Wika Gedung (WEGE) Contracts Surge 568%, Majority from Government Assignments

Jakarta, CNBC Indonesia - State-owned property issuer PT Wijaya Karya Bangunan Gedung Tbk (WEGE) recorded a 568% increase in new contract acquisition as of August 2026.

Through an IDX information disclosure, WEGE recorded new contracts worth Rp775 billion. This figure increased significantly from the previous year, which was only Rp116 billion.

The composition of project owners in the company’s new contracts is predominantly supported by the government at 83%, followed by state-owned enterprises (BUMN) at 17%. In terms of project typology, the public facilities segment is the main contributor at 63%, while the remaining 37% comes from residential development.

Projects obtained by the company include Temporary Housing (Huntara) in Aceh Tamiang, ASN Housing in Aceh, Post-Emergency North Sumatra, Post-Emergency West Sumatra, BRT North Sumatra (Mebidang), Garuda School North Kalimantan (JO), Office Keet SR Aceh, RSUD Rupit (JO), Modular Internal Huntara Aceh, RDBI North Sumatra, Huntara Tegal, Lokop Aceh Community Health Centre Housing, Huntara Tamiang 4 Danantara, Construction of Temanggung Polyclinic, and a Hospital in South Kalimantan.

From a financial perspective, the company recorded a reduction in interest expense, as seen from the company’s Debt to Equity Ratio (DER) as of June 2026, which stood at 0.98x. In other words, the company has a very safe financial condition in terms of debt, with an interest-bearing debt ratio of only 0.07x. The company also has no bond debt or sukuk debt.

“This makes the company better able to maximise operational leverage flexibly without being burdened by high cost of funds,” as quoted on Wednesday, (26/8/2026).

In line with industry dynamics and pressure on the company’s revenue in recent periods, the company is undertaking a number of transformation measures to strengthen liquidity and financial structure. One of these is through portfolio optimisation, including a divestment plan for a number of assets deemed optimisable worth more than Rp1 trillion.

Assets included in the divestment plan include Fave Hotel Karawang, Menara MTH floors 10 and 15, de Braga Bandung, Graha Mantap, as well as several company land parcels in Lombok, Samarinda, and other locations.

This measure is directed at improving asset utilisation effectiveness while strengthening the company’s focus on its core business in construction, so that the company has a healthier, more adaptive, and sustainable business structure.