CORPORATE REPORT 2015 - PT Wijaya Karya … Report 2015 2 PT Wiaya Karya Persero Tb PT WIJAYA KARYA...

CORPORATEREPORT2015

We create the future. A courage to make a breakthrough, only belongs to people who has the vision for the future. WIKA continues to grow; exploring and creating innovation is an enlightenment that builds the future of the nation.

Total New Contract Total Net Sales Total Asset

billion billion billion

USD USD USD1.94 1.10 1.51

CONTENTS

GRAPHIC & TABLE

Company Overview

Operation Area

Corporate History

Message from Director

Financial Highlights

Business Pillars

Business Portfolio

Business Segments Overview

Industry

Infrastructure & Building

WIKA and its subsidiaries consolidated statement of financial position as of December, 2015

Net Sales

Operating Income

Net Income

Income Attributable to Parent Entity Owner

Total Assets

Total Equity

2

4

6

8

10

12

13

14

16

18

10

10

10

10

11

11

11

20

22

24

28

30

34

36

38

40

12

13

27

32

30

Energy & Industrial Plant

Realty & Property

Human Capital

Corporate Social Responsibility

Good Corporate Governance

Awards & Certification

Board of Director

Quality Security Safety Health Environment

Stock Information

Business Pillars

Business Portfolio

Illustration of the model of WIKA’s Human Capital Management

Summary valuation report/evaluation of Good Corporate Governance Implementation in 2015

Comparation of GCG WIKA Assesment Score Result 2008-2015

Corporate Report 2015

PT Wijaya Karya (Persero) Tbk2

PT WIJAYA KARYA (PERSERO) TbkIndonesia’s Leading Integrated EPC & Investment Company

Head OfficeWIKA TOWERJl. D.I. Panjaitan Kav. 10Jakarta 13340, Indonesia

T. +62 21 819 2808F. +62 21 819 1235E. [email protected]

“In the era of information and communication technology, the Company is required to continuously innovate and perform quick and appropriate strategy in facing the competition in regional market that is increasingly competitive”

Ir. Bakti Santoso Luddin, MBAPresident Commissioner

GOING GLOBALWIKA is Indonesia’s leading integrated EPC & Investment Company, which has been operating for over 50 years. It was initially established under a name of Perusahaan Negara Bangunan Widjaja Karja on March 11, 1960, following the nationalization of Dutch company, Naamloze Vennootchap Technische Handel Maatschappij en Bouwbedrijf Vis en Co.

Its business activity at that time covered the installation of electricity and water pipe. One of the contributions of the company in this area can be found in the infrastructure development of the most famous sport stadium in Jakarta, Gelora Bung Karno.

Since then and up to today, WIKA’s business has been continuously expanding, it never stops exploring various areas of development. In the early 1970’s, it expanded into a contractor company of civil and residential buildings. Following its substantial growth, WIKA turned into a limited liability (persero) company on December 20, 1972. With the growth of the company and the skills of WIKA personnel in the construction industry, a number of subsidiary companies were then established in order to support its mission as business ventures that are able to create own products independently. Some of the subsidiary companies were: WIKA Beton, WIKA Realty, WIKA Industri & Konstruksi, WIKA Rekayasa Konstruksi, WIKA Gedung and WIKA Bitumen.

COMPANY OVERVIEW

PT Wijaya Karya (Persero) Tbk

Company Overview

3

WIKA keeps exploring possibilities through utilizing the advance knowledge and state of the art technology; and gaining its strength through acquisition and the establishment of joint ventures.

WIKA’s strength and known success enabled the company to achieve trust as well as acknowledgements from many parties. This was shown by the success of its initial public offering (IPO) on October 29, 2007 in Indonesia Stock Exchange. At that time, 28.46% of its shares were released to the public, 3.14% to employee and 68.42% of its shares were held by the Government of Indonesia. Since December 2012, the percentage of shares issuance was increased by 35%. As an appreciation to its employees, they can also participate in the company’s ownership through the Employee/Management Stock Option Program (E/MSOP) and Employee Stock Allocation (ESA).

In 2010, WIKA arranged its new vision in order to face the global change. WIKA intends to become

one of the best integrated EPC and Investment companies in Southeast Asia by 2020. This vision is believed will enable and help WIKA to reach a more optimum, healthier and sustainable growth.

WIKA has never passed any opportunity of investment and development of challenging infrastructure projects, including government projects which were financed by the State as well as the Local Budget and Expenditure. One of the infrastructure projects was Merah Putih Bridge, Ambon that swept away above Ambon Bay.

WIKA 2015The year of 2015 marked the start of WIKA’s new era by carrying out on large scale infrastructure projects which were not only challenging but staking the nation’s reputation, namely MRT (Mass Rapid Transportation) project in Jakarta and the assignment to work on High Speed Railway Jakarta – Bandung.



OPERATIONAREA

Aside from spreading its operation area worldwide, WIKA has also been developing construction market share in a number of countries in Asia and Africa.

Head Office

Factory

Regional Office

Project

Representative office

Precast Factories Owned by WIKA Beton11

Nationwide


Corporate History

5

Algeria

Myanmar

Timor Leste

Kuching / Serawak,Malaysia

WIKA has diversified business lines, with a focus remained on business related to WIKA core business through a vertical integration strategy (backward & forward integration), in order to provide total solution in the business

Overseas

Total New Order Book

USD

billion1.94



CORPORATEHISTORY

1960 1982 2000 20082007 200919971972

Pursuant to Government Regulation No.2/1960 and Minister’s Decre of Public Works and Electric Power (PUTL) Decree No. 5 dated 11 March 1960, WIKA was established with the name of “Perusahaan Negara Bangunan Widjaja Karja”. WIKA’s business activities at the time were electrical and water pipe installation works.

