The state-owned construction company – PT Waskita Karya – was established in 1961 as the corporate successor to the nationalized Volker Aannemings Maatschappij NV (Volker Wessels). Waskita, Karya, specializing in major commercial and residential projects, is traded as (WSKT) on the Indonesian Stock Exchange.
Unfortunately, PT Waskita Karya has an unenvied reputation for late payment to vendors and subcontractors. On 27 April 2023, the President Director of Waskita Karya, Destiawan Soewardjono, and seven other people were detained by government investigators on corruption charges concerning payment procedures for funds allocated for “fictitious work projects.” The Corruption Eradication Agency (KPK) estimated losses in the case totaling Rp. 2.5 trillion (US$ 67 Million).
Kompas.com reports that the Indonesian Stock Exchange decided to suspend the trading of WKT Shares when the Company could not make scheduled payments against principal and interest owed to creditors. The most recent failure by Waskita Karya to meet its obligation was not the first time; similar missed payment deadlines have happened many times during the Company’s long-standing liquidity crisis.
PT Waskita Karya Trading Suspended
Information released by the Indonesian Stock Exchange (Bursa Efek Indonesia – BEI) said the suspension of trading by WSKT was confirmed in a letter from the Official Custodians of Central Stock Exchange (PT Kustodian Sentral Efek Indonesia – KSEI) Number KSEI-2496/DIR/0823 dated 4 Agustus 2023. The letter addressed Waskita Karya’s 12th consecutive failure to make payments against principal or interest that fell due in 2020. As a result, BEI declared that it is temporarily suspending the trading of the Shares of PT Waskita Karya. The suspension commenced on 07 August 2023 and remains in effect until further notice.
Before the current suspension, Waskita Karya was temporarily suspended from trading their shares in May of 2023. That suspension was also due to a failure to make payments on obligations due on 06 May 2023 for debts dating from 2020.
Public financial reports published on 30 June 2023 listed total company debts of Rp. 84.31 trillion composed of Rp. 22.79 trillion in short-term debt and Rp. 61.52 trillion in long-term debt. Short-term debt falling due in less than one year left Waskita Karya owing their bankers an installment of Tp. 868.37 billion. Meanwhile, a medium-term deb installment demanding payment amounted to Rp. 250 billion, and a further payment against long-term debt of Rp 6,566 trillion.
Current assets comprised of cash and other instruments total only Rp. 1.72 trillion. This amount is far less than required to meet expenses due for imminent payment.
Waskita Karya’s total assets are reported at Rp. 96,32 trillion, comprised predominantly of non-liquid assets totaling Rp. 72.15 trillion and equity of only Rp. 12 trillion. The Company has limited equity resources of Rp. 12 trillion.
The Company continues to annually accrue penalties for repeated failure to meet its debt obligations. The Company has repeatedly applied through the Indonesian Courts to reschedule its debts.
Based on financial reports for Q2 2023, Waskita Karya noted a loss of Rp. 2.23 trillion. Earlier, for all of 2022, the Company recorded a loss for the year of Rp. 1.9 trillion. In 2021, the total loss was Rp. 1.1 trillion, after a record-setting loss in 2020 of Rp. 7.38 trillion.
Some of the major projects completed by Wastika Karya, listed by year of completion, are:
- Aji Pangeran Tumenggung Pranoto International Airport, Samarinda, Kalimantan (2018)
- Samarinda International Airport, Samarinda, Kalimantan (2014)
- Tsunami Museum, Aceh (2009)
- Wisman BNI, Jakarta (1996)
- Niaga Tower, Jakarta (1992)
- TVRI Tower (1962)
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