CORPORATE REPORT 2016
Building Greater Impact and Sharing Growth 2 Building Greater Impact and Sharing Growth PT Wijaya Karya (Persero) Tbk.
Building Greater Impact and Sharing Growth
We make greater impact. Build commitment to contribute to the success of government programs, especially in infrastructure developments, in line with the Company's core business in construction. 4.08
NEW CONTRACT in billion US$ 1.88
GROWTH 2015-2016
117.13% 2015 2016
1.17
NET SALES 1.01 in billion US$
GROWTH 2015-2016
15.04% 2015 2016
0.93
Equity in billion US$
0.40
GROWTH 2015-2016
129.84% 2015 2016
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 3 Building Greater Impact and Sharing Growth 4 PT Wijaya Karya (Persero) Tbk. Merah Putih Bridge Merah Putih Bridge, cable bridge columns constructed by a Consortium led by WIKA. Located in the city of Ambon, Maluku province, Indonesia. This bridge spans Ambon Island Bay, and connects the villages of Rumah Tiga (Poka) in Sirimau District on the north side, and the village of Desa Hative Kecil/Galala on the south side of Ambon Bay. This bridge is the longest bridge in eastern Indonesia, be part of the overall layout of Ambon City and will become an icon for the city of Ambon. Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 5 Building Greater Impact and Sharing Growth 6 PT Wijaya Karya (Persero) Tbk.
Financial Highlights
WIKA and Subsidiaries Consolidated Statement of Financial Position as of December 31, 2016
Description 2012 2013 2014 2015 2016
Financial Position (in million US$) Total Assets 820.24 937.40 1,184.07 1,458.95 2,314.42 Total Liabilities 609.29 697.23 821.11 1,054.21 1,384.18 Total Equity 193.09 219.48 362.96 404.74 930.24 Result of Operations (in million US$) Net Sales 737.21 884.54 927.60 1,013.70 1,166.18 Operating Income 64.75 90.50 104.31 112.68 154.73 Net Income 38.95 46.47 55.36 52.32 85.38 Income Attributable to Parent Entity Owner 35.43 42.42 45.26 46.52 75.31 Income Attributable to Non Controlling Interest 3.52 4.05 10.09 5.80 10.07
Description 2012 2013 2014 2015 2016
Financial indicator Return on Equity (%) 18.35 19.33 15.64 14.29 8.91 Cash Ratio (%) 23.28 27.15 27.14 24.16 63.47 Debt to Equity Ratio (%) 3.16 3.18 2.84 3.24 1.64 Operating Income Margin (%) 8.78 10.23 11.24 11.12 13.27 Collection Period (days) 50 45 57 75 64 Earning per Share (iDr/share) 77.96 92.84 99.06 101.81 158.64 Number of Employees (persons) 1,619 1,809 1,912 2,069 2,187
Assets Liability Equity 930.24 2,314.42 1,384.18
1,054.21 1,458.95 821.11 1,184.07 697.23 362.96 404.74 937.40 609.29 820.24 219.48 193.09
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
CAGR CAGR CAGR 2012-2016 29.61% 2012-2016 22.77% 2012-2016 48.15% in million US$ in million US$ in million US$ Stock Price Movements and Volume Graphic
4.500 120.000.000
4.000 100.000.000 3.500
3.000 80.000.000
2.500 60.000.000 2.000
1.500 40.000.000
1.000 20.000.000 500
0 0
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4
Income Attributable Equity Order Book New Contract Assets Total sales Net sales to Parent Entity Owner
2015 404.74 3,611.43 1,877.18 1,458.95 1,272.39 46.52 1,013.70
2016 930.24 6,198.99 4,075.88 2,314.42 1,487.05 75.31 1,166.18
Growth 129.84% 71.65% 117.13% 58.64% 16.87% 61.88% 15.04%
Net Sales Net Income Earning Per Share 1,166.18 85.38 158.64 1,013.70 927.60 884.54 101.81 55.36 737.21 52.32 46.47 99.06 38.95 92.84 77.96
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 CAGR CAGR CAGR 2012-2016 12.15% 2012-2016 21.68% 2012-2016 19.44% in million US$ in million US$ in Rupiah
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 7 Building Greater Impact and Sharing Growth 8 PT Wijaya Karya (Persero) Tbk.
PROJECTS Progress
Semanggi Flyover AUTOMATED PEOPLE MOVER SYSTEM
Pasalloreng Dam Mass Rapid Transit PROJECTS Progress
DEPO Light Rail Transit Velodrome
Underpass mandai MAKASSAR BANGKINANG BRIDGE
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 9 Building Greater Impact and Sharing Growth 10 PT Wijaya Karya (Persero) Tbk.
Table of Content
06 Financial Highlights 08 Projects Progress 10 Table of Content 14 Company Overview 16 Operational Review Per Business Line 20 Operation Area 24 Message From President Director 26 Vision, Mission, Core Values, And Strategy 30 Wika's Competitiveness 32 Corporate History 36 Business Pillars 37 Business Portfolio 40 Human Capital 44 Good Corporate Governance 50 Risk Mangement 56 Corporate Social Responsibility 66 Awards & Certification 72 Board of Director Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 11 Building Greater Impact and Sharing Growth 12 PT Wijaya Karya (Persero) Tbk. Semanggi Interchange Project Jakarta City icon being constructed by WIKA using precast segmental technology, with the longest curved length being 80M, using a progressive cantilever erection method used for the first time in Indonesia. Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 13 Building Greater Impact and Sharing Growth 14 PT Wijaya Karya (Persero) Tbk.
COMPANY OVERVIEW
PT WIJAYA KARYA (PERSERO) Tbk Indonesia’s Leading Integrated EPC & Investment Company
Head Office WIKA TOWER Jl. D.I. Panjaitan Kav. 10 Jakarta 13340, Indonesia T. +62 21 819 2808 Directors are optimistic to able F. +62 21 819 1235 E. [email protected] to increase better performance www.wika.co.id sustained by experience and participation in various strategic infrastructure projects under the Government of Indonesia’s agenda.
Bintang Perbowo, SE, MM President Director Be a Leader
Starting a business as an electrical fitter that grew into an EPC (Engineering, Procurement, Construction) and Experienced in working any kind of foreign projects Investment Company in many sectors such as power spread around North Africa (Aljazair, Libya), Middle plants, tollroads, ports and bridges, and transportation East (Dubai-UEA, Jeddah-Arab Saudi), South East Asia industries. WIKA has Capable to transform into a (Malaysia, Timor Leste, Myanmar, Brunei Darussalam) business group with various business pillars, to develop and will continue to expand to other countries through subsidiaries, departments or associated companies development design of Project Management Services of which focus to develop certain types of businesses. (PMS). WIKA is capable to execute civil construction with However, it still integrates each other through vertical design and build method. It is executed starting from integration strategy (backward-forward integration). project planning to construction process.
WIKA has a strong leadership and capable to select the Experienced in business realty and property right peoples to realize future business direction. Wika development, both as contractor and developer. grows as a Pioneer in the precast concrete industry's Recently, WIKA is entered in TOD (Transit Oriented first development in the country, marked by precast Development) business, one of the city concrete plant being constructing in regions throughout developer adapted spatial mix and maximizing the the archipelago in the late 1970s. Now continues to use of mass transit, such as Bus Rapid Transit (BRT), grow with 11 concrete plants, 3 quarry, 1 concrete Commuter Line, Mass Rapit Transit (MRT), Light Rail mobile plant with a production capacity of 2.84 million Transit (LRT), Automated People Movers (APM). WIKA ton/year, always producing a variety of precast concrete have Inovation and development of intangible assets; products, including being a pioneer for major projects knowledge management (KMWIKA), Management (railroad pillow tracks, poles, power poles, box girders, System of WIKA (ISO 9001, ISO 14001, ISO 31000, MRT tunnel spans, shunts, etc.). OHSAS 18001, Security System Management) and the integrated Information System of WIKA. WIKA is always the first in the latest technology construction and unit business expansion (Mass Rapid Transit, Oil and Gas, Smelter and Power Plant WIKA 2016 Technology). WIKA is also the First mover in expanding its operation to foreign countries and continuously Global economy in 2016 showed an improvement develops Engineering Procurement and Construction though not yet fully recovered, indicated amongst (EPC), investing and developing infrastructure projects others by the fluctuation of world oil and other several especially for government projects corresponding with commodities prices which indirectly affects the global State and Regional State Budget. economy. WIKA was able to record an excellent financial performance amidst the a full year of pressure in 2016. Several financial indicators that could be stated amongst others the Company's profit and loss performance, financial position performance and key financial ratios.