WIKA formed several new divisions, namely the Construction Civil Division, Buildings Division, Housing Facilities Division, Concrete and Metal Products Division, Industrial Construction Division, Energy Division, and Trading Division. The projects that were handled at that time consist of: LIPI Building, and Building, and also Irrigation Project.

The establishment of PT Wijaya Karya Realty as a progression of the Realty Division. Subsequently PT Wijaya Karya Intrade was also established as the progression of the Industrial and Commercial Division.

WIKA established Subsidiary of PT Wijaya Karya Gedung that specializes in the construction of high-rise building. WIKA acquired 70.08% shares of PT Catur Insan Pertiwi that specializes in the field of Mechanical Electrical. Then PT Catur Insan Pertiwi was renamed into PT Wijaya Karya Insan Pertiwi.

“Perusahaan Negara Bangunan Widjaja Karja” was changed into “PT Wijaya Karya”. WIKA then developed into a construction contractor by handling various important projects such as the installation of electricity grids at Asahan and the irrigation project of Jatiluhur.

WIKA released its (Initial Public Offering/IPO) on October 29, 2007 at the Indonesia Stock Exchange (known at the time as the Jakarta Stock Exchange). WIKA released 35% of its shares to the public, so that the Government of the Republic Indonesia held 65% while the rest was owned by the public including WIKA employees (after ESA, ESOP and MSOP).

Along with PT Jasa Sarana and PT RMI, established PT Wijaya Karya Jabar Power specializes in the development of Geothermal Power Station (PLTP).

WIKA along with other companies have succeeded in constructing the Suramadu Bridge, a prestigious project that connects Java and Madura islands.

WIKA founded its first Subsidiary company, namely PT Wijaya Karya Beton.

WIKA arranged its 2020 vision in order to face the global change. WIKA intends to become one of the best integrated EPC and Investment Companies in Southeast Asia. This vision is believed to enable and help WIKA to reach a more optimum, healthier, and sustainable growth.


Corporate History

7

2010 2012 20142011 2013 2015

WIKA has defined a new vision, namely the Vision 2020; to become one of the best integrated EPC and Investment Company in Southeast Asia. The vision is believed to be able to provide directions to every WIKA’s line of business to achieve optimum, healthy and sustainable growth.

During 2012, WIKA has successfully completed its power plant projects with total powers consist as follows:

• Turbine Gas Power Plant Borang, 60 MW;

• Engine Gas Power Plant Rengat Ambon, 21 MW;

• Diesel Engine Power Plant Ambon, 34 MW.

WIKA further strengthen itself to be a player in the field of power plant as well as oil and gas through projects it won. With a number of projects abroad, WIKA’ action is increasingly recognized in the international level.

WIKA has obtained investment outcome from the Diesel Power Plant in Bali and further will generate result from the power plant in Ambon, Borang and Rengat.

Subsidiary Restructuring Program was conducted to ensure business growth sustainability in WIKA Realty, WIKA Insan Pertiwi, and WIKA Intrade.

Diesel Engine Power Plant Bali, 50 MW.

• Established joint venture company of PT Prima Terminal Peti Kemas with PT Pelindo I (Persero) and PT Hutama Karya (Persero)

• WIKA performed an acquisition of PT. Sarana Karya (Persero) (“SAKA”) formerly owned by Government of the Republic of Indonesia

• Through Company’s subsidiary company WIKA BETON established joint venture company PT WIKA Kobe and PT WIKA Krakatau Beton

• Share buyback with total 6.018.500 shares at Rp1,706.77 per share on average.

WIKA worked on large scale infrastructure project, which is Mass Rapid Transportation (MRT) in Jakarta and assigned to work on High Speed Railway Jakarta – Bandung.



MESSAGEFROM CEO

Company views the year of 2016 positively, in line with the economics growth targeted by the Government of Indonesia.


Message from Director

9

Though loaded with optimism as the momentum of the rise of infrastructure, the year of 2015 was called the turbulent year, and uncertainty by a number of agencies and international media, even some called it the year of crisis. The global economy experienced a slowdown due to the impact of stimulus withdrawal and monetary tightening plans caused by the increasing interest rate of American Central Bank (The Fed). Meanwhile, China as a big country that was expected to be one of motors of global economic growth has slowed as well in its economic growth, to about 7% of the usual double digit in the previous years. This condition affected Indonesia’s macro-economic throughout 2015 where economic growth was recorded at 4.79%, slower than economic growth in 2014 at 5.02%.

The acceleration of economic growth in the fourth quarter was supported by government spending on infrastructure projects that increase 41.3% compare to the third quarter. It can be said that acceleration of economic growth in the fourth quarter was to spark a positive interest of an investment situation in the country. Such conducive conditions could be a benefit for WIKA during 2015. During the year of 2015 WIKA was able to generate Income Attributable to Parent Entity Owner of USD48.08 million, increase 2.78% in 2014 of which the amount was worth USD46.78 million.

WIKA has established itself in investing on power plant sector, including Engine Gas Power Plant Rengat, Diesel Engine Power Plant Bali, Diesel Engine Power Plant Ambon, Turbine Gas Power Plant Borang and Engine Gas Power Plant Rawa Minyak. As one of the leaders in the development of infrastructure in the year of 2015 WIKA was trusted to realize the government’s long-term vision in the modernization of national transport system, namely the construction of Mass Rapid Transit (MRT) and High Speed Railway (HSR) Jakarta-Bandung.

Other than its role as a project operator, management agreed that WIKA could develops/ invest. The Company also conducted corporate actions through acquisitions and investments in several companies, such as PT Prima Terminal Peti Kemas, PT WIKA Realty, PT Marga Nujyasumo Agung, etc. This investment decision was aimed to expand WIKA’s business and to support the acceleration of development that planned by the government.

The Company positively views the year of 2016 in line with the economic growth target of 5.3%, driven by household consumption and also government’s spending, particularly for infrastructures where WIKA takes part in it as well as from private investment. Even though the global economic is still covered by uncertainty, the world economic growth in 2016 is believed to be better than 2015.

