko Shirdo, a Trading Company and 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, . 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, , 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 Euity 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 Euity () 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 Euity 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 4,01.71 3,168.12 2,85.18 3,04.47 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 Euity 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 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

Operation & Maintenance: CONSTRUCTION ENGINEERING • Power Plant • Industrial Equipment ea ort Raa OPERATING & MAINTENANCE

Civil Construction Transit Oriented Development (TOD) : • Land Procurement TOD are KCIC Station Design • Detail Master Plan • Development etet oate • Selling & Marketing HIGH SPEED • Property Management o 10 ee ro 0 RAILWAY o 0 ee ro 0

20 WIKA Corporate Report 2017 WIKA Corporate Report 2017 21 AUTOMATED PEOPLE MOVER SYSTEM (APMS) - SOEKARNO HATTA INTERNATIONAL AIRPORT Automated People Mover System (APMS) or Skytrain at Soekarno-Hatta International Airport is an unmanned train that 22 WIKA Corporate Report 2017 WIKA Corporate Report 2017 23 operates on a single track and will connect terminal 3 to terminal 2 and vice versa in the initial stage. Total project construction cost USD66.50 million, finished in 2 years. MILESTONE 2016

2008 • WIKA is working on 1982 infrastructure projects 1960 WIKA established Subsidiary in accordance with the WIKA formed several new 2000 of PT Wijaya Karya Gedung 2010 2012 accelerated national Pursuant to Government divisions, namely the that specializes in the strategic projects program, RegulationNo.1960/2 and Construction Civil Division, The establishment of PT construction of high-rise WIKA has defined a new During 2012, WIKA has 2014 such as Trans and Minister’s Decree of Public Buildings Division, Housing Wijaya Karya Realty as a building. vision, namely the Vision successfully completed its Kalimantan toll roads and Works and Electric Power Facilities Division, Concrete progression of the Realty 2020; to become one of the power plant projects with total WIKA is getting more and the Jakarta LRT. (PUTL) Decree No. 5 dated and Metal Products Division, Division. Subsequently PT WIKA acquired 70.08 % shares best integrated EPC and powers consist as follows: more established being a • WIKA Group has established 11 March 1960, WIKA was Industrial Construction Wijaya Karya Intrade was of PT Catur Insan Pertiwi Investment Company in • Turbine Gas Power Plant player of the sector of power a subsidiary engaged in the established with the name Division, Energy Division, and also established as the that specializes in the field of Southeast Asia. The vision is Borang, 60 MW; plant as well as oil and gas toll roads, property, and of “Perusahaan Negara Trading Division. The projects progression of the Industrial Mechanical Electrical. In 2015, believed to be able to provide • Engine Gas Power Plant through projects it won. precast building. Bangunan Widjaja Karja”. that were handled at that time and Commercial Division and PT Catur Insan Pertiwi was directions to every WIKA’s Rengat Ambon, 21 MW; With a number of projects • WIKA acquires PMN and WIKA’s business activities at consist of: LIPI Building, and In 2015, was renamed to PT renamed into PT Wijaya Karya line of business to achieve • Diesel Engine Power Plant abroad, WIKA’ action is executes a Rights Issue the time were electrical and Building, and also Irrigation Wijaya Karya Industri dan Rekayasa Konstruksi. optimum, healthy and Ambon, 34 MW. increasingly recognized in the with total funds obtained of water pipe installation works. Project. Konstruksi. sustainable growth. international level. Rp6.1 trillion.

