PT WIJAYA KARYA (Persero) Tbk and 11 financial institutions have agreed on a Master Restructuring Agreement (MRA) with an outstanding value of Rp24.20 Trillion or equivalent to 87.1% of the restructured debt as of January 23, 2024. The agreement was signed by WIKA's Director of Finance and Risk Management Adityo Kusumo and WIKA's HC Management Director Hadjar Seti Aji with the heads of financial institutions and witnessed directly by Deputy Minister of BUMN Kartika Wirjoatmodjo and WIKA President Director Agung Budi Waskito in Jakarta (23/1).
Agung Budi Waskito (BW) said that the achievement of the agreement is a step forward in the financial restructuring process and accelerates the Company's recovery.
"This agreement shows that WIKA's recovery efforts are fully supported by the Ministry of BUMN and the financial institutions that have been working with WIKA so far. They believe that WIKA is capable of recovering and want to take part in this movement," said Agung BW.
With the achievement of the MRA, WIKA can now focus on continuing other recovery stream methods to achieve a strong foundation and run a sustainable business.
"The Company is also determined to boost operational activities and complete the strategic projects that have been entrusted to the Company well. With that, what we have achieved together today can lead us all to optimal results that are also beneficial for WIKA, shareholders, financial institutions, as well as the nation and country," said Agung BW.
Impressive Progress from WIKA's Recovery Stream
In addition to financial restructuring, the recovery stream methods that have been formulated by WIKA have shown impressive progress. The capital structure strengthening method has received support from the Government through Presidential Regulation No. 76 of 2023 concerning Details of the State Budget for Fiscal Year 2024 and approval of additional capital by providing the Right to First Offer (HMETD) through EGM on January 12, 2024.
The Company has also taken steps to improve the orderbook portfolio, where currently 93% of the projects worked on by WIKA have used a monthly progress payment mechanism so that the projects owned by the Company can operate independently, a significant change compared to 2016 when projects with this mechanism were only 40% of WIKA's total portfolio.
Strengthening Corporate Governance and Risk Management with 3 programs has been realized in 2023 by the Company, namely updating the ERP system as a whole both in projects worked on by WIKA with the KSO (joint operation) mechanism and non-KSO, implementing the four eyes principles, and activating the Digital Control Tower (DCT) as a facility for real-time monitoring of company performance by integrating applications to obtain data so that decisions can be made quickly and more accurately.
The method of accelerating the collection of bad debts has also yielded results with the establishment of an Asset Management Division that is directly responsible to the Board of Directors and has proven to have shown a decrease in the value of bad debts by 21% until September 2023 compared to December 2022.
Agung BW said that the realization of these various programs shows that the recovery methods as part of the ongoing transformation are on the right track and are believed to be able to bring WIKA back to its glory and achieve its sustainability.
"For that, we appreciate the support that has been shown by stakeholders, both the government, project owners, shareholders, financial institutions, bondholders and the general public. This shows our seriousness in carrying out transformation so that WIKA can become stronger and ready to go further in the future," said Agung BW.