This year, the Company targets to obtain new contracts in total of USD1.94 billion. The growth of new contracts is in line with the implementation of HSR Jakarta-Bandung Project. The presence of this project and the continuous Transit Oriented Development (TOD) which will be conducted by Wika Realty. With TOD, local economies which are passed by the high-speed railway Jakarta- Bandung project will grow and develop. Aside from business center, the area will be the center of residences, government, education and tourism that are considered attractive to the public.

Several major projects are planned to be completed in 2016, including the Pak Kasih Tayan Bridge, the longest bridge in Kalimantan. This bridge will connect West Kalimantan and Central Kalimantan through Tayan Village and Piasak Village in Sanggau. The total length of the bridges with additional access is 5.3 km while the body reaches the length of 1.42 km. WIKA in cooperation with the China Road and Bridge Corporation has been working on this project since 2012.

This year, the opening of WIKA’s branch office in Saudi Arabia has been completed. Therefore, the opportunity for the Company to get the work contract in Middle East is widely opened. Several countries are expected to open the opportunities for WIKA are Malaysia, Algeria, Timor Leste and Philippines.

Bintang Perbowo, SE, MMPresident Director



FINANCIALHIGHLIGHTS

Description 2011 2012

Financial Position (Expressed in USD, unless otherwise stated)

Total Assets 644,236,682 847,751,400

Total Liabilities 473,350,104 629,728,411

Total Equity 170,886,579 218,022,989

Result of Operations (Expressed in USD, unless otherwise stated)

Net Sales 599,109,084 761,939,567

Operating Income 50,806,715 66,923,474

Net Income 30,628,909 40,251,429

Income Attributable to:

Parent Entity Owner 27,269,138 36,615,487

Non Controlling Interest 2,803,669 3,635,943

Total 30,072,807 40,251,430

Financial indicator

Return on Equity (%) 17,11 18,35

Cash Ratio (%) 24,27 23,28

Collection Period (days) 62,38 49,67

Debt to Equity Ratio (%) 2,95 3,16

Operating Income Margin (%) 8,44 8,78

Net Income Margin (%) 4,58 4,81

Earning per Share (iDr/share) 60,59 77,96

Number of Employees (persons) 1,398 1,619

WIKA and Subsidiaries Consolidated Statement of Financial Position as of December 31, 2015

Net Sales Income Attributable to Parent Entity OwnerOperating Income

2015 201520152014 201420142013 201320132012 201220122011 20112011

(in million USD) (in million USD)(in million USD)

599 27

51

76237

67

914 4494

959 47108 1,048 48116


Financial Highlights

11

2013 2014 2015

968,843,285 1,223,786,135 1,507,877,387

720,615,679 848,651,155 1,089,561,897

248,227,606 375,134,980 418,315,490

914,205,196 958,708,945 1,047,700,109

93,535,532 107,806,028 116,454,257

48,028,590 57,213,008 54,077,312

43,841,535 46,781,131 48,080,300

4,187,055 10,431,877 5,997,011

48,028,590 57,213,008 54,077,312

19,33 15.64 14.29

19,00 27.15 24.16

45,37 57,48 74.55

3,18 2.84 3.24

10,20 11,24 11.12

4,80 4.88 4.59

92,84 99.06 101.81

1,809 1,912 2,069

Total Assets Total Liability Total Equity

2015 2015 20152014 2014 20142013 2013 20132012 2012 20122011 2011 2011

(in million USD) (in million USD) (in million USD)

* Exchange rate assumption Rp13,000 per US Dollar

644 473171

848 630

218

969 721

248

1,224849 375

1,5081,089

418



BUSINESSPILLARS

INDUSTRY INVESTMENTINFRASTRUCTURE &BUILDING

ENERGY &INDUSTRIAL PLANT

REALTY &PROPERTY

PRECAST CONCRETE CIVIL CONSTRUCTION REALTY & PROPERTY ENERGY

WATER ENVIRONMENT

TRANSPORTATIONINFRASTRUCTURE

PROPERTYMANAGEMENT

EPC

BUILDING CONSTRUCTION OPERATION & MAINTENANCE

STEEL CONSTRUCTION

INDUSTRIAL FACILITIES

BITUMEN

- Precast Concrete Product- Natural Resource Management

- Road & Bridge- Seaport, Jetty- Dam & Barrage

- Landed House- Highrise (Apartment, Condotel, Office Mix Use)- Industrial Estate

- Oil & Gas Plant- Petrochemical Plant- Cement Plant, Power Plant- Mining, Biofuels, Fertilizer

- Residential & Commercial- Airport- Facility

- Power Plant- Industrial Equipment

- Erection- Equipment Installation

- Steel Fabrication- Alumunium Casting- Plastic Injection

- Granular Asphalt- Extraction Asphalt

Civil Work DepartmentOverseas DepartmentBuilding Department

Industrial Plant DepartmentEnergy & Power Department

Building Department Energy & Power Department

PT CITRA LAUTAN TEDUH


PT Wijaya Karya (Persero) Tbk 13

BUSINESSPORTFOLIO

62.71%

51%

20%

50%

40% 14% 0.14%10.23%

100%

99% 85.41% 90.04% 96.05% 99%

Transportation Infrastructure

Subsidiaries

Investment in Associates

Water & Environment Industrial PlantRenewable EnergyEnergy

Toll Road Sea Port

Railway

2.1% 15%

38%

0.4%

20%

25%

65.05% 34.95%

Government ofthe Republic of Indonesia

Public

PT CITRA LAUTAN TEDUH

WIKA’S ABILITY TO MAINTAIN A POSITIVE PERFORMANCE IN SUCH SITUATION COULD NOT BE SEPARATED FROM THE MANAGEMENT’S SUCCESS IN WORKING CLOSELY WITH ALL STAFF TO BE PREPARED TO DEAL WITH AN UNFORTUNATE SITUATION AND HAS KEEN EYES TO CAPTURE EVERY OPPORTUNITY.