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 15 Building Greater Impact and Sharing Growth 16 PT Wijaya Karya (Persero) Tbk.
Operational Review Per Business Line
Infrastructure and Building Segment
This segment consists of general civil construction services Graph Net Income from line of business covering facilities and infrastructure such infrastructure and building as roads, bridges, docks, airports, dams, irrigation and building. The infrastructure and building segment provides an excellent result. 25.38
Infrastructure and Building segment was successfully 17.88 obtained US$2,950.90 million of new contract during 2016, up by 107.83% compared to 2015’s achievement of US$1,419.85 million. Meanwhile, its order book in 2016 amounted to US$4,555.22 million, increased by 91.05% from previous year’s order book of US$2,384.28 million.
Table Inftrastructure and Building’s operational performance Infrastructure dan Building 2016 2015 Percentage 2015 in million US$ 2016 New Contract 2,950.90 1,419.85 107.83% Order Book 4,555.22 2,384.28 91.05% GROWTH 2015-2016
Net Sales gained from this segment stood at US$569.99 million in 2016. This realization was up significantly by 20.49% 41.95% from US$473.07 million of net revenue in 2015. in million US$
Table Income & profitability from Infrastructure and building in million US$ Item 2016 2015 Percentage Increasing Net Sales 569.99 473.07 20.49 Cost of Sales (504.66) (428.62) 17.74 Profit (Loss) from JointV enture 19.45 12.75 52.50 Gross Profit 84.78 57.20 48.21 Operating Expense (20.79) (16.61) 25.14 Operating Income 63.99 40.59 57.66 Net Income 25.38 17.88 41.95 Income Attributable to Parent Entity Owner 25.27 17.59 43.65 Operational Review Per Business Line
Energy and industrial plant segment
Energy and industrial plant segment engaged in energy and Graph Net Income of Energy and EPC (Engineering, Procurement & Construction) as well as Industrial Plant operational and power plant maintenance services. This segment also includes investment on electrical sector of which its majority funding is under the Company’s authority. 16.42 16.40 Energy and industrial plant segment was able to book US$557.81 million of new contracts, an increase by 624.59% from 2015’s position of US$76.98 million. Meanwhile, order books in 2016 reached US$913.70 million, surge 29.02% from 2015’s achievement at US$708.19 million.
Table Operational performance of energy and industrial plant Energy and Industrial Plant 2016 2015 Percentage in million US$ 2015 2016 New Contract 557.81 76.98 624.59 Order Book 913.70 708.19 29.02 GROWTH 2015-2016 Net Sales from this segment stood at US$214.02 million in 2016 and 2015’s realization stood at US$265.97 million. 0.14% in million US$
Table Income & Profitability Energy and Industrial Plant in million US$ Item 2016 2015 Percentage Increasing Net Sales 214.02 265.97 (19.54) Cost of Sales (188.62) (230.97) (18.34) Profit (Loss) from JointV enture 8.74 8.71 0.40 Gross Profit 34.14 43.72 (21.90) Operating Expenses (6.06) (4.87) 24.42 Operating Income 28.08 38.85 (27.71) Net Income 16.42 16.40 0.14 Income Attributable to Parent Entity Owner 16.33 16.31 0.12
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 17 Building Greater Impact and Sharing Growth 18 PT Wijaya Karya (Persero) Tbk.
Operational Review Per Business Line
Industry Segment
Industry segment comprised of various businesses such as Graph Net income from Industry precast concrete piles, girders, railway sleepers, construction steel, automotive spare parts, energy conversion products and mining industries. 25.38 Industrial segment is able to book US$318.46 million of new 17.88 contracts in 2016, up by 14.59% compared to 2015’s position standing at US$277.91 million.
Table Industry Operational Performance Industry (in million US$) 2016 2015 Percentage New Contract 318.46 277.91 14.59 Order Book 417.25 343.12 21.60
2015 2016 This segment was able to record US$280.19 million of net sales in 2016. It grew significantly at 27.06% compared to 2015’s achievement at US$220.51 million. GROWTH 2015-2016 77.92% in million US$
Table revenue & profitability of Industry in million US$ Item 2016 2015 Percentage Increasing Net Sales 280.19 220.51 27.06 Cost of Sales (240.60) (194.52) 23.69 Gross Profit 39.59 25.99 52.30 Operating Expense (8.66) (7.83) 10.63 Operating Income 30.93 18.16 70.27 Net Income 17.88 25.38 77.92 Income Attributable to Parent Entity owner 13.32 7.21 84.82 Operational Review Per Business Line
Realty and Property Segment
Realty and property segment comprised of landed housing and Graph Net Income from Realty and high rise building such as aprtment and building management property as well as condotel.
Realty and property segment was able to record US$248.78 22.75 million of new contracts in 2016, up by 142.87% compared to 2015’s profile at US$102.43 million.
Table Realty and Property Operational Performance Industry (in million US$) 2016 2015 Percentage New Contract 248.78 102.43 142.87 Order Book 312.83 175.85 77.90 6.34
This segment was able to record US$152.46 million of net sales in 2016. This realization grew significantly at 42.66% compared 2015 2016 to 2015’s profile of US$106.87 mllion. GROWTH 2015-2016 258.93% in million US$
Table Revenue and Profitability of Realty and Property in million US$ Item 2016 2015 Percentage Increasing Net Sales 152.46 106.87 42.66 Cost of Sales (117.03) (89.17) 31.24 Gross Profit 35.44 17.70 100.18 Operating Expense (3.71) (2.63) 41.05 Operating Income 31.73 15.08 110.49 Net Income 22.75 6.34 258.93 Income Attributable to Parent Entity Owner 20.39 5.41 276.61
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 19 Building Greater Impact and Sharing Growth 20 PT Wijaya Karya (Persero) Tbk.
Operation Areas
LIBYA UNITED ARAB EMIRATES SAUDI ARABIA ALJAZAIR Kuching/Serawak BRUNEI DARUSSALAM TIMOR LESTE MYANMAR
INDUSTRY
INFRASTRUCTURE PROJECTS
ENERGY & INDUSTRIAL PLANT
REALTY & PROPERTY
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 21 Building Greater Impact and Sharing Growth 22 PT Wijaya Karya (Persero) Tbk. Tayan Bridge The second longest bridge in Indonesia after the Suramadu bridge, with a total length of 14 KM. Spanning Sungai Kapuas, Sanggau, Kalimantan Barat, to speed up access between Tayan District and Piasak village. Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 23 Building Greater Impact and Sharing Growth 24 PT Wijaya Karya (Persero) Tbk.
