WIKA Cuts Debt Burden by Rp 2 Trillion, Focuses on Restructuring and Receivables Collection

JAKARTA – PT Wijaya Karya (Persero) Tbk (WIKA) has demonstrated serious progress in efforts to clean up its financial report. This state-owned construction issuer has successfully reduced its interest-bearing debt burden significantly throughout 2025 as part of the company’s major transformation. The latest data shows WIKA’s interest-bearing debt position now stands at Rp 33.4 trillion. This figure is down compared to 2023, which once reached Rp 36.9 trillion. In percentage terms, interest-bearing debt has shrunk by 5.9 per cent, while trade debt has dropped drastically by 29.5 per cent, equivalent to Rp 1.79 trillion. Amid pressures in the slowing construction industry, the company has chosen a comprehensive restructuring path rather than reckless expansion. WIKA’s Corporate Secretary, Ngatemin, explained that improvements in the capital structure are being carried out consistently through eight streams of financial recovery. This strategy serves as the main foundation for maintaining the company’s sustainability. Although focused on cutting debt, WIKA’s operational engine has not stopped. The company recorded new contracts worth Rp 17.46 trillion in 2025. The total ongoing contracts (order book) held amount to Rp 50.52 trillion, which subsequently generated sales of Rp 20.45 trillion. WIKA also recorded an increase in Gross Profit Margin (GPM) to 8.5 per cent from 7.9 per cent in 2024. Positive operational EBITDA of Rp 426.52 billion is claimed to reflect that ongoing projects are still capable of generating healthy operating profits. In addition to cutting debt, WIKA has been aggressively collecting receivables and pursuing legal mediation. As a result, the value of receivables has decreased by Rp 1.89 trillion, or around 29.2 per cent, to Rp 4.58 trillion. The strategy of divesting unproductive assets has also been key for WIKA this year. The company recognises that support from majority shareholders and creditors is very necessary to complete this transformation. The reduction in interest expenses due to debt repayments is expected to improve the company’s net profit in the long term.