INFRASTRUCTURE &BUILDINGS

1. Pelindo Learning Center Project, Ciawai2. Merah Putih Bridge, Ambon3. Installation of Cutter Head of MRT Machine, Jakarta

Infrastructure & Building segment posted Net Income for USD18.48 million, an increase of

compared to 2014, which amounted to USD14.88 million.

WIKA’s Key Competence represented by two business pillars: Infrastructure & Building, Energy & Industrial Plant. Infrastructure & Building consists of Civil Construction, Building Construction and Steel Construction. Civil Construction, managed by Operating Department and Subsidiaries that consists of sub-fields: roads, bridges, irrigations, transportation infrastructures and workforces. Building Construction, managed by the Building Department for the markets of government and SOEs, while private markets are managed by subsidiary namely WIKA Gedung. The sub area of construction field includes buildings for living such as apartments, condominiums, hotel, flats, and residential buildings. Steel Construction, since 2009 has been improved from supporting manufacturing facilities into sub areas that can manage their own business activities, ranging from marketing, production, and delivery with large product ranges

Net Sales


USD

USD

billion

million

24.18%

1.47

18.18

Industry


During 2015 Infrastructure and Building segment succeeded in obtaining new contracts worth USD1.47 billion, an increase of 94.33% over the achievement on 2014 at USD755.13 million. In 2015 it obtained significant increase in revenue. Net sales gained in 2015 amounted to USD488.94 million. This amount increase significantly of 32.44% compared to 2014 with amounted to USD369.19 million. Net income obtained by this segment during 2015 amounted to USD18.48 million. This figure rose significantly by 24.18% in the achievement of the year 2014 of USD14.88 million. Income attributable to parent entity owner increased to USD18.18 million compared to the year before was USD14.83 million, or increase of 22.56%.

3

21



ENERGY &INDUSTRIAL PLANT

EPC (Engineering, Procurement & Construction), The scope of works include basic engineering, engineering process, detailed engineering, procurement related with equipment procurement, and construction or construction implementation of the planned projects. Number of EPC projects that are carried out includes: Oil & Gas Plant,Petrochemical Plant, Cement Plant, Power Plant, Mining, Biofuels, and Fertilizer Operation & Maintenance conducts operation and maintenance of power plants as well as industrial supplies and including investment in the electricity sector of which the majority of the funding and operation are controlled by the company. During 2015, Energy and Industrial Plant Segment gained new contracts worth USD79.57 million, decrease 71.53% compared to new contract gained in 2014 of USD279.52 million.

Net Sales


1

USD

USD

million

million

274.90

16.85

Infrastructure & Building


1. Bali Diesel Power Plant Project2. Cilacap Hydro Power Plant Project3. Matindok Gas Development Project

WIKA’s revenue in Pillar of Energy & Industrial Plant in the year of 2015 obtained good result. Net sales from this segment in 2015 amounted to USD274.90 million, an increase of 12.03% compared to the year 2014 with amounted to USD245.37 million. Net Income from sales in 2015 amounted to USD16.95 million, an increase of 131.94% compared to 2014 which amounted to USD7.31 million. Income attributable to parent entity owner increased by 132.47% from USD16.85 million in 2014 to USD7.25 million in 2015.

3

2

Net Income from sales in 2015 amounted to USD16.95 million an increase of


131.94%



INDUSTRY

1. WIKA Beton Factory, Karawang2. WIKA Kobe Factory, Cileungsi - Bogor3. WIKA Bitumen Site

As a supporter of core competencies, WIKA’s industrial manufactures pillar, a variety of products supporting the construction activities such as: Precast Concrete, Industrial Facilities and products of energy conversion and mining industries This Business Pillar is managed by: WIKA Beton, WIKA Kobe, WIKA Krakatau Beton, PT Citra LautanTeduh, WIKA Industri & Konstruksi, and WIKA Bitumen. During 2015 Industry segment succeeded in obtaining new contracts worth USD287.23 million or an increase of 32.06% over the acquisition of new contracts in 2014 which amounted to USD217.51 million.

Net Sales


USD

USD

million

million

227.91

7.45

Industry segment posted New Order Book for USD287.23 million, an increase of


32.06%

Energy & Industrial Plant


Net sales from this segment in 2015 amounted to USD227.91 million, a decrease of 16.68% compared to the year 2014 with amounted to USD273.52 million. Net Income from sales in 2015 amounted to USD12.09 million, decreased 52.97% compared to 2014 which amounted USD25.72 million. And income attributable to parent entity owner decreased to USD7.45 million in 2015 or decrease 55.56% compared with the previous year amounted USD16.76 million.

3

21

REALTY &PROPERTY



WIKA’s FORWARD Strategy is represented by two pillars: Realty and Property and Investment. Realty & Property is engaged in realty business, property services and services such as cultivation of landed house, high-rise (apartment, condotel, and office mixed use), and industrial estate. Meanwhile in the Property Management WIKA also manages the use of the property. This pillar is also working on building facilities such as hospitals, airport passenger terminals and stations, educational facilities, sports facilities, offices, shopping malls and other recreational facilities. During 2015, Realty and Property segment succeeded in obtaining new contracts worth USD105.87 million, increase 1.65% compared with contracts obtained in 2014 of USD104.15 million.

1

Net Sales


USD

USD

million

million

110.45

5.60

Realty & Property


1. Tamansari Lagoon, Manado2. Puncak Kertajaya Apartement Project,

Surabaya3. Tamansari Majapahit, Semarang

Net sales gained in 2015 amounted USD110.45 million. This amount increased 10.43% compared to 2014 which amounted to USD100.03 million. Net income from sales in 2015 amounted to USD6.55 million, decreased 29.59% from the previous year which amounted to USD9.31 million. And income attributable to parent entity owner decreased to USD5.60 million in 2015, compared with previous year amounted to USD7.93 million, or decreased 29.47%.