MESSAGE from PRESIDENT DIRECTOR
Bintang Perbowo, SE, MM President Director
Company Overview
PT Wijaya Karya (Persero) Tbk. (WIKA) is Indonesia’s leading integrated EPC & Investment Company, which has been operating for over 50 years. 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). Messege from Director
The infrastructure and buildings have a design that If combined with the joint venture operation sales, is not only modern, but follows the concept of "social the Company’s recorded US$1.49 billion of sales, an impact", where people can feel the benefit from this increase of 16.83% compared to net sales in 2015 infrastructure immediately and the advantages that will amounted to US$1.27 billion. It represented 72.84% improve their welfare and economic growth. To support of the RKAP target 2016 amounted US$2.04 billion. these efforts, WIKA continues to make improvements By achieving these sales, the Company recorded a in Human Resources and technology capabilities. Such significant increase of income attributable to parent efforts have elevated WIKA to be one of the leading entity owner stood at US$75.17 million, an increase companies in the application of technology, especially of 61.88% compared to 2015’s profile amounting to in the construction industry. Eventually, WIKA’s US$46.52 million. Similarly, it represented 134.88% of commitment efforts will shape the Company’s devotion the RKAP target 2016 of US$55.83 million. to the country encouraging it to play an active role in national development. From the financial position, the Company’s asset reached US$2.31 billion, an increase of US$855.47 Therefore, the company’s presence with its various million or 58.64% compared to 2015 amounting to business and production outputs, is expected to play a US$1.46 billion. The realization of these assets reached role in the equitable distribution of economic growth, 129.25% of the RKAP target 2016 amounted US$1.79 in line with the corporate’s performance increase billion. Meanwhile, equity amounted US$930.24 million, and growth. grew 129.84% or US$525.49 million compared to equity in 2015 amounted to US$404.74 million. Equity Throughout 2016, we as the management and all WIKA’s realization reached 192.29% of the RKAP target in 2016 personnel have been working to improve performance standing at US$483.77 million. and achieve the target set forth in the RKAP. Looking at profit and loss perspective, WIKA's performance Looking at financial ratio assessment parameter, cash increased significantly. It could be traced from the ratio was 62.56% in 2016, increasing from last year at Company’s growth of profit loss instrument, net 24.16%. Current Ratio in 2016 was 146.39%, up from income and earnings per share basis. WIKA managed last year amounted to 118.52%. to record net sales (excluding sales of the joint venture operations) amounted US$1.17 billion, an increase of To face the year of 2017, WIKA has set several targets of 15.04% compared to net sales in 2015 amounted to performance achievement with the spirit of optimism. US$1.01 billion or represented 80.83% of the RKAP 2016 We believe that the years ahead is a period that will of US$1.44 billion. provide many opportunities for WIKA to grow.
Bintang Perbowo, SE, MM President Director
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 25 Building Greater Impact and Sharing Growth 26 PT Wijaya Karya (Persero) Tbk.
VISION, MISSION, CORE VALUES, AND STRATEGY Vision “To be one of the best integrated EPC (Engineering, Procurement & Construction) 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 VISION, MISSION, CORE VALUES, AND STRATEGY
In the effort to carry out the mission that has been set the Company follows the following formula:
Integrated • The Company has the ability to provide total solutions, from engineering, procurement, construction, operation MisSion and maintenance including financing through WIKA Group synergies.
• Providing excellent and Excellent Product integrated products and • WIKA provides assurance that the products delivered to the customers have met the agreed performance services in EPC and and requirements. investment for infrastructure, building, energy, industrial Key Stakeholders • The Company concern for Stakeholders incudes plant, industry and property. Customers, Shareholders, Employees, and Partners.
• Satisfying the expectation of Business Ethics key stakeholders. • WIKA applies appropriate business ethics and norms of good corporate governance principles, which include • Implementing business ethics fairness, transparency and accountability. to promote sustainability of Good Corporate Governance. Best Practice • WIKA applies reliable management systems that have • Strategic overseas expansion. been tested and approved, including ISO 9001 & 14001 for quality and environmental control systems, • Implementing ‘Best Practice’ and OHSAS 18001 for occupational healthy and safety systems. integrated management system. Strategic Overseas Expansion • The development of the overseas market has been conducted in stages, starting with a strategic market that provided a competitive advantage compared to other countries.
Integrated Management System • WIKA applies management systems consisting of Safety and Health Management Systems, Risk Management System, Quality Management Systems, Security Management System and integrated Environmental Management System.
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 27 Building Greater Impact and Sharing Growth 28 PT Wijaya Karya (Persero) Tbk.
VISION, MISSION, CORE VALUES, AND STRATEGY
Values
WIKA has implemented Company Core Values known as CIBERTI (Commitment, Innovation, Balance, Excellence,Relationship, Teamwork, Integrity).
In managing WIKA’s Human Capital, corporate values have significance in achieving the Company’s vision and mission. WIKA’s CIBERTI values should be well understood and serve as guidelines for all WIKA staff.
Commitment Innovation Balance Excellence Relationship Teamwork
Act in Find a better Maintain Provide Maintain Sinergy, accordance solution at balance in better results. good cooperation with all times. all aspects. partnerships within and agreement for accross and promises. both parties. work units. STRATEGY
• Marketing strategy “Selective Market” WIKA’s • Procurement is a substantial way to reduce the costs selective market strategy is based on its chosen especially in gaining higher income and efficiency markets. Currently, WIKA’s market consists of oninventory costs. Efficiency Program is carried out both domestic and overseas markets. WIKA's through continuous improvement efforts in each strategy for the domestic market is to select business process, both for costs of goods as well as projects from the Government from APBN, APBD, operational costs. Risk mitigation is conducted as part State Own Enterprise and private companies of risk management that aims to negate or reduce the which have great fund track record. While risks level encountered by the Company. for the overseas market, WIKA focuses on its existing market. • Investment Strategy “The Reinforcement of Forward- Backward Intregration” The investment strategy • FinancIal strategy “Centralized & Self-FinancIng applied conducts added values and competitive WIKA’s financial strategy is focused on the excellence investment. The added values strategy is optimization of its liquidity level. This strategy conducted by making the right investment decisions is achieved through Centralized Financial to give added value to the company especially in Strategy and Self-Financing Project Policies. terms of the return on investment. The competitive These strategies are expected to maintain the excellence strategy is an investment selection strategy company’s liquidity level. to use the company’s synergy to give more added value to the customers compared to its competitors. • Marketing Operational “QSHE, Centralized Procurement, Effiency Program & RIsk MitigatIon. • Human Capital Development Based on Competency and Retirement Human Capital Development Strategy Operational Excellence refers to four strategies, starts with the organization structure that is adjusted as follows: with the company’s development road map and 1. Quality, Safety, Health & Environment, develops the competency of its human capital to 2. Centralized Procurement, support the Company’s growth. The implementation 3. Efficiency Program, and of “more for more” principles are used in applying the 4. Risk Mitigation. retirement policy.
The Company pays attention to Quality, Safety, Health, and Environment in its operation Centralized.
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 29 Building Greater Impact and Sharing Growth 30 PT Wijaya Karya (Persero) Tbk.
Wika's Competitiveness
A value creator that is able to adapt to changing times. Starting a business as an electrical fitter grew into an EPC (Engineering, Procurement, Construction) and Investment Company in many sectors.
Capable to transform into a business group with various business pillars without missing its integration.
Has a strong leadership and capable to select the right peoples to realize future business direction.
Pioneer in the precast concrete industry's first development in the countryand continues to grow with 15 concrete plants with a production capacity of 2.7 million tons / year, with a variety of precast concrete products.
WIKA is always the first in the latest technology construction and unit business expansion (Mass Rapid Transit, Oil and Gas, Smelter and Power Plant Technology).
Experienced in working on different foreign projects spread from North Africa, Middle East to South East Asia and will continue to expand to other countries.
Capable to execute civil construction with design and build method, starting from project planning to construction process.
Experienced in business realty and property development, both as contractor and developer, TOD (Transit Oriented Development) business; one of the city development adapted spatial mix and maximizing the use of mass transit (Bus Rapid Transit (BRT), Commuter Line, Mass Rapit Transit (MRT), Light Rail Transit (LRT), Automated People Movers (APM).
Doing Innovation and development intangible assets; knowledge management (KMWIKA), Management System of WIKA (ISO 9001, ISO 14001, ISO 31000, OHSAS 18001, Security System Management) and the integrated Information System of WIKA. Jatigede Dam Sumedang, West Java Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 31 Building Greater Impact and Sharing Growth 32 PT Wijaya Karya (Persero) Tbk.
Corporate History
1960 Perusahaan Negara Bangunan Widjaja Pursuant to Government Regulation No.1960/2 Karja was changed into “PT Wijaya Karya”. and Minister’s Decree of Public Works and WIKA then developed into a construction Electric Power (PUTL) Decree No. 5 dated 11 contractor by handling various important March 1960, WIKA was established with the 1972 projects such as the installation of name of “Perusahaan Negara Bangunan Widjaja electricity grids at Asahan and the Karja”. WIKA’s business activities at the time were irrigation project of Jatiluhur. electrical and water pipe installation works.
