WIKA Reduces Debt by a Further Rp2.15 Trillion, Here Is the Analysis
The main milestone of the company’s transformation and financial recovery was the first-phase financial restructuring on 28 February 2024. Referring to the company’s financial statements up to 30 June 2026, following that action WIKA has successfully paid obligations to bank creditors and bondholders amounting to Rp4.17 trillion, of which Rp915.83 billion was paid during the period from Q2 2025 to Q2 2026.
On the other hand, the company has also significantly reduced its debt to business partners following the first-phase restructuring, by Rp5.02 trillion, of which a reduction of Rp1.23 trillion occurred during the period from Q2 2025 to Q2 2026, leaving the current debt position to business partners at Rp4.32 trillion. With the fulfilment of obligations to creditors and business partners, the company has realised a total debt reduction of Rp2.15 trillion throughout Q2 2025 to Q2 2026.
This step reflects disciplined, independent and consistent cash management to continue reducing the principal debt, with debt payments sourced from the company’s operating cash flow. The improvement in operating cash flow is also reinforced by selective project selection based on monthly progress payments, which have reached 96% of total ongoing contracts, as well as efforts to accelerate receivables collection. Throughout Q2 2025 to Q2 2026, the company succeeded in reducing total receivables by Rp2.07 trillion, directly contributing to liquidity availability.
From an operational perspective, the company’s gross profit margin (GPM) for Q2 2026 was recorded as increasing to 14.1% from 8.1% in the same period the previous year. The margin increase came from the excellence of the company’s core business activities, namely infrastructure and building construction as well as EPCC. This contributed to the company’s positive operating EBITDA of Rp769.01 billion. This shows that following the first-phase restructuring, the company’s operational performance has been able to run increasingly superior, effective and efficient.
“The implementation of these transformation measures is an important part of the recovery being undertaken by WIKA. The reduction of debt to business partners and creditors, proper cash management, improved governance, reduced opex and the implementation of lean construction are the company’s main priorities in ensuring a healthy and strong business sustainability. These steps also maintain increasingly optimal operational performance quality amid the challenges in the construction sector,” said Ngatemin, Corporate Secretary of WIKA.
“This recovery transformation is a sustainable effort that the company will consistently carry out to provide added value to all stakeholders,” Ngatemin continued.