JAKARTA. PT Wijaya Karya (Persero) Tbk (WIKA) has provided a shareholder loan to PT Wijaya Karya Serang Panimbang (WSP), a subsidiary in charge of the Serang-Panimbang toll road project.
"In order to support WSP's growth and the Serang-Panimbang toll road project, the company has provided a Rp 1.25 trillion shareholder loan to WSP," said WIKA Corporate Secretary Mahendra Vijaya in a stock exchange filing.
The loan, Mr Vijaya added, is an affiliate transaction due to WIKA currently owning a 92.21% stake in WSP. However, he affirmed that it is not a material transaction because it is only worth 7.23% of the company's total equity.
WIKA provided the loan so that WSP could obtain a temporary bailout before the disbursement of funds from financing institutions. As such, WSP will be able complete land acquisition for the development of the Serang-Panimbang toll road.
According to IDNFinancials.com's data, the loan was provided while WIKA's cash and cash equivalents are in a scarce position. As of late September 2020, the company has Rp 7.69 trillion in cash and cash equivalents, lower than Rp 10.35 trillion in December 2019. (KR/MS)