WIKA founded its first Subsidiary WIKA formed several new divisions, namely the 1997 company, namely PT Wijaya Karya Beton. Construction Civil Division, Buildings Division, 1982 Housing Facilities Division, Concrete and Metal Products Division, Industrial Construction Division, Energy Division, and Trading Division. The projects that were handled at that time consist of: LIPI Building, and Building, and also Irrigation Project. 2000 The establishment of PT Wijaya Karya Realty as a progression of the Realty Division. Subsequently PT Wijaya Karya Intrade was also established as the progression of the Industrial and Commercial Division and In 2015, was renamed to PT Wijaya WIKA released its (Initial Public Offering/IPO) Karya Industri dan Konstruksi. on October 2007 ,29 at the Indonesia Stock Exchange (known at the time as the Jakarta Stock Exchange). WIKA released 35 % of its shares to the public, so that the Government of the Republic Indonesia held 65 % while the rest was owned by the public including WIKA 2007 employees (after ESA, ESOP and MSOP).
2008 WIKA established Subsidiary of PT Wijaya Karya Gedung that specializes in the construction of high-rise building. Along with PT Jasa Sarana and PT RMI, established PT Wijaya Karya Jabar Power WIKA acquired 70.08 % shares of PT Catur specializes in the development of Geothermal Insan Pertiwi that specializes in the field of Power Station (PLTP). Mechanical Electrical. In 2015, PT Catur Insan Pertiwi was renamed into PT Wijaya Karya 2009 WIKA along with other companies have Rekayasa Konstruksi. succeeded in constructing the Suramadu Bridge, a prestigious project that connects Java and Madura islands. Corporate History
2016 • WIKA is working on infrastructure projects in accordance with the accelerated national strategic projects program, such WIKA is on large scale infrastructure projects which as Trans Sumatra and Kalimantan toll roads were not only challenging but risking the nation’s and the Jakarta LRT. reputation, that is Mass Rapid Transit (MRT) Projects • WIKA Group has established a subsidiary Route of Kota-Lebak Bulus in Jakarta and High Speed engaged in the toll roads, property, and Railway of Jakarta – Bandung. precast building. • WIKA acquires PMN and executes a Rights Issue with total funds obtained of Rp6.1 2015 trillion.
2014 WIKA is getting more and more established being a • Earned an Award of 2013 Asia Pacific from Aon Hewitt. player of the sector of power • WIKA acquired %100 of PT Sarana Karya (Persero) shares, plant as well as oil and gas which are 5,000 shares owned by the Government of the through projects it won. Republic of Indonesia with a total value of Rp50 billion. With a number of projects • Signing Working Contract of MRT's project as breakthrough abroad, WIKA’ action is of mass trasnportation officially started. increasingly recognized in the • PT Wijaya Karya (Persero) Tbk. (WIKA) officially handed over. international level. • the Steam Powerplant (PLTU) 2 in North Sulawesi (2x25 MW) 2013 or PLTU Amurang to PT PLN (Persero) at Tawaang village, Kecamatan Tenga, South Minahasa, North Sulawesi. • WIKA leads the Expansion and Development Consortium of Terminal 3 Soekarno Hatta Airport. • Being launched on WIKA’s 53rd anniversary, Wikasatrian officially applied in the training of batch 1 on April ,11-8 During 2012, WIKA has successfully 2013 in Gadog, Bogor. completed its power plant projects with • WIKA did Sodetan Kali Ciliwung Project Pacific "Best total powers consist as follows: Employers". 2012 • Turbine Gas Power Plant Borang, 60 MW; • Engine Gas Power Plant Rengat Ambon, 21 MW; • Diesel Engine Power Plant Ambon, 2010 34 MW.
WIKA has defined a new vision, namely the Vision 2020; to become one of the • Implementation of the Commercial best integrated EPC and Investment Operation Date (COD) for the Diesel Company in Southeast Asia. The vision Power Plant of Marine Fuel Oil (MFO) 50 is believed to be able to provide MW project as an investment project of directions to every WIKA’s line of WIKA in energy sector. business to achieve optimum, healthy • WIKA-PU inaugurated section IA and sustainable growth. Surabaya -Mojokerto Tollway. 2011 • WIKA received 1.000.000 hours works without accident (zero accident) award from PT Pertamina on DPPU Kualanamu project in Medan.
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 33 Building Greater Impact and Sharing Growth 34 PT Wijaya Karya (Persero) Tbk. Tanjung Priok LPG Terminal
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 35 Building Greater Impact and Sharing Growth 36 PT Wijaya Karya (Persero) Tbk.
Business Pillars
INDUSTRY DEPARTMENT, SUBSIDIARIES, SERVICES/PRODUCT ASSOCIATES Precast Concrete : Industrial Facilities : Bitumen : -- Precast Concrete -- Steel Fabrication -- Granular Asphalt Product -- Aluminium -- Extraction -- Natural Resources Casting Asphalt Management -- Plastic Injection
INFRASTRUCTURE DEPARTMENT, SUBSIDIARIES, & BUILDING SERVICES/PRODUCT ASSOCIATES
Civil Construction : Building Construction : Steel Construction : Civil Work Department Overseas Department -- Road and Bridge -- Residential & -- Erection Building Department -- Seaport, Jetty Commercial -- Equipment -- Dam & Barrage -- Airport Installation -- Facility
ENERGY & DEPARTMENT, SUBSIDIARIES, INDUSTRIAL PLANT SERVICES/PRODUCT ASSOCIATES
EPC : Operation & Maintenance : Industrial Plant Department -- Oil and Gas Plant -- Power Plant Energy & Power Department -- Petrochemical Plant -- Industrial Equipment -- Cement Plant, Power Plant -- Mining, Biofuels, Fertiliser
REALTY & PROPERTY DEPARTMENT, SUBSIDIARIES, SERVICES/PRODUCT ASSOCIATES Realty & Property : -- Landed House -- High-rise (Apartment, Condotel, Office Mixed Use) -- Industrial Estate
INVESTMENT DEPARTMENT, SUBSIDIARIES, SERVICES/PRODUCT ASSOCIATES Energy & Power Department Energy -- Water Environment -- Transportation Infrastructure Business Portfolio
Republic Indonesia Public 65,05% 34,95%
60% 90.04% 99% 89.61% 96.05% 96.05% 80%
49% 51%
51.00% 51%
60.00% 33% 34%
99.50% 35% 50%
Energy Energy Renewable Energy Water & Environment
20% 0.14% 40% 14%
TRANSPORTATION INFRA
Toll Road
20% 2.1% Entitas Anak Subsidiaries 0.40% Kepemilikan Minoritas 15% Investment in Associates 25% 20%
Sea Port Railway
15% 38% 60%
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 37 Building Greater Impact and Sharing Growth 38 PT Wijaya Karya (Persero) Tbk. Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 39 Building Greater Impact and Sharing Growth 40 PT Wijaya Karya (Persero) Tbk.
Human Capital
The management of Human Capital or personnel is in accordance with WIKA’s Human Capital business process that is commenced from the strategic plan of organizational development to employee retirement.
GRAND DESIGN & HUMAN CAPITAL DEVELOPMENT SYSTEM
External Environment: 1. Competitor HCIS 2. Government Regulation 3. Technology 4. Market Trend
5. Economic Situation Employee RKAP HCIS Relation & 6. Stakeholder Retirement
HC Strategic Planning & Organization Dignity Bureau SPEED Development
Performance & Leadership Renumeration
Placement Bureau
Recruitment & Business RJP Strategy Culture PEOPLE COMPETENCY
Talent Bureau Recruitment, Engagement Selection & Placement Company's CARE Performance
Talent PPKKW Succession &
Career DevelopmentBureau Internal Environment: 1. Organization Values & HCIS Culture (CIBERTI) Development 2. Organization Structure Learning 3. Capacity and Capability of human capital HCIS
Recruitment & Placement Bureau Development Bureau PPKKW Talent Bureau Dignity Bureau
•• HC Strategic Planning •• TNA & Develpoment •• Wikapratama •• Talent Development •• Performance and & Organization Plan •• Wikasatrian •• Successor & Carrier Remuneration Development •• Training and Plan •• Employee Relation & •• Recruitment, Selection Development Recruitment & Placement leadership, Managerial, •• Wellberg Technical, Seminar, Workshop) •• Learning & Development Human Capital
Human Capital Development
TOP To prepare employee development programme, EXECUTIVE the Company observes the employees’ career DEVELOPMENT PROGRAM development through coaching result for work assessment and competency evaluation driving training needs in accordance with actual operational condition. In addition, the Company determines the development programme composition of hard, soft and WSMDP managerial competency corresponding with WMMDP applicable job title position. For staff level, hard WJMDP competency portion is bigger than soft and WELDP managerial competency. The higher structural WODP position and expertise, the smaller hard competency composition compared to soft and managerial competency.