1972 1997 2007 2009 2011 2013 2015 2017 • Establishment of Subsidiary Perusahaan Negara WIKA founded its first WIKA released its (Initial Public Along with PT Jasa Sarana and • Implementation of the • Earned an Award of 2013 WIKA is on large scale PT Wijaya Karya Serang Bangunan Widjaja Karja was Subsidiary company, namely Offering/IPO) on October PT RMI, established PT Wijaya Commercial Operation Asia Pacific from Aon Hewitt infrastructure projects which Panimbang changed into “PT Wijaya PT Wijaya Karya Beton. 2007 ,29 at the Indonesia Karya Jabar Power specializes Date (COD) for the Diesel • WIKA acquired %100 of were not only challenging but • Adoption of new Corporate Karya”. WIKA then developed Stock Exchange (known at in the development of Power Plant of Marine Fuel PT Sarana Karya (Persero) risking the nation’s reputation, Value - Agility, Caring, into a construction contractor the time as the Jakarta Stock Geothermal Power Station Oil (MFO) 50 MW project shares, which are that is Mass Excellence (ACE) by handling various important Exchange). WIKA released 35 (PLTP). in as an investment 5,000 shares o w n e d (MRT) Projects Route of Kota- • PT Wijaya Karya Bangunan projects such as the % of its shares to the public, project of WIKA in energy by the Government of the Lebak Bulus in Jakarta and Gedung Tbk. has official IPO installation of electricity grids so that the Government WIKA along with other sector. Republic of Indonesia with High Speed Railway of Jakarta at Bursa Efek Indonesia at Asahan and the irrigation of the Republic Indonesia companies have succeeded • WIKA-PU inaugurated a total value of Rp50 billion. – Bandung • Acquiring several major project of Jatiluhur. held 65 % while the rest was in constructing the Suramadu section IA Surabaya – • Signing Working Contract project contracts, such as owned by the public including Bridge, a prestigious project Mojokerto Tollway of MRT’s project as the Serang Panimbang Toll WIKA employees (after ESA, that connects Java and • WIKA received 1.000.000 breakthrough of mass Road for Rp5.33 trillion, ESOP and MSOP). Madura islands. hours works without trasnportation officially accident (zero accident) started Kunciran Cengkareng Toll award from PT Pertamina • WIKA leads the Expansion Road for Rp1.98 trillion and on DPPU Kualanamu and Development Lodgement Development in project in Medan Consortium of Terminal 3 Algeria for Rp1.35 trillion. Soekarno Hatta Airport • Being launched on WIKA’s 53rd anniversary, Wikasatrian officially applied in thetraining of batch 1 on April 2013 ,11-8 in Gadog, Bogor.

24 WIKA Corporate Report 2017 WIKA Corporate Report 2017 25 VISION AND MISSION

The Vision and Mission has been approved and signed by the Board of Commissioners and Board of Directors as stated in the Minutes of the Board of Commissioners and Board of Directors Joint Meeting Number : 02/RISKOMDIR/ WIKA/2010 dated February 26, 2010. VISION “TO BE ONE OF THE BEST INTEGRATED ENGINEERING, PROCUREMENT AND CONSTRUCTION (EPC) AND INVESTMENT COMPANY IN SOUTHEAST ASIA”

WIKA has diversified business lines, with a fixed focus on business related to WIKA’s core business through a vertical integration strategy (backward & forward integration), in order to provide total business solutions. MISSION Providing excellent and integrated products and Strategic overseas expansion. services in EPC and investment for infrastructure, building, energy, industrial plant, industry and Implementing ‘Best Practice’ integrated property. management system.

Satisfying the expectation of key stakeholders.

Implementing business ethics to promote sustainability of Good Corporate Governance.

Number of Employees 2.446 2.187 2017 2016 TAMANSARI LA GRANDE Tamansari La Grande is a High Rise Building project developed by PT Wika Realty which consists of Apartment unit www.wika.co.id26 WIKA Corporate Report 2017 WIKA Corporate Report 2017 27 and Condotel. CORE VALUES CORPORATE AND STRATEGY VALUES

In 2017, WIKA changed its corporate values from In the effort to carry out the mission that has been set the Company follows the following formula: Commitement, Innovations, Balance, Excellence, Relationship, Teamwork, Integrity (CIBERTI) to Agility, Caring, Excellence (ACE). This change was confirmed through Decree number SK.01.01/A.DIR.12240/2017 INTEGRATED BEST PRACTICE dated 01 August 2017 concerning PT Wijaya Karya The Company has the ability to WIKA applies reliable management (Persero) Tbk. Corporate Culture Formulation. provide total solutions, operation systems that have been tested and to maintenance including financing approved, including ISO 9001 & In WIKA’s human capital management, the corporate through WIKA Group synergies. 14001 for quality and environmental values have significance in achieving the Vision and AGILITY CARING EXCELLENCE control systems, and OHSAS. 18001 Mission of the Company. WIKA’s ACE values must be for occupational healthy and safety well understood and become a guide for all WIKA’s systems. EXCELLENT PRODUCT people. WIKA provides assurance that the products delivered to the customers have met the agreed performance STRATEGIC and requirements. OVERSEAS EXPANSION