3

2

Net Sales in 2015 amounted to USD110.45 million an increase of


10.43%



WIKA has continuously growing and brought consequences to the Company to implement human resource management as human capital. The implementation of human capital management will support the achievement of the company’s vision to become the best company in engineering, procurement, and construction or EPC as well as investment in the Southeast Asia.

The implementations of human capital management become crucial matters as the presence of employees have a strategic function for WIKA. Indefinitely, employees’ welfare, developmental program as well as procurement educational training also implemented along with human capital. In implementation of human capital management, employment management done by using dignity concept as employees regarded as company asset. By appointing dignity of the employees, it means the company values the individual as a whole human being, that is their physically/ material as well as their psychological/immaterial being. This concept is believed to make individuals feel appreciated, happiness, have passion in working and connection to the company, which will lead to high work performance.

Along with higher work performance, the company keeps on strengthening the implementation of human capital management. Several actions have already been done throughout the reporting period, among others:1. Organisational research; organisational review to adjust WIKA business development and

long-term direction plan.2. Recruitments of new employees.3. Development program to create successful associate with Advance Leadership Program

(ALP) and Executive Development Program (PPE).4. Established WIKASTRIAN, a Leadership Training Centre based on local wisdom.

HUMANCAPITAL

The implementation of human capital management shall be crucial as the employee existence gives strategic function to WIKA.

Human Capital


5. Research on generation gap in the company, characteristic identification “Generation Y” and followed by forming program to answer generation gap characteristic.

6. Implemented excellence service concept to employees by using “care and speed” motto, paying attention to employees’ need, and giving fast service.

Dignifying someone as a whole person is believed to boost a sense of appreciation, a sense of happiness, working spirit, engagement with the Company, and finally generating the excellent performance.



WIKA sees each employee as “human capital” that is the main capital in the company. Each employee is the investor for the company, which is expected to invest all their competence to the company.

HUMAN CAPITAL MANAGEMENTWIKA regards its employees as human capital, the primary capital in the company. Every single employee is an investor to the company, as they were expected to invest all of their competencies to the company. WIKA used competencies based human capital and dignity concept to every employee in implementing human capital management to fulfilled a win-win solution on organization as well as individuals needs. The company realizes that human capital holds an important role as business partner, thus set the year 2014 as Human Capital Year.

Human Capital


THE MODEL OF WIKA’S HUMAN CAPITAL MANAGEMENT CAN BE ILLUSTRATED AS FOLLOWS:

COMPETENCY

PEOPLE

DIGNITY

ENGAGEMENT

CULT

URE

LEADERSHIP

SPEED

CARE

RETIREMENT

WIKA VISION & MISSION

TOWARD 2020

WIKA BUSINESS PORTFOLIO STRATEGIC

GOALS GRAND STRATEGY HC STRATEGY BUSINESS

ALIGNMENT

WIKA GOVERNANCE WIKA CULTURE &

VALUES

RESULTS WIKA SCORE CARDS HC SCORE CARDS

BRAND EMPLOYER

TALENT & SUGGESTION

TOTAL REWARD

PERFORMANCE MANAGEMENT

EMPLOYEE RELATIONS

LEARNING & DEVELOPMENT

RECRUITMENT & PLACEMENT

ORGANIZATION DEVELOPMENT



CORPORATESOCIAL RESPONSIBILITY

WIKA’s Corporate Social Responsibility (CSR) is conducted with regard to the needs of stakeholders. Pursuant to the implementation of Law Number.40 of 2007, Chapter V, Article 74 paragraph (1). Aside from that, the implementation of WIKA’s CSR as SOE also refers to the Regulation of Minister of State PER-08/MBU/2013 dated September 10, 2013 regarding the Partnership Program and Community Development (CSR).

WIKA Sustainability Report is a record of activities, strategies, achievements and challenges of CSR in building social values and protecting the environment. This report refers to the guidelines of Global Reporting Initiative (GRI) the 4th version or GRI 4 (G4), complete with special reference regarding some types of constructions and real estate industry.

WIKA believes that through sustainable activities, a harmonized growth in economic, society and environmental can be achieved.

1

3

2

4

Corporate Social Responsibility


In the year 2015, WIKA’s 2014 Sustainability Report has successfully won first prize award on Sustainability Reporting Award in Jakarta. Furthermore, the report was going to the final at the event Asia Sustainability Reporting Award held in Singapore. This achievement shows that we are committed to enhance the quality of sustainability reporting as well as improve the implementation of CSR activities in real life at the same time.

WIKA’s initiatives to continuously enhance the performance of CSR, consist of developing a blueprint CSR that refers to the ISO26000 guidelines. With the CSR blueprint, WIKA hopes that CSR activities will be more focused and able to contribute positively both to all of the stakeholders as well as to the Company.

WIKA performs partnership in several coached villages. In one of the villages located in the district of Pamijahan, WIKA planted Sengon trees that has grown with lush. Upon this endeavor, in 2015, WIKA achieved carbon dioxide capture and sequestration amounting to 1545965.58 tCO2e (tonnes of carbon dioxide equivalent). In addition to reducing the emissions, tree planting is also useful to improve environmental quality, especially reforestation area on the critical site of Pamijahan.

PEOPLE

COMMUNITYEMPOWERMENT

ENVIRONMENT

EDUCATION HEALTH

PROFIT

PLANETLabour Pratices Human Right Community Involvement & Development

Fair Operating Practices Corporate

Governance Consumer Issues

The Environment

1. Education Support2. Aid of Clean Water and Public Sanitation3. Red Ginger Cultivation as intercrops in

WIKA’s Sengon Forest4. Sengon Forest WIKA, Pamijahan, Bogor

WIKA hopes that CSR activities will be more focused and able to contribute positively both to all of the stakeholders as well as to the Company.