WIKA Development Process
The formulated development is one of structural/expertise position that oblige every employee to fulfill the assigned development program which is in line with structural/expertise position. All employees have an equal opportunity to pursue training development that is adjustable with corporate generic and specific need either every employee’s Soft or Hard Competency.
WIKA Development Process
••Project/ Developmental Learn & Develop Learn & Develop 70% Assignment 10% through Structure 20% Through Others Courses & Programs ••Cross Learning
LEARN & DEVELOP THROUGH Workshop COACHING - MENTORING EXPERIENCE
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 41 Building Greater Impact and Sharing Growth 42 PT Wijaya Karya (Persero) Tbk.
PLTG ARUN The largest power plant in Indonesia with a capacity of 184MW, in Lhokseumawe, able to meet the electricity consumption needs for the Aceh and North Sumatra regions. Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 43 Building Greater Impact and Sharing Growth 44 PT Wijaya Karya (Persero) Tbk.
Good Corporate Governance
As a listed State-Owned Enterprise (SOE) which has established its role on the world stage, WIKA is committed to implementing corporate governance principles in the Company’s daily management. All the strategic measures made by the Board of Commissioners and Board of Directors always consider the GCG principles of: Transparency, Accountability, Responsibility, Independency and Fairness in the interest of shareholders and other stakeholders. Dompak Bridge Good Corporate Governance
As a foundation for a reliable company, GCG implementation is carried out carefully, is planned and sustained with the Transparency output to be a highly competitive company. WIKA has adopted the best standards applicable to the ASEAN Corporate Governance Scorecard issued by the ASEAN Capital Market Forum since 2012, as well as Indonesia’s GCG guidelines issued by the Fairness Accountability National Committee on Governance (NCG) in 2006, and the criteria and methodology established by the Office State of Ministry of State-Owned Enterprises No.SK-16/S. GCG MBU/2012 dated June 6, 2012. WIKA managed to enter the top 50 Indonesian issuers in the ASEAN Corporate Governance Scorecard on December 19, 2014 according to the Indonesian Institute of Corporate Directorship (IICD). Independency Responsibility
For the Company and other parties, the roadmap will clarify to interested parties the planned GCG implementation.
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 45 Building Greater Impact and Sharing Growth 46 PT Wijaya Karya (Persero) Tbk.
Good Corporate Governance
WIKA’s GCG roadmap for the period 2015-2018 is as follows:
GCG Managed GCG Governed GCG Sustainability GCG Citizenship
Improvement of Strenghten the Make GCG as culture WIKA as a locomotive of Infrastructure & System implementation GCG implementation mechanism of GCG
2015 2016 2017 2018
GCG ORIENTATION GCG ORIENTATION GCG ORIENTATION GCG ORIENTATION •• Infrastructure Completeness (CoC), •• Internalization of •• GCG Inclusion & •• Corporate Citizenship Board Manual, GCG) GCG in the main •• Deepening •• Business Ethic •• Special Menu of GCG organization •• Internalization of main •• Culture-based GCG Website •• Triple Bottom Line & branch organization •• ASEAN Scorecardte •• ASEAN GCG •• Benchmarkebsite
Profit Profit Profit Profit
People Planet People Planet People Planet People Planet
MAIN DRIVER: MAIN DRIVER: MAIN DRIVER: MAIN DRIVER:
•• Regulatory Driven •• Market Driven •• Stakeholder Driven •• Culture Driven •• Market Driven •• Ethical Driven •• Culture Driven •• Ethical Driven
MAIN INDICATOR: MAIN INDICATOR: MAIN INDICATOR: MAIN INDICATOR:
1. Main Menu GCG Website 1. Improvement of Content 1. Internal Governance Award 1. Main Menu of GCG Website 2. Sosialization GCG main & GCG - Web 2. Sosialization Gratification 2. Revise Code of CG branch 2. Mechanism Gratification and 3. Developing GCG 3. Revise Code of Conduct 3. Improvement of Structure Whistle Blower- Web 4. Champion 4. Revisi Board Manual of Gratification and Whistle 3. Mechanism of Gratification 5. Revise Subsidiary 5. CSR 26000 blower and Whistle Blower Governance 6. Champion in ARA 4. Subsidiary Governance (GRI) 4. GCG Champion 6. Policy Sustainabiity 7. Score of assesment SK-16/S. 5. Qualification & Competence 5. ICT Governance 7. Top 3 in ARA 8. MBU/2012 of Human Capital 6. Sustainability Reporting (GRI) 8. Score asesment SK-16/S. 9. 31. Score ASEAN Scorecard 6. Score assesment SK-16/S. 7. Improve the Competence of MBU/2012 7. MBU/2012 Human Capital 9. Score ASEAN Scorecard 8. Score ASEAN Scorecard 8. Score asesment SK-16/S. MBU/2012 9. Score ASEAN Scorecard Good Corporate Governance
GCG IMPLEMENTATION IN 2016
As part of its commitment to GCG implementation, during 2016, WIKA carried out the following:
1 Implemented GCG self assessment measurement
2 Participated in the GCG Indonesia Award event: The Best SOE
3 Followed the ASEAN SCORECARD Assessment (Top 50, score 74)
4 Documentation of Board of Directors Dynamic, Board of Directors Meeting and GM and Board of Commissioners Meeting with the Board of Directors.
5 Socialized GCG in the MR Department and through online media
6 Completed WIKA Website material in accordance with ASEAN Scorecard criteria
7 Completed GCG sections in the WIKA Newsletter and WIKAMagz
8 Making Guidelines for Handling Conflict of Interest Update Conflict of Interest and BOC and Directors
9 Data of The Ownership of Company's officers with the company
10 Meeting Coordination with Nomination, Remuneration and GCG Committee
11 Signed a Commitment to CoC Compliance
12 Education and training (Directors and Commissioners) and employees regarding WIKA GCG
13 Participation in the related Due Diligence Regulatory Compliance between the Company
14 Supported the Company’s RKAP and Annual Report Management Risk Assessment, Internal Audit and External, and KPKU
15 Subsidiary Govenance Ratification
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 47 Building Greater Impact and Sharing Growth 48 PT Wijaya Karya (Persero) Tbk.
PLTU Cilacap Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 49 Building Greater Impact and Sharing Growth 50 PT Wijaya Karya (Persero) Tbk.
Risk Mangement
WIKA is aware that risk is an inseparable that have been developed, in this case part of business processes. The risks are the increased uncertainty caused by the inherent in activities and decisionmaking increasing complexity of competition (due and the impact of these risks could to globalization), technological advances, significantly affect the company’s stability. increasing product requirements, exchange movements, increased terrorism / security, A risk management system can increase legal constraints, climate change, government the guaranteed achievement of the Vision, policies, socio-political dynamics, the dynamics Mission, Objectives, Strategies and Target of industrial relations, and others. of the Company. WIKA should anticipate external and internal environments Risk management Roadmap
2005 2010 2013 2015 2009 2012 2014 2017
INTEGRATED RISK INTEGRATED RISK INITATION RISK DEFINED RISK MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT •• Focus on external •• Making Risk •• Having general •• PIC Risk risks through Management procedure and liyyle Management external stakeholder Dictionary Linkage knowledge and formed analysis Executive Summary undersyanding on Risk •• Measure Risk •• Publishing Risk Done by system management Matuarty Level Management Guide automatically •• Risk Management •• Updating Risk •• Linkage Risk •• Provide Key Risk implementation still SLU Management Management at the Indicator in the PPU continuouslly •• Web-based high level PJPU and risk Management Monitoring Risk PPU scorecard dashboard Management •• Measure Risk Maturity •• Implemented Risk Level Management SILO •• Updating Risk PJPU management continuouslly
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 51 Building Greater Impact and Sharing Growth 52 PT Wijaya Karya (Persero) Tbk.
