JAKARTA. This year, PT Waskita Karya Tbk (WSKT) will receive payments from a number of turnkey projects that will be completed and other project payments totaling Rp 33.2 trillion. With this payment, WSKT's gearing ratio will drop to 2 times.
The payment received from the turnkey projects is estimated to reach Rp. 25.5 trillion, other revenues from projects with a monthly payment scheme and return of land bailouts of Rp. 7.7 trillion, bringing a total of Rp. 33.2 trillion. With the payment, Waskita Karya can repay its debts to lending institutions that have been used to finance a number of projects.
Finance Director of Waskita Karya, Haris Gunawan, revealed that the company's debt in 2015-2018 was very high because many companies worked on turnkey projects, and the payments would be made after the project was completed.
With the debt payment, Waskita targets that this year, the company will lower its gearing ratio (loan amount compared against capital) to 2x at the end of this year.
Turnkey project is a payment from the developer or project owner to the contractor carried out when the work has been completed in full, or when the project is handed over from the contractor to the owner. (AM/AR)