Investor Relations

To our Shareholders and Stakeholders,

As the President Director, let me take this honor to represent WIKA BETON’s Board of Directors in conveying our 2022 Annual Report. This year had its highlight on our resilience in facing the remaining pandemic conditions and the global domino effect from Russia’s military aggression against Ukraine. How grateful we are to manage a steady stride and positive achievements despite these conditions.

Year by year, WIKA BETON is eager grow better. This determination is carried out hand in hand and with the commitment of all elements.

Global and National Economic Development

As we all know, February 24, 2022 marked the day for Russian invasion of Ukraine. This aggression, followed by blockades and economic sanctions from global financial institutions, had its butterfly effect on the world economic system. The war between the two world’s giant countries has pushed the world oil prices to a level above USD100 per barrel, the highest since 2014. This conflict has also pushed commodity prices and hampered the distribution of food raw materials throughout the world, thereby resulted in global inflation. It was also affected the financial markets due to the economic sanctions imposed by the United States and other countries on Russia. Various countries, particularly the developing ones, were then faced with exchange rate threats, fluctuations in the share prices, and rising inflation due to shocks from commodity markets.

Broadly speaking, the International Monetary Fund (IMF) in their World Economic Outlook January 2023 edition, reported that the world economy only grew by 3.4% or decreased significantly from 6.4% in 2021 (year on year). This figure was recorded as the weakest growth profile since 2001, exclude the global financial crisis and the acute phase of the COVID-19 pandemic.

As part of the global economic community, Indonesia was greatly affected by this conflict. Despite the reasonable portion of Indonesia’s commodity trade with Russia and Ukraine, those are deemed significant, such as crude palm oil (CPO) and its derivative products. Another moderate impact on Indonesia was the increase in global energy prices, particularly oil and gas. It pushed Indonesia’s fiscal condition due to the excess burden of subsidies, specifically for the use of fuel and LPG. The government was also forced to swallow a bitter pill and decided to revoke the fuel subsidies which resulted in the increased cost of transportation, logistics and other commodity prices.

Despite those challenging global macroeconomic conditions, Indonesia mantained its resilience through conducive government policy and synergy. Through policies in the macroeconomic, microeconomic, macroprudential and microprudential sectors, Indonesia managed to contain global hyperinflation.

It was as reflected in the Rupiah exchange rate, slightly depreciated than the currencies of other Asian countries, such as China at 8.96% (ytd) and India at 10.24% (ytd). To maintain the inflation rate and macroeconomic stability, Bank Indonesia strengthened the Rupiah exchange rate stabilization policy with various responses. As a result, core inflation decreased to 3.30% (yoy) and was maintained at around 3.0±1%.

As of the end of 2022, Bank Indonesia reported various indicators and survey results that put hopes to economic recovery. This was supported by increased private consumption and non-construction investment, strong export value, and maintained public purchasing power. The recovering national economy was also reflected in the performance of the primary business sectors, such as Trade, Mining, and Agriculture. By the end of 2022, Bank Indonesia recorded an annual growth rate close to 4.5%-5.3%.

Development of the National Construction and Concrete Industry

Based on the Indonesian Economic Growth Report for the Fourth Quarter of 2022 released by the Central Bureau of Statistics (BPS), the construction business sector recorded a growth of 2.01% or lower than 2.81% in the previous year. With this growth, the construction industry contributed 9.77% to total GDP.

This downward adjustment was mainly due to the constraints that occurred in the construction industry, such as higher raw material prices and supply chain disruptions in the first quarter of 2022. The COVID-19 pandemic which has been going on for three years remains as the major issue for construction sector. It caused difficulties for contractors to hire certified and competent personnel. Another challenge for construction industry was caused by the escalated global geopolitics and the world economic situation which has not fully recovered. It caused fluctuating prices and inadequate ease of doing business.

