Bambang Pamungkas
Jakarta, CNBC Indonesia – PT Waskita Karya (Persero) Tbk (WSKT), one of Indonesia’s leading state-owned construction companies, reported a significant consolidated revenue of Rp 8.85 trillion for the fiscal year 2025. This performance marks a crucial milestone in the company’s ambitious financial health and operational transformation agenda. The impressive figure was bolstered by substantial contributions from its subsidiaries, which collectively generated Rp 3.1 trillion, complementing the parent company’s revenue of Rp 5.75 trillion. The company’s Corporate Secretary, Ermy Puspa Yunita, highlighted that this positive financial trajectory is largely attributable to Waskita Karya’s unwavering commitment to government-backed projects and a comprehensive strategy focused on efficiency and technological integration.
Detailed Financial Performance and Operational Efficiencies
Waskita Karya’s revenue streams in 2025 were diversified across several key business segments, underscoring its broad expertise in infrastructure development. Connectivity projects emerged as the primary driver, contributing a substantial Rp 3.3 trillion. This segment encompasses critical infrastructure such as roads, bridges, and transportation networks, which are vital for national economic growth and regional integration. The Water Resources (SDA) segment followed, generating Rp 1.4 trillion, reflecting Waskita’s involvement in essential water management projects, including dams, irrigation systems, and flood control infrastructure. Building construction added Rp 1.2 trillion to the top line, covering various public and commercial structures, while other segments collectively accounted for Rp 0.9 trillion. Ermy Puspa Yunita emphasized that the majority of this revenue was derived from various government projects, reinforcing Waskita Karya’s pivotal role in supporting national development programs and public infrastructure initiatives.
Despite the strong revenue generation, Waskita Karya recorded a cost of goods sold (COGS) of Rp 7.2 trillion, representing approximately 82% of its total operating revenue. This figure reflects the inherent capital intensity of the construction sector. However, the company is actively addressing this through rigorous project management and cost control measures. A key strategic objective for Waskita Karya in the coming years is the diligent completion of outstanding legacy projects, with a clear target to finalize all such projects by 2026. This focus on resolving historical commitments is crucial for improving cash flow and reducing financial overhangs that have previously impacted the company’s profitability.
The efforts to enhance operational efficiency bore fruit in 2025, with Waskita Karya reporting a gross profit of Rp 1.58 trillion. This represents a commendable 12% increase compared to the Rp 1.41 trillion recorded in 2024, signaling a positive shift in the company’s profitability margins. Concurrently, the gross profit margin improved significantly to 18% in 2025, up from 13% in 2024. This notable improvement demonstrates the effectiveness of the company’s strategic initiatives to optimize project execution and reduce operational costs. Ermy Puspa Yunita attributed this enhanced profitability directly to "operational efficiency strategies implemented across both the parent company and its subsidiaries," highlighting a holistic approach to financial discipline and project management.
Embracing Digital Transformation and Operational Excellence
A cornerstone of Waskita Karya’s turnaround strategy is its aggressive pursuit of digital transformation and the implementation of a lean organizational structure. These initiatives are designed to foster greater efficiency, effectiveness, and innovation in project execution. The company has moved to integrate its Core System ERP SAP S/4 HANA with Building Information Modelling (BIM) and the Last Planner System (LPS). This integration is critical for creating a unified data environment, enabling real-time project tracking, enhancing collaboration among project stakeholders, and optimizing resource allocation. BIM, in particular, allows for virtual construction before physical groundbreaking, significantly reducing errors, improving cost predictability, and accelerating project timelines. The LPS methodology further refines project scheduling and coordination, ensuring that tasks are executed efficiently and bottlenecks are minimized.
Beyond integrated systems, Waskita Karya is leveraging advanced digital innovations, including Artificial Intelligence (AI), to revolutionize its operational processes. The company’s proprietary AI technology, WISENS (Waskita Intelligent Sensing System), is being deployed in various construction projects. A prime example is the AI Pavement Crack Detection system, designed to assist Waskita in identifying road damage with unprecedented accuracy and speed. This technology is a critical component of the company’s "zero defect" target in construction processes, aiming to eliminate structural failures and ensure the highest quality standards. Ermy explained, "Through the use of AI, the automatic calculation of the number and types of damage can be done more efficiently, supporting the inspection and supervision of toll road assets. Inspection time can be optimized by more than 40 percent." This represents a significant leap in predictive maintenance and quality assurance, translating into long-term asset value and reduced lifecycle costs.
The transformation extends to strengthening Information Technology (IT) governance. Waskita Karya has undertaken several system developments, including the creation of an Integrated Management Dashboard. This centralized platform provides real-time insights into project performance, financial health, and operational metrics, enabling informed decision-making at all levels of management. Furthermore, improvements to the company’s financial systems are being implemented to bolster Internal Control Over Financial Reporting (ICOFR), enhancing transparency and accountability. Ermy articulated the overarching vision: "Overall, the ultimate goal of Waskita’s transformation is the continuous creation of operational excellence. We will always strive to complete projects with the best quality, on time, and at efficient costs." This commitment underpins the company’s drive to become a leader in sustainable and high-performing construction practices.