The development of the overseas KEY market has been conducted in stages, STAKEHOLDERS starting with a strategic market that provided a competitive advantage The Company concern for compared to other countries. Stakeholders incudes Customers, Shareholders, Employees, and Partners. INTEGRATED MANAGEMENT BUSINESS SYSTEM ETHICS WIKA applies management WIKA applies appropriate business systems consisting of Safety and ethics and normsof good corporate Health Management System, Risk governance principles, which Management System, Quality include fairness, transparency and Management System, Security accountability. Management System and integrated Environmental Management System

28 WIKA Corporate Report 2017 WIKA Corporate Report 2017 29 HUMAN

CAPITAL HUMAN CAPITAL C DEVELOPMENT RR WSD WIKA Senior 05 Management To prepare employees for the development program, Development Program WSD the Company observes the employees’ career WD development through coaching results from work 04 WIKA Middle Management assessments and competency evaluations, and these WD Development Program drive the training needs in accordance with actual WD operational conditions. 03 WIKA Junior WD Management Development Program In addition, the Company determines the development WD program composition of hard, soft and managerial 02 WIKA Emerging competency corresponding with applicable job title WD Leadership Development Program position. For staff level, hard competency portion is 01 WD larger than soft and managerial competency. The WIKA Officer higher the structural position and expertise, the lower Development WD Program the hard competency composition compared to soft and managerial competency. WIKA 5 CLUSTER POSITIONS

WIKA DEVELOPMENT PROCES WIKASATRIAN LEADERSHIP CENTER Wikasatrian was established on March 11th 2013, coincide with the 53rd Anniversary of Wijaya Karya. It becomes a center of modern leadership development which characterized by Indonesian wisdom.

The selection process follows several stages aimed at In the Management of Employee Talents, WIKA’ talent obtaining candidates that comply with WIKA culture. development paths are: After the selection process, candidates are included in the Human Capital management is in accordance with WIKA’s Employee Training Program (PPCP), which aims to inculcate WIKA CONDUCTED Talent Identification: WIKA’s identification Human Capital business processes starting from the WIKA’s human character and WIKA’s values of Agility, Caring, process on all WIKA staff performance and AN ORGANIZATIONAL organizational development strategic plan to employee and Excellence (ACE). competency. This can be seen in WIKA’s Talent retirement.Human capital fulfillment is processed through RESTRUCTURING Box. new employee recruitment, either fresh graduates or WIKA has 5 catagerozed/cluster positions that are Senior IN 2016 BY experienced personnel. The recruitment is carried out through Manager, Middle Manager, Junior Manager, Supervisor, and Talent Development: WIKA’s systematic and ESTABLISHING AN partnerships with universities in Indonesia (University Career Staff. WIKA prepares a “dik-duk” method, meaning employees Centre), advertisements, job fairs, general job applications, are educated first before occupying their position. This continuous development process for employees INVESTMENT DIVISION and cooperation with recruitment agencies. In addition, method is expected to more prepare employees for the task who are included in the Talenta program. AS PART OF THE recruitment is also undertaken through a foundation before rotation and promotion. program for students with outstanding achievements who At the Middle Manager level, WIKA not only prepares the COMPANY’S CORE will be offered working opportunities at WIKA. domestic program, but also the overseas program, as a benchmark for knowledge and skills. BUSINESS.

30 WIKA Corporate Report 2017 WIKA Corporate Report 2017 31 MADYA STADIUM An international multi-functional Stadium with a capacity of 10,000 people to support the 2018 ASIAN Games event. It is32 included in renovation package for Softball and Baseball Court and Basketball Hall. The renovation package isWIKA Corporate Report 2017 WIKA Corporate Report 2017 33 USD14.10 million, finished in 1 year. IMPLEMENTATION OF SUSTAINABLE In principle, GCG in WIKA has been well implemented by the Board of Commissioners, Board of Directors, and all human capital in each GOOD activity, with the aim of protecting the interests of the Company, shareholders and stakeholders.

CORPORATE THE GCG IMPLEMENTATION GOVERNANCE STANDARDS INCLUDE: 1. Commitment Aspects for the Implementation of Sustainable Good Corporate Governance. 2. Shareholders and GMS / Capital Owners Aspects. 3. Board of Commissioners / Board of Supervisors Aspects. 4. Board of Directors Aspects. 5. Information Disclosure and Transparency Aspects. 6. Other aspects which among others include sustainability reporting and the Company’s ability against benchmarks in its field.

