TEMPO.CO, Jakarta - Indonesian state-owned construction firm Waskita Karya (WSKT.JK) expects a bigger net loss of 3.97 trillion rupiah ($242.96 million) for 2025, its president director said on Wednesday, March 5, 2025, amid a substantial reduction in state-led infrastructure projects.
The unaudited net loss for 2024 was 3 trillion rupiah.
Waskita has been struggling to pay its debts after its finances were hit hard by the impact of pandemic. It took on a lot of debt to fund a government-led infrastructure push.
President Director Muhammad Hanugroho told a parliamentary hearing the firm expected revenue this year of 10.8 trillion rupiah, slightly higher than the 10.6 trillion rupiah in 2024, coming both from existing and new contracts.
"We need to find new markets or shift to new ministries to get new projects," Muhammad said, referring to fewer expected contracts from the public works ministry this year.
Jobs from the central government to Waskita usually comprise 65% of its total contracts, but since early 2025, or when President Prabowo Subianto embarked on efficiency measures for ministries, the jobs expected from the government reduced that share to 55%.
Shares of Waskita has been suspended since 2023 after it delayed a coupon payment on bonds due in 2024. In September, Waskita reached a $2.05 billion restructuring deal with 20 banks.
($1 = 16,340 rupiah)
REUTERS
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