Risk Mangement
Top Risk Profile of Operational Risk
Area Risks Mitigation
Human Resources Control needed centrally; The availability of Human • Coaching from superiors; Human Resources does not Capital • Review competency standards and job requirements; meet Company’s requirement • Attractive, competitive and sustainable dignity; • WIKA Talent Management System (WTMS) Implementation; • Review the grading system
• Developing Know Your Customer guidelines; Incompliance to regulation Legal • Reviewing procedures related to contracts; and claims over contracts • Sharing strategic legal case; • Monitoring Good Corporate Governance implementation
Reviewing policies related to financial sector regulations and taxation; Net Cash Flow below • Maximizing KMK, SKBDN / LC, and SCF as a medium Finance 40% of payments; • Controling PPN Output Documentation and taxation aspects; • Cooperating with tax advisors and withdraw funds according to regulations
• Monitoring server access Management • Escalating Early Warning System System System Application • More detailed SPPI Inconsistency • PTKP implementation for inconsistent PIC • Application of clear and measurable sanctions for any personnel who committed violations
Creating work instructions (IK) and Expediting unoptimal procedures for expediting Procurement material • Conducting due diligence on vendors • Reviewing contracts with third parties • Expediting material application system
Establishing a data bank for linked FS analysis that has been conducted Invalid Feasibility Study Investment • Reviewing the FS for active investments (FS) • Conduct KYC for consultants appointed as FS consultants • Conduct KYP for partners who will be shareholder, Feedstock and Offtaker partners Risk Mangement
WIKA’s Risk Management Program
Key Performance Indicator 2016 Risk Management Plan
1. Clinical and Mentoring Risk Ratio 2. Monitoring of risk reserve’s usage
Risk Maturity Level Assessment risk maturity level by independent consultant
Risk Management Audit 1. Integrated audit with SPI 2. Monitoring continuity planning for the finding of risk management audit
1. Review of risk management procedures 2. Risk Management Forum 3. Certification and training of risk management Risk Program 4. Benchmark 5. Upgrading information on IT basis 6. Risk management report
SCORE RISK MATURITY LEVEL
Maturity Level Risk Assessment 2015 was conducted by BPK on February 15 until March 4, 2016, through several methods, namely self-assessment, interview sampling of five functional departments, and one site visit. GAP 3.79 3.80 3.52 2.56 score maturity level score maturity
2012 2013 2014 2015 period
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 53 Building Greater Impact and Sharing Growth 54 PT Wijaya Karya (Persero) Tbk.
SOE Teaching Program As part of the SOE 2016 present to the State program, WIKA has started an SOE teaching program in Eastern Indonesia at SMK Negeri 1 Oksibil, Pegunungan Bintang, Papua. Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 55 Building Greater Impact and Sharing Growth 56 PT Wijaya Karya (Persero) Tbk.
Corporate Social Responsibility
WIKA has owned CSR blueprint since 2016 referring to ISO26000 guidelines in order to increase CSR performance. With the CSR blueprint, WIKA expects that CSR activities would be more focused and enable it to provide positive contribution either to all stakeholders or the Company. Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY on LIVING ENVIRONMENT
Activity Investment One of WIKA environmental CSR activity, WIKA environmental management costs is at the same time as WIKA’s anniversary US$15.630 in 2016, lower than that in 2015 commemoration day on March 11, 2016, which is US$39.074. The decline was due to was related to National Waste Concern. The WIKA focusing on empowering communities program involved the WIKA Health and WIKA around the sengon land and on the Care programs with the theme WIKA Clean maintenance of the existing trees in 2016. Environment Together with the Society.
The event was attended by the Board of Commissioners, Board of Directors, employees, and local communities, and local governments in the neighborhood of WIKA projects. WIKA also invited small traders from around the Head Office to supply their healthy products to participants.
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 57 Building Greater Impact and Sharing Growth 58 PT Wijaya Karya (Persero) Tbk.
Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY ON EMPLOYEMENT, HEALTH AND SAFETY
EMPLOYMENT
Activity
Industrial Relationships well as the best talent to fill certain positions. WIKA seeks to ensure relationships have mutual In 2016, WIKA carried out an accelerated respect and are capable of creating a balance recruitment program, intended to more quickly between fulfilling rights and obligations, through prepare future cadres because human capital intensive communication and involvement development takes longer time compared to the between WIKA and its employees in achieving growth of existing businesses. company targets. Employee Competency Development Gender Equality and Employment WIKA has a competency development program In principle, WIKA adheres to gender with opportunities open to all employees. discrimination regulaions in terms of human resource management. This is true in the WIKA has a wide range of programs supporting, recruitment and development process until including: WSDMP (WIKA Senior Management the workers’ employment finishes. However, Development Program), WMMDP (WIKA Middle the number of male employees in WIKA is still Management Development Program), WJMDP dominant. By 2016, out of 2,187 employees , (WIKA Junior Management Development 2,087 is male and the rest, 130 is female. Program), WELDP (WIKA Emerging Leadership Development Program) and WODP (WIKA Officer Employee Recruitment and Turnover WIKA follows the principle of equality of Development Program). During 2016, the opportunity in the recruitment process. cost of employee training and development is Therefore, WIKA employee recruitment is US$704.996 or about 0.6% greater than that in open to anyone to find qualified candidates as 2015, which is US$700.689. Corporate Social Responsibility
CSR on OCCUPATIONAL Safety, HEALTH and the Environment (SHE)
Audit SHE Audit is executed specifically for projects categorized as a high danger potential one. An integrated audit conducted together with Management System Bureau to measure SHE system implementation, safety and quality at project site. An auditor is a combination between an auditor Activity An accident report from operational dan head office. WIKA always places Occupational The Company also complied with RTL must be done for any finding Safety and Health and the several programmes to ensure the and the evidence must be submiited Environment (K3L) as a priority. It fulfillment K3 standard in all the maximum 2 week for verification. is aligned with the policy of main Company’s activities amongst others Company business to prevent OHSAS 18001:2015, ISO 14001:2015 SHE award various risks. In this regard, and Safety and Health Management Safety Work Hours Award Award the Company is committed to System (SMK3) to prevent an for safety work hours is awarded suppress work accidents to achieve accident and diseases due to once a year in order to provide zero accidents. working activities. K3 performance award towards WIKA’s projects can be indicated by Frequency Rate which safety work hours reaches at To educate and train workers’ (FR) obtained by number of working 500,000; 1,000,000; 1,500,000 and skills, particularly in awareness accidents divided by man hour per 2,000,000 man hour. of K3 importance, WIKA has a year multiplied by 1 million man Wikapratama Learning Center and hour. SHE Reward a Wikasatrian Leadership Centre. SHE reward was held once a year Wikapratama Learning Center is Scorecard to give awards towards projects used to develop and improve hard Online report is prepared for SHE applying an optimal SHE system. competency for staff level to Section implementation, safety and quality SHE award evaluation is a score Head. While Wikasatrian Leadership can be seen on the WIKA’s corporate combination of SHE Level, 5R, and Center develop soft and managerial scorecard. QSSHE excellence is an SMSL for 1 year year; received competencies from Project average percentage of SHE Level, award during the project is still Manager level to the General 5R, SMSL, dan QMSL’s scores. ongoing; and an innovation of SHE Manager and the subsidiaries’Board implementation at project site. of Directors.
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 59 Building Greater Impact and Sharing Growth 60 PT Wijaya Karya (Persero) Tbk.
Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY ON SOCIAL AND COMMUNITY DEVELOPMENT
As one of the largest state-owned enterprises in the field of EPC, WIKA actively has implemented a Partnership in accordance with the Yag program proposed by the Government. The complete PKBL report can be read on http://www.wika.co.id/id/file partnershipampcommunity-development-report.