Strategic Financial Deleveraging and Asset Optimization
In a significant move towards financial stability, Waskita Karya successfully reduced its total liabilities by Rp 2.21 trillion in 2025. This achievement is a testament to the management’s focused strategy on deleveraging the company’s balance sheet. The core of this strategy involves accelerating the divestment of non-core assets, particularly toll road concessions, and optimizing its existing asset portfolio. These measures are pivotal in Waskita Karya’s broader strategic shift to return to its core business as a "pure contractor," moving away from its previous role as an asset owner and developer, which had exposed it to higher financial risks.
Several key divestments were executed in 2025, demonstrating the company’s resolve in this strategic pivot. In September, PT Waskita Karya Infrastruktur (WKI), a subsidiary, divested 94.7% of its stake in PT Waskita Sangir Energi (WSE). This was followed in November by PT Waskita Toll Road’s divestment of a 35% stake in PT Cimanggis Cibitung Tollways (CCT), a critical step in streamlining its toll road portfolio. Concluding the year, in December 2025, PT Waskita Karya Realty (WKR), another subsidiary, officially divested 20% of its shares in PT Waskita Modern Realty (WMR). These divestments are not merely about shedding assets but are calculated moves to optimize the investment portfolio, enhance financial liquidity, and focus capital on core competencies, thereby strengthening WSKT’s overall financial position.
Selective New Contract Acquisition and Project Management
Concurrent with its deleveraging efforts, Waskita Karya has adopted a more selective approach to acquiring new contracts. The company now prioritizes projects with more favorable payment terms, such as monthly payments, and actively avoids high-risk "turnkey" projects that can strain cash flow and expose the company to significant financial liabilities. Through its Construction Management Committee, Waskita Karya ensures that all prospective projects are thoroughly vetted for financial viability and risk profiles, aiming to secure engagements that do not burden the company financially and carry low execution risks.
This strategic shift has not hampered growth in new contract acquisition. In fact, Waskita Karya recorded a total New Contract Value (NKB) of Rp 12.52 trillion, a significant increase from Rp 9.55 trillion in 2024. This growth underscores the company’s continued competitiveness and strong market position, even with a more stringent selection process. The newly acquired projects are predominantly government-led initiatives, spanning various sectors from irrigation networks and "Sekolah Rakyat" (People’s Schools) to the construction of Regional General Hospitals (RSUD) across different regions. These projects are integral to supporting the government’s "Program Hasil Terbaik Cepat" (PHTC), or Rapid Best Results Program, aimed at delivering impactful public services efficiently. Ermy underscored Waskita’s commitment, stating, "The execution of these projects is a manifestation of Waskita’s contribution to the success of poverty alleviation and welfare improvement efforts, which are the current president’s focus. We will continue to drive and assist in the success of government programs."
As of December 31, 2025, Waskita Karya was actively managing 63 projects across Indonesia, with a total contract value reaching Rp 31.7 trillion. This extensive portfolio highlights the company’s vast operational footprint and its critical role in the nation’s infrastructure development.
Comprehensive Debt Restructuring and Future Outlook
A central tenet of Waskita Karya’s recovery plan is the comprehensive reduction of its total debt burden. This has involved significant negotiations and agreements with creditors. A pivotal achievement was the Master Restructuring Agreement (MRA) and the Working Capital Guarantee Credit (KMKP) 2021, which received approval from 22 banking creditors in October 2024. This agreement covers a substantial outstanding value of Rp 31.65 trillion, providing a structured pathway for debt repayment and financial stability.
Furthermore, the company has made significant progress in restructuring its non-guaranteed bonds, valued at Rp 3.35 trillion. Through General Meetings of Bondholders (RUPO), approvals have been secured for three out of four series of these bonds, demonstrating broad creditor confidence in Waskita’s recovery plan. Ermy confirmed that "these debt reduction efforts are in line with the Financial Health Plan (RPK) approved at the General Meeting of Shareholders (RUPS)." This integrated approach to financial recovery is designed to ensure Waskita Karya’s long-term sustainability.
Looking ahead, Waskita Karya is firmly committed to re-establishing itself as a pure contractor, focusing on its core competencies in construction and project management. This strategic repositioning is expected to create more sustainable operational activities and reduce exposure to market fluctuations inherent in asset ownership. The company is also enhancing its corporate governance and risk management frameworks through the establishment of various committees at both the Board of Commissioners and Board of Directors levels. These initiatives are designed to foster greater adaptability and resilience in navigating future challenges, ensuring that Waskita Karya remains a robust and reliable partner in Indonesia’s ongoing development.
The company’s operational expenses (Opex) for 2025 stood at Rp 1.7 trillion, with 76.6% comprising cash operational costs and the remaining 23.4% being non-cash expenses such as depreciation and amortization of company assets. This breakdown indicates a healthy management of day-to-day expenditures. Waskita Karya’s journey through 2025, marked by improved financial performance, aggressive debt reduction, and a forward-looking digital transformation strategy, positions it on a solid path towards sustained growth and renewed market confidence. The emphasis on operational excellence, selective project acquisition, and a strong commitment to national development programs underscores Waskita Karya’s strategic intent to not only regain its financial health but also to reinforce its foundational role in building Indonesia’s future.
