To Improve Its Financial Ratios, WIKA Sells All of Its Shares in Hotel Indonesia Group

Jakarta – The step to restore WIKA’s financial structure takes a new, drastic turn. PT Wijaya Karya (Persero) Tbk (WIKA), the state-owned construction group, has formally divested its entire stake in PT Hotel Indonesia Group (HIG). The move is strategic, reaffirming the company’s focus on its core infrastructure business and bolstering liquidity.

In a disclosure to the Indonesia Stock Exchange (BEI), WIKA said it had completed the sale of all its shares in HIG. The divestment forms part of an asset-disposal strategy that is not directly related to the company’s main competencies in construction and manufacturing. WIKA’s immediate focus is to strengthen its capital structure and ensure operational continuity on national priority projects.

‘This divestment is aimed at supporting the strengthening of the company’s cash flow and focusing on its core construction business,’ said Mahendra, as cited on Saturday (7 March 2026). Market observers regard the move as a positive signal for creditors and investors. Offloading ownership in the hotel sector signals disciplined portfolio management, with the previous portfolio judged to be too large and inefficient for a construction company.

With the sale of HIG, WIKA is expected to trim unnecessary operating costs and redeploy resources to accelerate infrastructure project delivery. The divestment aligns with the Ministry of State-Owned Enterprises’ directive that state-owned firms should specialise. Looking ahead, WIKA’s challenge is not merely asset disposal but to demonstrate that the proceeds genuinely improve the company’s bottom line after a period of challenges.