To comply with the applicable law and regulation (obligation and voluntary).

GOOD CORPORATEGOVERNANCE

As a listed State-Owned Enterprises (SOEs) which has established its role on the world stage, WIKA is committed to implement corporate governance principles in the Company’s daily management. All the strategic measures made by the Board of Commissioners and Board of Directors always consider GCG principles: Transparency, Accountability, Responsibility, Independency and Fairness in the interest of shareholders and other stakeholders.

GCG principles are the foundation for achieving the triple bottom line through achieving a healthy and transparent financial performance in addition to the development of superior human capital and its contribution in keeping the environment and natural resources in harmony, as well as sustainable and continuous.

WIKA has adopted the best standards applicable in ASEAN Corporate Governance Scorecard issued by the ASEAN Capital Market Forum since 2012 as well as Indonesia’s GCG guidelines issued by the National Committee on Governance (NCG) in 2006, referring to the criteria and methodology established by the Ministry of State-Owned Enterprises No.SK-16/S.MBU/2012 dated June 6, 2012. Unsurprisingly WIKA managed to be the top 20 issuers Indonesia in ASEAN Corporate Governance Scorecard issued in 2015 by the Indonesian Institute of Corporate Directorship (IICD), this is an increase compared to previous year when WIKA was in top 50.

GCG GGC GCC

GOOD CORPORATE GOVERNANCE

GOOD GOVERNED CORPORATION

GOOD CORPORATE CITIZENWIKA NEXT MISSION

To establish a better ‘internal control’ management especially in effectively handling business risks through suitable risk management.

To attain a position as an ethical and responsible company, also known as good corporate citizen.

“The implementation of GCG principles becomes increasingly important; not only to align the Company’s relationships with stakeholders but also to maximize the Company’s potential to gain sustainable growth“.

Good Corporate Gvernance


COMMITMENT IN GCG IMPLEMENTATIONBy implementing GCG, it means the company obeys the Regulation of Ministry of State Enterprises No. PER 01/MBU/2011 dated 1st August 2011 on Implementation of Good Corporate Governance in state enterprises. The implementation of GCG has positive impact on the internal environment of the company as well as the external environment. The implementation of GCG in state enterprises is expected:1. Optimizing state enterprises value thus the company

have strong competitiveness, nationally and internationally, thus it can maintain its existence and its competitiveness continuously.

2. Encourage state enterprises management professionally, efficiently, and effectively, as well as empower the function and increase the independence of the company organ.

3. Encourage the company organ in making decision and running the action based on high moral value and comply with the legislation, as well as acknowledgement to state-enterprises’ social responsibilities to stakeholders and environment around it.

4. Increase the contribution of state enterprises in national economy.

5. Contribute to favorable climate in national investment development.

THE PURPOSE OF GCG IMPLEMENTATIONAs an open-listed company that administered professionally, WIKA has always try to make the implementation of operational activities run in accordance with prevailing legislation. GCG implementation is an act of obedience to the Regulation of Ministry of State Enterprises No.PER 01/MBU/2011. Company sought GCG as base to the realization of business ethics practices as Good Corporate Citizen, aside from functioning as maintaining company sustainability.

The implementation of Good Corporate Governance gives a positive impact to both internal and external environment in the Company.



The purpose of GCG implementation are:1. Optimizing state enterprises value thus the company have strong competitiveness,

nationally and internationally, therefore it can maintain its existence and its competitiveness continuously

2. Giving certainty and benefits to the company’s stakeholders. Creating balance of company’s interest, in accordance to the company’s values. Increasing credibility and company’s competitiveness.

3. Building company’s positive image. Reinforce the restrictions relating to business ethics.

Summary Valuation Report/Evaluation of Good Corporate Governance Implementation in 2015

No Aspect/Indicator/Parameter Weight2015 Achievement

DescriptionScore Achievement (%)

I Commitment to continuous GCG implementation 7 6.10 87 Very Good

II Shareholders and GMS/capital owner 9 8.23 91 Very Good

III Board of Commissioners/Supervisory Board 35 33.98 97 Very Good

IV Directors 35 32.57 93 Very Good

V Information disclosure and Transparency 9 8.10 90 Very Good

VI Other Aspect 5 4.37 88 Very Good

100 93.35 Very Good

WIKA as a public company with a professional management always striving to implement its operational activities in compliance with the prevailing regulations.

Good Corporate Gvernance


ASSESSMENT OF GCG IMPLEMENTATIONSince 2006, the assessment has been conducted by the Agency Development Finance Controller (BPKP) assessing the compliance of the Board of Commissioners and Board of Directors with regulations and best practice of GCG implementation.1. Test and asses GCG implementation in the company through

elaborating condition and comparing indicator and assessment parameter which has been specified.

2. Give overview of the assessment results through the provision of value on GCG implementation, after recommendation is proposed, in order to reduce the gap between the level of practice with indicators and assessment parameters.

3. Monitoring the consistency of GCG implementation in the company organizational environment, as well as to obtain feedback for the improvement and development of corporate governance policies.

4. Encourage company management to increase professionalism, transparency, and efficiency, as well as empowering the function and increase the independence of company organ.

WIKA’s perspective toward GCG is a basic foundation to create a good business ethics to be a Good Corporate Citizen and to create a company’s sustainability.