WIKA BETON’s Performance Analysis in 2022

Despite such challenging conditions, WIKA BETON continues to actualize its commitment to excellent performance. As of the fourth quarter of 2022, the Company recorded a positive performance as reflected in the amount of net profit at Rp171.06 billion, increased by 110.06% compared to Rp81.43 billion in the previous year. This growth was supported by operating income at Rp6.00 trillion or grew by 34.64% compared to Rp4.46 trillion in last year’s period. Meanwhile, the acquisition of new contracts as of December 2022 was recorded at Rp7.01 trillion, up 34.55% compared to Rp5.21 trillion in 2021. The new contracts comprise of 58.15% private sector, 26.72% WIKA, 13.13% SOE, and 2.00% government.

As of December 2022, WIKA BETON’s performance is supported by numerous projects. Among them are the East Ancol-Pluit Toll Road project, Power Distribution Network, Semarang–Demak Toll Road, Manyar Smelter Project, FRC IK Karawang Pindo 4 Mill, Lotte Line Cilegon Project, IndrapuraKisaran Toll Road, Makassar New Port Access Toll Road, Enhancement of Medan Labuhan-Rantau Parapat Railway Line, Installation of Jatiluhur SPAM Pipes, and various other projects. Based on business sector, the composition compries of 65.98% infrastructure, 16.58% property, followed by energy, industrial and mining sectors which contributed 11.95%, 3.11% and 2.38% respectively.

The Implementation of Strategies and Strategic Policies

At the beginning of the year, the Board of Directors and the Company’s management have formulated the 2022 Corporate Strategy derived from a thorough analysis on assumptions and projections. This strategy includes carefully formulated operational and financial performance plans and targets.

In practice, by adjusting to existing external and internal conditions, the Board of Directors underlines the 2022, strategic policies, as follows:

  1. Developing the market by implementing cost leadership & creating projects, increasing synergies with WIKA Group, optimizing digital marketing, and penetrating the ASEAN market;
  2. Optimizing factories & readymix concrete production capacity, strengthening non-precast product sales, and speeding up product delivery to customers;
  3. Business realignment and development by advancing mobile plants, optimizing existing factories, and realigning subsidiaries’ businesses;
  4. Optimizing business capital, one of which is by accelerating the disbursement and settlement of receivables;
  5. Increasing competence and optimizing the number of Human Capital (HC) by integrating information technology (IT) systems and implementing supply chain management.

The Board of Directors strictly oversees the implementation of these strategies, with due regards to our respective duties, authorities and responsibilities. The Board of Directors also regularly evaluates the implementation of strategies through intensive meeting and discussion mechanisms, in order to ensure its relevance to the current conditions.

Comparison Between Target and Realization

If we compare the target achievement of net income as of December 31, 2022 against the 2022 RKAP, the Company managed to achieve 113.50% of the target set at the beginning of the year. This performance is reflected through the realization of the New Contract target in 2022 of Rp7.01 trillion or 92.11% of the target set at Rp7.61 trillion. The achievement of several main indicators showed a significant increase compared to the previous year’s target and realization. The details of these achievements are as follows:

  1. The New Contract 2022 achieved at Rp7.01 trillion or 92.11% of the 2022 RKAP target set at Rp7.61 trillion. New contracts 2022 comprises of 26.72% PT Wijaya Karya (Persero) Tbk, 13.13% State-Owned Enterprises, 2% Government, and 58.15% private sector.
  2. Sales in 2022 achieved at Rp6.00 trillion, or 88.63% of the 2022 RKAP target set at Rp6.77 trillion.
  3. Gross profit achieved at Rp517.16 billion, or 105.48% of the 2022 RKAP target set at Rp490.27 billion.
  4. Net profit achieved at Rp171.06 billion, or 113.50% of the 2022 RKAP target set at Rp150.71 billion.

These achievements reflect the Company’s performance improvement compared to the previous year. Hence, the Company’s financial ratios at the end of 2022 were recorded positive. The net profit margin was recorded at 2.85% of the 2022 RKAP target that had been set at 2,23%.

In conclusion, the Company’s health level was predicated “HEALTHY A” or higher than the 2022 RKAP target set at 73.5 This assessment is based on the criteria set by the Minister of SOE Decree No. KEP- 100/MBU/2002 dated June 4, 2002 concerning the Soundness Level of State Owned Enterprises.

