Wijaya Karya aims to attract up to IDR 10 trillion of repatriated funds to finance its projects.
Wika
Katadata | Arief Kamaludin

Wijaya Karya has announced it is ready to manage repatriated funds from the government’s tax amnesty program. The company is currently making the preparations for investment of these funds in toll road projects for these funds.

“They are the Manado-Bitung and Balikpapan-Samarinda toll roads, and the Soreang-Pasir Koja toll road in Bandung,” said Wijaya Karya Corporate Secretary Suradi on Friday (29/7). However, he was unable to estimate the value of these investments.

Wijaya Karya has other toll road projects that could be appeal to tax amnesty participants seeking an investment. These include the Serang-Panimbang toll road in Banten and the Cisumdawu toll road in Jatinangor, West Jawa. The company is currently participating in tenders for these two toll road projects.

(Read: Jokowi Describes Projects that Need Tax Amnesty Funds)

Suradi said these toll road projects would be a potentially good investment for tax amnesty participants because they offer a good profit margin. Wijaya Karya is planning to give tax amnesty participants more information and persuade them to invest in these projects.

The company will also prepare two mechanisms for the repatriated funds: loans and equity. These proposed mechanisms have already been submitted to the company’s shareholder, the Ministry of State-Owned Enterprises (SOE).

For the loan scheme, the SOE plans to issue bonds. Meanwhile, the equity scheme would see the company launch initial public offerings (IPO) for some of its subsidiaries.

(Read: Singapore Banks Attempt to Convince Indonesians to Keep Their Monies Overseas)

The company plans to launch IPOs for two of its subsidiaries, Wika Realty and Wika Industri Energi, next year. Wijaya Karya intends to sell some 30 percent of its stake in each of these subsidiaries. Suradi explained that the company aims to generate IDR 1 trillion from these two share divestments.

Another subsidiary, Wika Gedung, will launch its IPO in 2019. Wijaya Karya aims to attract up to IDR 10 trillion of repatriated funds to finance its projects.

(Read: Jokowi Promotes Tax Amnesty in Singapore)

Miftah Ardhian