AWARD &CERTIFICATION



CERTIFICATION

AWARD

SO 14001:2004 / SNI 19 - 14001:2005

WARTA EKONOMI - SOCIAL BUSINESS INNOVATION AWARD 2015

WARTA EKONOMI - INDONESIA LIVING LEGEND COMPANY 2015

WARTA EKONOMI - MOST POWERFUL & VALUABLE COMPANY AWARD 2014

AUDIT CERTIFICATE MANAGEMENT SYSTEM

WARTA EKONOMI - INDONESIA MOST ADMIRED CEO 2015

Environmental Management System Certificate

Category Building Construction. Jakarta - August 25, 2015

Category Construction Company. Jakarta - June 11, 2015

Category Integrated Infrastructure and Construction (Property) Company. Jakarta - November 26, 2014

Self Manage Security Management System Based on Chief of Indonesian National Police Regulation No.24/2007

Bintang Perbowo as Indonesia Most Admired CEO 2015. Jakarta - December 7, 2015

Award & Certification


ALPHA SOUTHEAST ASIA - SOUTH EAST ASIA INSTUNATIONAL INVESTOR CORPORATE AWARDS (INDONESIA) 2015

SRA - SUSTAINABILITY REPORTING AWARD 2015

InMA - Indonesia Inhouse Magazine Awards 2015

OHSAS 18001:2007 SNI ISO 9001:2008

FORBES INDONESIA -BEST OF THE BEST AWARD 2015

Best Senior Management IR Support and Most Improved Investor Relation in 2015. Jakarta - November 25, 2015

Best Sustainability Report 2015 Category Infrastructure. Jakarta, November 25, 2015

Gold Winner category The Best of State-Owned Enterprise inhouse Magaziine InMA 2015 diberikan kepada WIKA MAGZ Edition: No.24/2014. Batam - February 7, 2015

Occupational Health and Safety Management System Certificate

Quality Management System Certificate

The Top 50 Companies for 2015. Jakarta - November, 25 2015

BOARD OFDIRECTORS



1 2Bintang Perbowo, SE, MMPresident Director

Ir. Gandira Gutawa, MMDirector of Operation I

Indonesian citizen, born in Jakarta on February 15, 1954. He has served as Director since May 25, 2013 and re-elected as Director since April 22, 2015 based on the decision of the Annual General Meeting in 2015. Previously, he has served as Managing Director for the period 2008-2013. Previously, he served as Finance Director of PT Pembangunan Perumahan (Persero) from 1999 to 2008 and has other important positions within the same company.

He holds a Master in International Management from the Prasetya Mulya Business School in 2007 and a Bachelor degree in Economics from the University of Krisnadwipayama, Jakarta in 1990.

Indonesian citizen, born in Jakarta on May 7, 1961. He has been a Director of PT Wijaya Karya (Persero) Tbk. since April 22, 2015 by the Annual General Meeting in 2015. Previously, he held important positions in the Operations Department is General Manager at the Ministry of Civil Works I (2014), had served as Lampung Bekri Irrigation Project Manager and in 2004 to 2007 was appointed General Manager of the Civil Division I.

He holds a Master of Management Department of the University of Indonesia in 2000 and a degree in Civil Engineering Department of Bandung Institute of Technology, Bandung in 1985.

WIKA continues to grow, explore and create new things is an englightment that builds the future of nation.

1 62 345

Board of Directors


3

5

4

6

Ir. Bambang Pramujo, MTDirector of Operation II

I Gusti Ngurah Askhara Danadiputra, SE, MMDirector of Human Capital & Business Development

Ir. Destiawan Soewardjono, MBADirector of Operation III

Antonius N.S. Kosasih, SE, MMDirector of Finance

Indonesian citizen, born in Wonogiri June 13, 1957. He served as Director of Operations of PT Wijaya Karya (Persero) Tbk since the date of May 25, 2013 to the present. In addition, he also served as President Commissioner of PT Rekayasa Konstruksi since 2013. His career at PT Wijaya Karya (Persero) Tbk started since 1984 and has held several important positions in the Company and its subsidiaries, including: Commissioner of PT WIKA Insan Pertiwi (July -Oct 2013) and President Commissioner of PT Marga Nujyasumo Agung (MNA).

He holds a Master in Civil Engineering from the University of Indonesia in 1999, and the degree in Civil Engineering from Universitas Sebelas Maret, Surakarta in 1982.

Indonesian citizen, born in Jakarta on October 13, 1971, He has been appointed as Director since April 28, 2016. Previously, he served as Finance Director of PT Garuda Indonesia in 2014-2015 periods. He is the Financial Director of PT Pelabuhan Indonesia III (Persero) in 2014 and has other important positions in PT ANZ Bank Indonesia as Head of Naturan Resources Group and SOE.

He holds a Master degree in International Finance from Universitas Indonesia and holds his Bachelor Degree in Economics from Universitas Gadjah Mada.

He Indonesian citizen, born in Surabaya on April 10, 1961. He has been Director of Operations III PT Wijaya Karya (Persero) Tbk. since March 27, 2014 and the corresponding results of the Annual General Meeting on April 22, 2015 re-elected as Director of the Company. His career in PT Wijaya Karya (Persero) Tbk since 1988. The important operational positions in other WIKA ever he held was as the General Manager of the Division of Foreign Affairs (2012-2013). Until now, he still served as a Commissioner at the subsidiary WIKA Beton.

He holds an Engineering degree from the Department of Civil Engineering at the University of Brawijaya, Malang in 1987, and holds a Master of Management from Gajah Mada University, Yogyakarta in 2008.

Indonesian citizen, born in Jakarta on July 12, 1970, He has been appointed as Director since April 28, 2016. Previously, he served as President Director of PT Transportasi Jakarta (Transjakarta) in 2014-2015 periods and Finance Director of Perum Perhutani in 2011-2012.

He holds a Master degree in Finance and Investment from IPMI and holds his Bachelor Degree in Economics from Universitas Gadjah Mada.

QUALITY SECURITYSAFETY HEALTH ENVIRONMENT



WIKA’s policies are distributed by the top management to its employees in order to support work productivity with zero accident, efficient use of resources and prevention of environmental incident.

