Management Strategy

Management Strategy

In an effort to support the Company’s Primary Strategy as determined by the Company namely Growth Strategy, the Company specified a business development strategy based on the formulation between vertical integration and horizontal integration. The Vertical Integration Strategy focuses more on operational improvement efforts through backward integration which emphasizes more on improving competitiveness by improving the supply chain and forward integration which emphasizes more on improving competitiveness by minimizing the possibility of reworks and delays in delivery from occurring. This strategy is formulated with horizontal integration strategy in an effort to strengthen the forward integration especially in winning the competition from competitors in the construction industry in order to achieve maximum operational performance.

The Company’s strategy planning is more on synergising and integrating competencies already shown by all its subsidiary companies in maximizing WIKA’s main business which includes public civil works, utilities, energy and building construction which is now managed by WIKA Building. The Backward Integration Strategy is demonstrated by the synergetic connection among WIKA Beton, WIKA Intrade and WIKA Insan Pertiwi in supporting the main business of WIKA in an integrated manner.

The Forward Integration Strategy is demonstrated in the connection between the activities of WIKA’s main business with WIKA Realty, WIKA Jabar Power, as well as WIKA’s participation in the Surabaya-Mojokerto toll-road project in PT Marga Nujyasumo Agung and the Kunciran Cengkareng toll-road project in PT Marga Kunciran Cengkareng, where WIKA got the added value as a contractor and supporting the accelerating the execution of development on strategic projects that include investments in toll-road projects, IPP Power Plant, Oil and Gas, and Building Construction.

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