Indonesian Construction Companies Post Strong Growth in 2013
Four publicly listed - yet state controlled - construction companies recorded a combined 42 percent growth (year on year) in net profit in 2013. The combined net profit of these four companies - Wijaya Karya (Wika), Adhi Karya, Pembangunan Perumahan (PP) and Waskita Karya - totaled IDR 1.74 trillion (USD $146.2 million) last year. These numbers evidence the robust growth that Indonesia's property and infrastructure sectors experienced in 2013 and is expected to continue in 2014.
| Net Profit¹ | Revenues² | |||
| 2013 | 2012 | 2013 | 2012 | |
| Wijaya Karya³ |
555.6 | 457.8 | 15.4 | 9.8 |
| Adhi Karya |
405.9 | 211.5 | 9.79 | 7.6 |
| PP |
420.0 | 309.0 | 11.6 | 8.0 |
| Waskita Karya |
368.0 | 254.0 | 9.6 | 8.8 |
¹ in IDR billion
² in IDR trillion
³ unaudited
Source: Investor Daily
Adhi Karya recorded the largest growth in net profit with a 91.1 percent jump to IDR 405.9 billion (USD $34.1 million). The company is engaged in construction services, property, real estate, infrastructure development, and engineering, procurement and construction (EPC).
Wijaya Karya (Wika) posted the highest net profit at IDR 555.6 billion (USD $46.7 million) although this preliminary figure is unaudited. The company, which is focused on civil engineering, building construction, and construction of industrial plants as well as energy facilities, targets a 22 percentage growth in net profit in 2014 as it remains positive about Indonesia's construction and infrastructure sectors this year.
Pembangunan Perumahan (PP), with its lines of businesses consisting of construction services in building and infrastructure, property, engineering, procurement and construction (EPC), recorded a 36 percentage growth in net profit as it gained IDR 19.58 trillion (USD $1.6 billion) in new contracts. When other contracts are included, the company's order book totaled IDR 35.45 trillion (USD $3.0 billion) in 2013. This year, the company targets a 23.8 percent growth in net profit as new contracts are expected to amount to IDR 24 trillion. This year's capital expenditures are expected at IDR 446 billion (USD $37.5 million), a 120 percentage growth compared to capital expenditures in the previous year.
Lastly, Waskita Karya, a general contractor engaged in a wide range of construction activities including highways, bridges, ports, airports, buildings, sewerage plants, cement plants, factories and other industrial facilities, posted a strong 44.9 percentage growth in net profit in 2013. This year, the company targets net profit to reach IDR 445 billion (USD $37.4 million). About 95 percent of the company's revenues are accounted for by construction contracts. In 2014, it aims to receive IDR 21 trillion in new contracts and plans to spend IDR 800 billion on capital expenditures.