Activity In Central Sulawesi, WIKA cooperated with PT Pertamina Activities undertaken in the Partnership and Community EP organizing welder training programs. To show Development Program and other programs outside the seriousness in this program, experienced trainers and Partnership and Community Development Program. welding inspectors from Guna Nusa and Titis Sampurna Inspection were involved. Partnership and Community Development Program WIKA Sector Partnership 2016, in accordance with Other WIKA CSR activities, included: PER-09/6MBU/07/2015. Partnership Program 1. Scholarship program for 178 students, comprising includes: Industrial, Trading, Agriculture, Livestock, 55 elementary school students, 43 junior high school Plantation,Fishery, Services and Others. students, 25 high school students and 55 College students, with a total fund of US$35.591. Community Development Program includes Natural 2. Help for flood victims in Garut, namely in the disasters, Education / Training,Health assistance, form of logistical assistance, blankets, medicines, Facility / Infrastructure Works, Places of worship, mineral water,hygiene equipment, diapers, infant Nature Conservation, Poverty Eradication / Community milk, sanitary napkins, school supplies, tableware, Empowerment, Partner coaching. appliances and cash. 3. Aid for earthquake vict ims in Aceh, namely in Outside PKBL Partnership Program the form of excavators, renovation of toilets and In addition to CSR, WIKA continues to develop mosques, solar powered lights, sarongs and communities in the partner villages in Pamijahan. blankets, food for the soup kitchen, dry food During 2016, there was increase in the number of and drinks. farmers who joined. WIKA’s CSR team in Pamijahan 4. Help facilities and infrastructure for the partner actively created new programs, in addition to sustaining villages in Cibunian, Pamijahan subdistrict, Bogor, in the programs already running. The new program in the form of MCK and WIKA roadwork in Kebon. Pamijahan was called sapi ongole. The program is 5. Construction of places of worship in three (3) already underway, such as a revolving goat farming locations. program that trains farmers in breeding. In addition, 6. Organizing blood donations every three months. farmers are taught to make organic fertilizer, a mixture 7. Distributing basic foods in WIKA operating locations of manure and straw. near the Head Office & WIKA Industrial Zone in Cileungsi,Bogor. Red ginger planting has been carried out since September 2015, in 2016 14 tons were successfully WIKA participated in the SOE PIC program Presents To harvested. Demand for the red ginger is high enough to State located in Lampung Province, in 2016. supply the city of Bogor and export to markets in Oman and Vietnam. Investment The costs associated with the social development programs until the end of 2016 reached US$474.844. Corporate Social Responsibility
Partnership Program Community Development
Industrial Trading Natural disasters Education
Agriculture Livestock Health assistance Facility
Plantation Fishery Places of worship Nature Conservation
Services Others Community Partner coaching Empowerment
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 61 Building Greater Impact and Sharing Growth 62 PT Wijaya Karya (Persero) Tbk.
Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY for the Consumen
Implementation Safety Management System WIKA management system introduction Introduction The implementation of WIKA Management PT Wijaya Karya (Persero)’s safety System is under responsibility of Management management system was relied on the Representative (MR) ex officio General Manager regulation of Indonesia Chief Police No of Development System. This GM which is 24 year 2007 on safety management elected as a management representative is system of organisation, company, and/ reposnsible to steering committee chairman and or government institution/agent. To adjusted to scope of work or problems faced by assign direction and principles of safety head office, department, project and plant. management system implementation Wika’s Quality Management System Introduction activities, WIKA has assigned safety policies stated on PT Wijaya Karya PT Wijaya Karya (Persero)’s quality management (Persero)’s management system policy. system is based on provisions set on ISO This policy is then communicated 9001:2015 comprising of: to all employees and provided to 1. Procedures, working instruction, director related parties. WIKA conducts risk decree letters and/or corporate policies management, development strategies 2. Appointed person in charge (management and mitigate risk in order to manage system development team) threats to WIKA’s assets (intangible asset 3. Reference document or official standard dan tangible asset). IKHTISAR KINERJA LAPORAN MANAJEMEN PROFIL PERUSAHAAN PERFORMANCE HIGHLIGHTS MANAGEMENT REPORTS COMPANY PROFILE
Corporate Social Responsibility
Tanggung Jawab SoSial PeruSahaan TerhadaP KonSuMen CorPoraTe SoCial reSPonSibiliTY To The ConSuMen
WIKA’s Quality and Safety Management Policy PT Wijaya Karya (Persero)’s quality and safety has been fully developed into an integrated Quality and Safety Management System. It was targeted by top management in order to develop employess constinously and generate products corresponding with their scope of works. It is also a supportive means to achieve target of working unit or WIKA’s whole company target as well as to manage safety. Customers of this policy is not expected to be assessed in a narrow sense or only WIKA’s service user. It is expected to see in a broader sense including all interested parties and should be reviewed periodically by top management. Policy Quality Management System and Security PT Wijaya Karya (Persero), Tbk. This is shown in the following figure:
452 Laporan Tahunan 2016 | PT Wijaya Karya (Persero) Tbk.
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 63 Building Greater Impact and Sharing Growth 64 PT Wijaya Karya (Persero) Tbk.
Sambu Island Fuel Terminal Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 65 Building Greater Impact and Sharing Growth 66 PT Wijaya Karya (Persero) Tbk.
Awards & Certification
The first winner of "Best Sustainability Report 2015" category Top 2 Indonesia Best Practices of Corporate University 2016 - infrastructure in Indonesia Sustainability Reporting Award (ISRA) in Category Leadership Learning, SWA Magazine and PLN University, 2016, from the National Center for Sustainability Reporting (NCSR), October 24, 2016. December 14, 2016. 1st Rank Indonesia Best Practices of Corporate University 2016 Top IT & Telco 2016 Digital Transformation The Key to Drive - Category Learning Delivery, from Swa Magazine and PLN Business for category Top Corporate on Digital Transformation University, October 24, 2016. Readiness and Top IT Implementation on Infrastructure Sector, Itech Magazine, November 23, 2016. Best Senior Management Support Investor Relations 2016, 10th Annual Best Financial Award from 2007 to 2016, from Alpha Top 2 Indonesia Best Practices of Corporate University 2016 - Southeast Asia. category Learning Design, SWA Magazine and PLN University, October 24, 2016. Awards & Certification
Strongest Adherence to Corporate Governance, 10th Annual Best Social Business Innovation Company 2016 Kategori : Konstruksi Financial Award 2007-2016, dari Alpha Southeast Asia. dalam 5th Indonesia Social Business Innovation Award 2016, dari Majalah Warta Ekonomi, 25 Agustus 2016. Best Strategic Corporate Social Responsibility, 10th Annual Best Financial Award 2007-2016, dari Alpha Southeast Asia. Best Green CEO 2016, Kategori : Konstruksi, dalam Indonesia.
Most Improved Investor Relations 2016, 10th Annual Best Financial Best Green CEO Award 2016, dari Majalah Warta Ekonomi, 25 Award 2007-2016, dari Alpha Southeast Asia. Agustus 2016.
Best CFO in Indonesia, 10th Annual Best Financial Award 2007- Top 20 Warta Ekonomi Most Admired Companies WIMACO 2016 2016, dari Alpha Southeast Asia. dalam Indonesia Most Admired Companies Award 2016, dari Majalah Swa, 19 Mei 2016.
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 67 Building Greater Impact and Sharing Growth 68 PT Wijaya Karya (Persero) Tbk.
