Observer: Taking over WIKA's stake in PSBI will save the public and pensioners

Jakarta (ANTARA) - State-owned enterprise observer and Director of NEXT Indonesia Center Herry Gunawan said that the takeover of PT Wijaya Karya Tbk’s (WIKA) shares in PT Pilar Sinergi BUMN Indonesia (PSBI) needs to be resolved comprehensively, including the return of its investment funds.

WIKA has invested around Rp6 trillion and holds a 33.36 percent stake in PSBI, which is the controlling shareholder of PT Kereta Cepat Indonesia China (KCIC), the company working on the Whoosh high-speed railway project.

“Regarding the takeover mechanism, it should be done through a business-to-business mechanism. Do not forget that WIKA is a public company, so it needs to be accountable for its corporate actions to stakeholders, both retail investors and regulators,” Herry said when contacted by ANTARA in Jakarta on Wednesday.

Herry stressed that WIKA needs to receive a return of its investment funds from the share takeover in accordance with the agreed price and the number of shares the company holds in PSBI.

According to him, the mechanism for the government’s takeover of WIKA’s shares in PSBI must be carried out through a divestment scheme (share sale and purchase) rather than through a grant.

In addition, he said the settlement must be comprehensive, including the process of returning the investment funds of around Rp6 trillion that the company has paid to PSBI.

“This scheme needs to be an option, because state-owned enterprises like WIKA have already poured funds into PSBI, and everything must be accounted for to the public, both in terms of transparency and accountability. Not through a grant,” Herry said.

Herry explained that the takeover mechanism for WIKA’s shares in PSBI through a divestment scheme can maintain the trust of stakeholders, including investors, in the government and state-owned enterprises.

“The business mechanism through divestment or the transfer of ownership through a business mechanism is important for the government to maintain, in order to preserve investor confidence,” Herry said.

If the share takeover is not carried out in a business-to-business manner, Herry warned of the potential impact on the company’s sustainability due to the high level of debt used to finance the project, as well as the emergence of negative perceptions from investors towards other state-owned enterprises listed on the capital market.

“If the share transfer is not done in a business manner, meaning there is no sale and purchase transaction of shares or ownership, this could affect the business sustainability of other state-owned enterprises that have become publicly listed companies,” Herry said.

Previously, WIKA received a government assignment to invest around Rp6 trillion in PSBI, which is the holder of a 60 percent stake in PT Kereta Cepat Indonesia China (KCIC).

The investment funds were obtained by WIKA through bank loans, sukuk, and bonds.

This condition has resulted in a high debt burden that the company must bear every year.

In particular, the protracted settlement of the sukuk and bond debt burden has had a direct impact on the public and institutions holding the securities, including public investment fund collectors such as pension fund institutions (Dapen).

If the takeover of WIKA’s shares in PSBI is accompanied by the return of the Rp6 trillion investment funds, it is projected to potentially help WIKA avoid a potential loss of around Rp2 trillion per year arising from loan interest expenses and the obligation to absorb PSBI’s losses.

In addition, WIKA’s obligations to creditors, including the public and pensioners through Dapen, can be fulfilled, so that WIKA’s shares, which have been suspended by the Indonesia Stock Exchange (BEI) for almost two years, can be traded again.

For information, the Whoosh project is being carried out by PT KCIC, whose shares are 60 percent owned by PSBI and 40 percent owned by Beijing Yawan HSR Co Ltd.

Chief Operation Officer (COO) of Danantara Indonesia Donny Oskaria acknowledged that WIKA is currently in a concerning condition due to the debt burden from the Whoosh investment and construction cost overruns, but the government will not allow the situation to drag on.

“This is a burden for them (WIKA), but in the end we have to resolve it, we cannot just ignore it,” Dony said.

Meanwhile, Finance Minister Purbaya Yudhi Sadewa said the Ministry of Finance will take over the 60 percent ownership stake in KCIC, targeted for completion by mid-September 2026.

Purbaya explained that KCIC will be managed through a special mission vehicle (SMV) unit under the Ministry of Finance, so that it will not become a direct burden on the state budget (APBN).

“It will be transferred to the Ministry of Finance, and I will manage all of KCIC. But later we will use one of the state-owned enterprise arms, our fiscal SMV, to manage it. We have many, there are SMVs and others. So it will not directly become the responsibility of the APBN,” Purbaya said.