3

1. Matindok Gas Development Project2. Safety Morning Brief - Railways

Electrification and Double Tracking of Java Main Line Project

3. Cileunyi - Sumedang - Dawuan Toll Road Project

Quality Security Safety Health Environment


WIKA’S POLICY FOR THE QUALITY CONTROL, RISK AND SAFETY MANAGEMENT SYSTEMWIKA has developed an integrated policy covering the management system of Quality Control, Risk and Safety within PT Wijaya Karya (Persero), Tbk. Such policy is issued by the top management to its employees so that every individual in the company can continuously develop and perform their jobs productively, in order to support their business units, as well as the entire WIKA companies in achieving the work objectives.

Customers as stipulated by this policy include not only those who useWIKA’s services, but also include anyone who has connections to WIKA. This needs to always be reviewed by the top management periodically.

WIKA QSSHE POLICYThe WIKA QSSHE Policy has been made separated from other policies in order to emphasize WIKA’s solid commitment that was issued by the top management to its employees, that is to avoid work related accident and illness, and to avoid environment pollution in accordance with each line of work. This Policy is inline with WIKA’s objectives of zero accident, efficient use of resources, and prevention of environment incident.

1 2

WIKA implements core values of the company known as CIBERTI (Commitment, Innovation, Balance, Excellence, Relationship, Teamwork).

STOCKINFORMATION



Since the Company listed its shares for the first time in October 29, 2007 with the agreement of parliament No.KD.01/3406/DPRRI/2007 dated April 26, 2007 and Extraordinary General Meeting of Shareholders No.RIS 15/D2.MBU/2007 which is held in June 14, 2007, and also based on approval letter from Ministry of State Owned Enterprise No. F-717/ MBU/2007, dated October 8, 2007 regarding the approval for Employee Stock Allocation (ESA) and Employee Stock Option Plan & Management Stock Option Plan (ESOP/MSOP), PT Wijaya Karya has its own stock code named WIKA.

The total shares owned by WIKA as December 30, 2015 is counted as 6,149,225,000 shares. Those shares consist of Government owned shares as 65.05%, local investors as 18.68%, foreign investors as 15.18% and employees as 1.09%. During 2015, the highest stock price of WIKA has been achieved on 1st Quarter at Rp3,495 and the lowest price occured on 2nd Quarter at Rp2,480. At the end of 2015, total market capitalization amounted at Rp1.25 trillion.

Shareholders Composition

Shareholders 2010 2011 2012 2013 2014 2015

Government 68.42% 66.65% 66.37% 68.42% 65.05% 65.05%

Employee 2.98% 3.03% 2.02% 1.60% 1.23% 1.09%

Public

Foreign Investors 1.78% 11.97% 14.38% 14.45% 18.13% 15.18%

Local Investors 26.82% 18.35% 17.23% 18.80% 15.59% 18.68%

Stock exchange listing

Industry

Stock Code (Reuters)

Trading unit

Market Capital (as of Dec 31st, 2014)

Number of shareholders

: Indonesia Stock Exchange

: Engineering & Construction Services

: WIKA.JK

: Share

: USD1,248,765,692

: 6,149,225,000

Basic Information

WIKA is committed to the stakeholders by continuously innovating in order to achieve a better performance in all aspects.

Stock Information


Government

Employees

Public (Foreign)

Public (Local)

Shareholders Composition

65.05%

1.09%

15.18%

18.68%

Total Outstanding Shareas December 30, 2015

6.149.225.00

DEVIDEN POLICYWIKA became a public company in 29 October 2007. The Company continuously strives to fulfill the rights of the shareholders and yet placing attention on Company’s financial condition. The Company’s decision on dividend payout is based upon, among others, the net income earned during the fiscal year, the Company’s obligation to allocate reserve funds in conformity with applicable rules and the Company’s financial condition. In addition, the Company also considers future growth and expansion plans in the stipulation of dividend sharing.

Since going public in 2007, the Company has placed dividend payout to all shareholders in 4 (four) occasions as follows:• On May 15, 2008 the Annual General Meeting of

Shareholders (AGM) stipulated the first dividend payout, at 30% of WIKA’s net income in fiscal year 2007 or equal to USD2.86 million.

• On the second year after going public, WIKA’s dividend payment was based on the stipulation of AGM on May 28th 2009, at 30% of WIKA ‘s net income in fiscal year 2008 of USD3.73 million.

• On the third year, WIKA paid dividend based on the stipulation of AGM on April 29th 2010, at 30% of WIKA‘s Net Income in fiscal year 2009 or USD4.66 million.

• On the fourth year, WIKA paid dividend based on the stipulation of AGM on May 12th 2011, WIKA increased its Dividend Payout ratio to 35% of WIKA’s net income in fiscal year 2010 in the amount of USD8.18 million.

• On the fifth year, WIKA paid dividend based on the stipulation of AGM on May 1st 2012, WIKA increased its Dividend Payout ratio to 35% of WIKA’s net income in fiscal year 2011 in the amount of USD8.73 million.

• On the sixth year, WIKA paid dividend based on the stipulation of AGM on April 25th 2013, at 30% of WIKA’s net income in fiscal year 2012 in the amount of USD11.27 million.

• On the seventh year, WIKA paid dividend based on the stipulation of AGM on March 27th 2014, at 30% of WIKA’s net profit of fiscal year 2013 which amounted to USD13.95 million.

• On the eight year, WIKA paid dividend based on the stipulation of AGM on April 24th 2015, at 20% of WIKA’s net profit of fiscal year 2014 which amounted to USD9.46 million.

WIKA TOWERJl. D.I. Panjaitan Kav. 10 Jakarta 13340, Indonesia

+62 21 819 2808+62 21 850 8640+62 21 850 8650+62 21 819 [email protected]

P.

F.E.W.

Date post:	15-Apr-2018
Category:	Documents
Upload:	truongque
View:	224 times
Download:	2 times

CORPORATE REPORT 2015 - PT Wijaya Karya … Report 2015 2 PT Wiaya Karya Persero Tb PT WIJAYA KARYA...

Documents