OHSAS 180001 : 2007 SNI ISO 9001:2008 Occupational Health and Safety Management System- Quality Management Systems-Requirements Requirements Oil & Gas Industrial Plant Business Lines. System-Requirements Oil & Gas Industrial Plant Business Lines. OHSAS 180001 : 2007 Occupational Health and Safety Management System- SNI ISO 9001:2008 Requirements Building Business Lines. Quality Management Systems-Requirements Building Business Lines. ISO 140001:2004/SNI 19-14001:2005 Environmental Management Systems-Requirements with SNI ISO 9001:2008 Guidance for use Building Business Lines. Quality Management Systems-Requirements Energy Plant Business Lines. ISO 140001:2004/SNI 19-14001:2005 Konsorsium WIKA – TECHNIP (KWT) Environmental Management Systems-Requirements with Piagam Penghargaan atas Tanjung Priok Access Road Guidance for use Oil & Gas Industrial Plant Business Lines. Construction Project (NS-Direct Package) Departemen Sipil Umum 1 atas pencapaian 2.000.000 Jam Kerja Selamat. OHSAS 180001 : 2007 Occupational Health and Safety Management System- Piagam Penghargaan atas Pembangunan Jalan Layang Requirements Energy Plant Business Lines. Kapten Tendean – Blok M, Cileduk, Paket Seskoal Cileduk Departemen Sipil Umum 1 atas pencapaian 500.000 Jam Recognition Award presented to Konsorsium PT Wijaya Kerja Selamat. Karya – PT Inhwa Indonesia – PT Singgar Mulia for the Achievement of over 8,8MM hours without an injury (since Certificate Award from Republica Democratica De Timor June 11, 2014). Leste – Overseas Department New Development of OE- Cusse Airport Project for the Implementation of Safety, Certificate of Appreciation from PT Pertamina EP Matindok Health and Environment Program, 500.000 Manhours Gas Development Project (MGDP) Central Processing without accident. Plant Matindok, Safe Man Hours without Lose Time Injury.
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 69 Building Greater Impact and Sharing Growth 70 PT Wijaya Karya (Persero) Tbk.
Tunnel Segment Concrete, WIKA KOBE production with 6,05m in diameter and 1.5 m long, to meet all the needs for the underground tunnel construction segment (underground section) for the Jakarta MRT project. Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 71 Building Greater Impact and Sharing Growth 72 PT Wijaya Karya (Persero) Tbk.
Board of DIRECTORS
03 06 04 05
02 01
Ir. Bambang Pramujo, MT Ir. Destiawan Soewardjono, MM 03 01 Bintang Perbowo, SE, MM 02 Director of Operation II President Director Director of Operation III 06 04 A.N.S. Kosasih, SE, MM-FI 05 Ir. Novel Arsyad, MM Ir. Chandra Dwiputra, MM Director of Finance Director of Human Capital and System Development Director of Operation I Bintang Perbowo, SE, MM Ir. Destiawan Soewardjono, MM President Director Director of Operation III
Indonesian citizen, born in Jakarta, Indonesian citizen, born in Surabaya on February 15, 1954 (age 62 years). on 10 April 1961 (age 55 years). He Previously, he served as President has served as Director of Operations Director for the period 2008-201, of PT Wijaya Karya (Persero) Tbk. he was Finance Director of PT since 25 April 2013. He started his Pembangunan Perumahan (Persero) career at PT Wijaya Karya (Persero) from 1999 to 2008 and held other Tbk. in 1988 holding various important positions within the same Operations positions including company. He earned his Masters in Overseas Division General Manager International Management from the (2012-2013), Overseas Division Prasetya Mulya Business School in Manager (2008-2011), and the East- 2007 and a BA in Economics from the West Motorway Project Manager Universitas Krisnadwipayana, Jakarta - Algeria (2009-2010), he earned a in 1990. Currently, he lives in Jakarta. Master of Management from MM Universitas Gadjah Mada, Yogyakarta Bintang Perbowo was appointed in 2008 and a Bachelor's degree in as President Director for the first Civil Engineering from the Universitas time in EGMS, held on May 15, Brawijaya, Malang in 1987. He 2008 and in AGMS financial year completed his Master of Management 2012, held on April 25, 2013, he was from the Universitas Gajah Mada, appointed for the second time as the Yogyakarta in 2008. Currently, he is President Commissioner. domiciled in Jakarta.
At the 2012 Annual General Meeting, held on April 25, 2013, appointed him as a Director of PT Wijaya Karya (Persero) Tbk.
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 73 Building Greater Impact and Sharing Growth 74 PT Wijaya Karya (Persero) Tbk.
Board of DirectorS
Ir. Bambang Pramujo, MT A.N.S. Kosasih, SE, MM-FI Director of Operation II Director of Finance
Indonesian citizen, born in Wonogiri, Central Indonesian citizen, born in Jakarta on July 12, Java, on June 13, 1957 (age 59 years). Currently, 1970 (age 46). He was appointed as a Director on he has served as Director of Operations II of April 28, 2016. He earned his Masters in Finance PT Wijaya Karya (Persero) Tbk. In addition, and Investment from IPMI and a Bachelor he is President Commissioner of PT Wijaya of Economics from the Universitas Gadjah Karya Rekayasa dan Konstruksi since 2013. Mada. Currently, he is appointed as Director of Bambang Pramujo started his career at PT Finance of PT Wijaya Karya (Persero) Tbk. and Wijaya Karya (Persero) Tbk. in 1984 and has as President Comissioner of Subsidiary at PT held several key positions in the Company Wijaya Karya Realty. Previously, he served as and its subsidiaries, including: Commissioner President Director of PT Jakarta Transportation of PT Wijaya Karya Industri Konstruksi and (Transjakarta) during 2014 -2016. He also President Commissioner of PT Wijaya Karya served as Finance Director of Perum Perhutani, Rekayasa dan Konstruksi. He was also General Indonesia's biggest forestry company, during Manager of several business units, including 2008- 2012. He won an award as one of the "Top EPC Department, Energy Department, Utilities 5 Indonesia Best CFO" for three consecutive Department, and Industrial Plant Department years, during 2010, 2011 and 2012 from SWA (2005-2013) . He earned a Master's degree in Business Magazine and Prasetiya Mulya Business Civil Engineering from Universitas Indonesia in School for his contribution on changing Perum 1999, and an engineering degree in Mechanical Perhutani. In 2016, she was voted "Best CFO in Engineering from Universitas Sebelas Maret, Indonesia" by Alpha Southeast Asia, a Business Surakarta, in 1982. Today, he lives in Bekasi. and Finance magazine, for his contribution as Finance Director of PT Wijaya Karya (Persero) At the 2012 Annual General Meeting, held Tbk. As part of its service to the community, on April 25, 2015, he was appointed as a A.N.S. Kosasih also teaching at the Universitas Commissioner of PT Wijaya Karya (Persero) Tbk. Indonesia, Master of Management, Faculty of Economics and Business. Currently, he lives in Jakarta.
Based on General Meeting of Shareholders financial , held on April 28, 2016, he was appointed as Director of PT Wijaya Karya (Persero) Tbk. Awards & Certification
Ir. Novel Arsyad, MM. Ir. Chandra Dwiputra, MM. Director of Human Capital and System Director of Operation I Development
An Indonesian citizen of 49 years old Mr Chandra Dwiputra was born on born in Surakarta on September 30, December 20th, 1963. Began his 1967. He graduated from Universiras career in PT WIJAYA KARYA (Persero) Islam Indonesia in Yogyakarta with a Tbk., Since 1987 as staff of PEP, Bachelor’s degree in Civil Engineering Chandra who completed the strata and from Bina Nusantara University 1 civil engineering at the University with a Master’s degree in Strategic Iskandar Muda in Banda Aceh has Management in 2012. He currently held various key positions in the lives in Jakarta and has been serving Department of Operations, such as: as the Director of Human Capital and Project Manager of Rehabilitation System Development since March Citarum river, Project Manager 17th, 2017. of Cilacap Power Plant, Project Manager of Tayan Alumina Plant, and Mr. Arsyad began his career at PT Industrial Plant Operations Division WIJAYA KARYA (Persero) Tbk. in Manager in 2016. Chandra who Building Division as a Technical hold master degree in Management section staff at Bank Pelita Jakarta from Surabaya's 10 November Project on December 20, 1991. Since Institute of Technology then fulfill then, he has held various positions, as Construction Operations Director such as the Head of Solo Paragon in PT WIJAYA KARYA Industry and Project, Manager of The Adhiwangsa Construction before he comes Residences Project and Mall Surabaya to holding company as Director Project, Manager of Business of Operations I PT WIJAYA KARYA Development, Division Manager (Persero) Tbk. since March 17, 2017. and General Manager of Building Construction Department and President Director of Wika Gedung.
Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 75 Jl. D.I. Panjaitan Kav. 9 Jakarta 13340, Indonesia P. +62 21 819 2808 +62 21 850 8640 +62 21 850 8650 F. +62 21 819 1235 +62 21 819 9713 E. [email protected] W. www.WIKA.co.id www.wika.co.id