DETERMINATION OF QUALITY STANDARDS FOR IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE

GCG implementation standards are needed as a The GCG implementation standards in the Company in baselinein order to realize the Vision and execute the particular refer to the Minister of State-Owned Enterprises Company’s Mission. The baseline covers the criteria Regulation No. PER-09/MBU/2012 dated July 6, 2012 to be achieved from various aspects related to GCG concerning the Implementation of Good Corporate implementation. Governance in State-Owned Enterprises, and the Ministry Implementation standards are also intended to of State-Owned Enterprises Secretariat Decree No. encourage the Company to improve the quality of its SK- 16/S.MBU/2012 dated June 6, 2012 concerning the THE IMPLEMENTATION OF GOOD CORPORATE GCG. These standards are formulated based on relevant Indicators / Parameters for Assessment and Evaluation of GOVERNANCE GIVES A POSITIVE IMPACT regulations, input from stakeholders, assessment results Good Corporate Governance Implementation in SOEs. TO BOTH INTERNAL AND EXTERNAL and benchmarking. ENVIRONMENT IN THE COMPANY

34 WIKA Corporate Report 2017 WIKA Corporate Report 2017 35 THE MATINDOK GAS DEVEOPMENT PROJECT (MGDP) The Matindok Gas Development Project (MGDP) is an oil and gas EPC (Engineering, Procurement, Construction) project up to Commissioning and Start-Up by PT Wijaya Karya (Persero) Tbk. The project is located in Batui, Banggai, Central Corporate Report 2017 Corporate Report 2017 Sulawesi36 Province. The Matindok Central Processing Plant’s gas production capacity is 65 MMSCFD, with a condensateWIKA WIKA 37 content of approximately 850 BOPD, with water being produced at approximately 2500 BWPD. INTEGRATED HOLISTIC APPROACH IN Corporate social responsibility management is performed by then Corporate Social Responsibility Function (PKBL), which is under the Corporate Relations Bureau and supervised by the Corporate CORPORATE SOCIAL Secretariat. The duties and responsibilities include:

1. Developing the corporate social RESPONSIBILITY responsibility performance following the concept of sustainability with consideration of cost efficiency and Holistic Integrated Approach program effectiveness, responding to IMPLEMENTATION global issues and minimizing corporate Community risk; Inolement 2. Establishing the partnership and eelopment community development programs as Te uman one of the company’s communication Enironment Rit WIKA is a State-Owned Enterprise (SOE/BUMN) CORPORATE strategies. engaged in construction services, therefore the Oraniational Company fully understands the importance of maintaining, improving and ensuring the SOCIAL In this context, WIKA using ISO 26000 as a guidance: Consumer abor satisfaction of its customers by always improving Guidance Standard on Social Responsibility. In ISO 26000, Isues Practice the quality of service continuously. RESPONSIBILITY air CSR covers 7 (seven) main issues: Operatin The Company is committed to contributing to the MANAGEMENT Practicin surrounding communities and as a realization of 1. Organizational Governance social responsibility to the environment in line with the STRUCTURE Interdepencence Government program that promotes Corporate Social 2. Human Rights Source: ISO 26000: 2010 Guidance of Social Responsibility Responsibility (CSR) programs for each company. 3. Employment

4. Environment WIKA realizes that the implementation of CorporateSocial Inestor Responsibility (CSR) is a moral responsibility to the Relations Bureau Corporate 5. Fair Institutional Activity Practices stakeholders . The Company is committed that with Social or without the rule of law, the Company always Responsibility 6. Consumer Issues, and PB upholds morality. Thus, the parameter of success is to Corporate 7. Involvement and Community Development Corporate Relations promotemoral and ethical principles, that is, to achieve Secretary Bureau the best results without harming other community ood groups. The Company embraces the principle that it Corporate oernance teaches that one party treats the other as much as they Corporate Affairs would like to be treated. As such, the Company believes Bureau that the Company which works by prioritizing moral and ethical principles will provide the best benefits for the eneral Affairs community. Public Relations

38 WIKA Corporate Report 2017 WIKA Corporate Report 2017 39 CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES

Indonesia State Owned Enterprises for The Nation

WIKA Teaches WIKA Scholarship

As part of WIKA’s interest in the development of education in WIKA believes in the value of education and the opportunities it can Indonesia, the company organized the “WIKA Mengajar” (or WIKA offer to the country’s youth. To promote the importance of education, Teaches) activity in 58 junior high schools simultaneously across the the company frequently awards scholarships to students with country on February 28, 2018. outstanding academic achievements.

State of junior high school 4 Pamulihan Sumedang, February 2018 WIKA Tower, September 2017

Foster Village Blood Donation

In honor and celebration of Indonesia’s independence day on August WIKA, together with student representatives from Central Sulawesi, 17, all the State Owned Enterprises (SOE) organized a day of programs exchanged with Pelindo and their student representatives from filled with engaging activities such as a walking event, local product Bangka Belitung. Participating students were asked to stay with host exhibition, and an eight-day exchange program which gives students families to learn about each other, their values, and the characteristics from various regions the opportunity to visit a different province and of each region. They were also expected to gain an understanding of engage in cross-learning. several other areas of the host region, such as the education system, culture, entrepreneurship skill and tourism. The SOE-sponsored student exchange activity called “Siswa Mengenal As part of the program, students had the chance to visit a defense Nusantara” saw the selection of 34 participants across Indonesia. monument on a hillside and a school for special students, learn One of WIKA’s CSR activities that emphasize community development WIKA is involved in strategic corporate giving programs. One of the Those who were selected are second-year students from vocational freshwater fish farming and the cultivation and weaving of local is “Desa Binaan” (or Foster Village), an event held in Pamijahan, Bogor. many charitable events the company hosts and organizes is the blood and public high schools. textiles, observe a series of customary events, and watch an inspiring The highlight of the event was the planting of a sengon tree (a type of program of talented deaf students speaking. donation which occurs every three months. tree native to the tropics) and a discussion on the economic benefits Sulawesi, August 2018 it brings. Meanwhile, WIKA is working to develop and leverage the WIKA Tower, March 2018 skills and expertise of farmers through derivative programs such as beef cattle and ram fattening in tandem with the growth of the tree.

Pamijahan, Bogor

40 WIKA Corporate Report 2017 WIKA Corporate Report 2017 41 AWARDS

1 2 3 4 5 6 7 8

Award Name Award Name Award Name Award Name Award Name Award Name Award Name Award Name Pembagian Kacamata Plus Analyst Issuer Choice Appreciation of HC Management The Most Popular Company SOE with Very Good Financial RankED 6, SOE Enterprises Reaching a score of 687.5 Top 50 of The Biggest Market dengan Jumlah Terbanyak Improvement category Construction Performance Practices category Capitalization Event Event Public Listed Companies Event Program Yuk Nabung Saham Event Event Event Event SOE Performance Excellence CSR Day HUT WIKA Indonesia Human Capital Study Warta Ekonomi Indonesia Infobank 8th BUMN Awards 2017 Indonesia Good Corporate Award 2017 Event Organizer 2017 Corporate Award 2017 Governance Award III 2017 The 9th IICD Corporate Organizer Organizer Organizer CSA Institute Governance Conference and Organizer Organizer Infobank Organizer Forum Ekselen BUMN Award Museum Rekor Dunia-Indonesia Date Economic Review Date Date Dunamis Organization Services Warta Ekonomi October 12, 2017 Date November 6, 2017 Organizer Date March 14, 2017 November 2, 2017 March 11, 2017 Date Date Indonesian Institute for September 27, 2017 September 29, 2017 Corporate Directorship (IICD) Date November 27, 2017

10 11 12 13 14 15 16

Award Name Award Name Award Name Award Name Award Name Award Name Award Name Award Name The Best State Own Enterprisers Top 5 GCG Issues in Construction Most Admired CEO 2017 Trusted Company Based Zero Accident 5,014,200 Safe Indonesia Champion for Asean 1,000,000 Manhours without Ecxellent Safety Performance & Top 20 Big Capt Listed Sector on Corporate Governance Work Hours 2017 Category Construction Lost Time Injury 5,000,000 Sfe Manhours Company Event Perception Index (CGPI) Event Indonesia Most Admired CEO Event Event Event Event Event Indonesia Corporate Secretary Event LRT Jakarta Project Award 2017 Award 2017 Tanjung Priok Access Road The 3rd ASEAN Marketing Ciawi-Sukabumi Toll Road The 9th IICD Corporate Good Corporate Governance Summit Project Award 2017 Organizer Governance Conference and Organizer Organizer Organizer Organizer Award Organizer PT Jakarta Propertindo Warta Ekonomi Warta Ekonomi Organizer KAJIMA-WASKITA JOINT Waskita-WIKA KSO dengan PT OPERATION Markplus Inc Trans Jabar Tol Organizer The Indonesian Institute for Date Date Date Corporate Governance (IICG) Indonesian Institute for December 10, 2017 Date Date Date December 5, 2017 Corporate Directorship (IICD) December 5, 2017 Date December 19, 2017 September 7, 2017 September 30, 2017 Date December 19, 2017 November 27, 2017

42 WIKA Corporate Report 2017 WIKA Corporate Report 2017 43 CERTIFICATION

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Type of Certification Type of Certification Type of Certification Type of Certification Type of Certification Type of Certification Type of Certification Type of Certification Audit Certificate Security OHSAS 18001:2007 Occupational OHSAS 18001:2007 Occupational OHSAS 18001:2007 Occupational OHSAS 18001:2007 Occupational Occupational Safety and Health SNI ISO 9001:2015 Quality SNI ISO 9001:2015 Quality Management System Health and Safety Management Health and Safety Management Health and Safety Management Health and Safety Management Management System Management System- Management System- System-Requirements System-Requirements System-Requirements System-Requirements Requirements Requirements Receiver Receiver PT Wijaya Karya (Persero) Tbk. Receiver Receiver Receiver Receiver PT Wijaya Karya (Persero) Tbk. Receiver Receiver PT Wijaya Karya (Persero)Tbk. PT Wijaya Karya (Persero) Tbk. PT Wijaya Karya (Persero) Tbk. PT Wijaya Karya (Persero) Tbk. PT Wijaya Karya (Persero) Tbk. PT Wijaya Karya (Persero) Tbk. Validity Building Business Line Energy Plant Business Lines Oil & Gas and Industrial Plant Infrastructure Business Lines Validity Energy Plant Business Lines Infrastructure Business Lines Business Lines June 19, 2017 - June19, 2017 August 31, 2015 - August 30, 2018 Validity Validity Validity Validity Validity Issued by Validity August 15, 2015 - August 14, 2018 August 15, 2015 - August 14, 2018 August 15, 2015 - August 14, 2018 August 15, 2015 - August 14, 2018 Issued by May 04, 2017 - May 03, 2020 May 04, 2017 - May 03, 2020 Indonesian National Police of the Ministry of Manpower of the Republic of Indonesia Issued by Issued by Issued by Issued by Republic of Indonesia Issued by Issued by Sucofindo Sucofindo Sucofindo Sucofindo Sucofindo Sucofindo

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Type of Certification Type of Certification Type of Certification Type of Certification Type of Certification Type of Certification SNI ISO 9001:2015 Quality SNI ISO 9001:2015 Quality ISO 14001:2015 Environmental ISO 14001:2015 Environmental ISO 14001:2015 Environmental ISO 14001:2015 Environmental Management System- Management System- Management System- Management System- Management System- Management System- Requirements Requirements Requirements with guidance for Requirements with guidance for Requirements with guidance for Requirements with guidance for use use use use Receiver Receiver Receiver PT Wijaya Karya (Persero) Tbk. PT Wijaya Karya (Persero) Tbk. Receiver Receiver Receiver PT Wijaya Karya (Persero) Tbk. Building Business Line Oil & Gas and Industrial Plant PT Wijaya Karya (Persero) Tbk. PT Wijaya Karya (Persero) Tbk. PT Wijaya Karya (Persero) Tbk. Oil & Gas and Industrial Plant Business Lines Building Business Line Energy Plant BusinessLines Infrastructure Business Lines Business Lines Validity May 04, 2017 - May 03, 2020 Validity Validity Validity Validity Validity May 04, 2017 - May 03, 2020 May 04, 2017 - May 03, 2020 May 04, 2017 - May 03, 2020 May 04, 2017 - May 03, 2020 May 04, 2017 - May 03, 2020 Issued by Sucofindo Issued by Issued by Issued by Issued by Issued by Sucofindo Sucofindo Sucofindo Sucofindo Sucofindo

44 WIKA Corporate Report 2017 WIKA Corporate Report 2017 45 BALIKPAPAN – SAMARINDA TOLL ROAD The first toll road in Kalimantan that connects Balikpapan city to Samarinda city, with a total length of 99.2km. It is listed as 46one of National Strategic Project in Presidential Decree (Peraturan Presiden) Republic of Indonesia No. 56 YearWIKA 2018. Corporate Report 2017 WIKA Corporate Report 2017 47 Total project construction cost USD447.16 million and estimated will be finish in 1Q 2019. PT Wijaya Karya

@PTWijayaKarya

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WIJAYA KARYA TV

PT WIJAYA KARYA (Persero) Tbk. Jl. D.I. Panjaitan Kav. 9-10, Jakarta 13340 P. +6221 8067 9200 F. +6221 2289 3830 W. www.wika.co.id E. [email protected]