Obstacles/Challenges Faced and Steps to Completion

In 2022, WIKA BETON faced several major challenges that demand the Company’s adaptability. This is mainly related to the high inflation and interest rates which affect the increase in material prices. First, in March-April as the effect of Ukraine and Russia war which pushed the price of steel and asphalt materials. The second is related to the Government’s decision to increase fuel prices.

To deal with these challenges, the Company carried out several measures to mitigate the decline in profits. First, implementing efficiency in all business lines, particularly the Cost of Goods Sold (HPP). Also, in terms of operating costs, the Company saved costs by cutting non-mandatory budgets. And the third strategy was restructuring accounts receivable by accelerating liquidations, particularly for bad debts. Through this effort, the cash flows encourage faster repayment of bank loans so that the risk of rising interest rates can be minimized.

In terms of productivity, the Company faced challenges from uncertain conditions which resulted in the lower contract turnover target and optimization of HC productivity in the field. To solve it, the Company always ensures its human capital in the field are the best talents who always prioritize quality in carrying out their duties and responsibilities. Thus, production productivity and man hour in each factory are optimized to optimum levels.

Awards in 2022

Year by year, WIKA BETON is eager grow better. This determination is carried out hand in hand and with the commitment of all elements. As a result, throughout 2022, the Company received numerous awards from stakeholders. The awards were as follows:

  1. 3 (three) awards at the 2022 Public Relations Indonesia Awards (PRIA) annual event, namely:
    • Bronze Winner in the E-Magazine Sub Category for WTONMagz Edition 07 #June 2021.
    • Gold Winner for Sustainability Report Sub Category.
    • Silver Winner in Sustainability Business Sub Category, WIKA BETON Sustainable Innovation 2022.
  2. 3 (three) awards from the TOP CSR Awards 2022, namely:
    • TOP CSR Awards 2022-Star 4.
    • Top Leader on CSR Commitment 2022-Hadian Pramudita.
    • Special Category: Environmental, Social, Governance (ESG) Implementation Field.
  3. 2 (two) awards at the “2022 Corporate Emissions Transparency” event by Investor Magazine and PT Bumi Global Karbon, namely:
    • Green Category, Transparency of Corporate Emission Reduction, Issuer Sector.
    • Gold Category, Transparency of Corporate Emission Calculations, Issuer Sector.
  4. Indonesia TJSL Awards Precast Concrete Industry Sector at the 2022 Indonesia CSR & TJSL Awards (ICA) organized by The Iconomics Magazine.
  5. 2 (two) awards at the 2022 TOP GRC (Governance, Risk, and Compliance) Awards, namely:
    • TOP GRC Awards 2022 # 4 Stars.
    • The Most Committed GRC Leader 2022 for Mr. Kuntjara as WTON’s President Director.
  6. 3 (three) awards in the 2022 Environmental and Social Innovation Awards (ENSIA) event by PT Sucofindo, namely:
    • Platinum Category for 3R Innovation of Non-B3 Solid Waste Concrete Product Factory (PPB) Lampung.
    • Platinum Category for 3R Innovation of Non-B3 Solid Waste Concrete Product Factory (PPB) Majalengka.
    • Gold Category for Water Efficiency Innovation and Pollution Reduction at PPB Bogor.
  7. 2 (two) awards in the 10th BUMN Branding & Marketing Award 2022 event, namely:
    • The Best CMO BUMN Branding and Marketing in Personal Communication category for Mr Rija Judaswara.
    • Global Branding and Marketing for International Recognition category

Outlook 2023

The International Monetary Fund (IMF) through its World Economic Outlook (WEO) projected that world economic growth in 2023 will weaken to 2.9%. This weakening will also occur in large countries such as the United States, Europe and China. Nonetheless, Indonesia’s growth is predicted to remain strong, or slightly decreased in the range of 4.5-5.3%.

Facing various projections for 2023, WIKA BETON remains optimistic. This is due to numerous potential opportunities, such as the Company’s peak performance cycle which usually occurs every five years, the situation in welcoming general election which is usually dominated by many government projects, and the ongoing IKN project. We have carried out comprehensive research on upcoming projections and stated in the 2023 RKAP as our guidance to pursue a better performance in the coming year.

To optimize efforts for target achievements, the Board of Directors has formulated five primary strategies for 2023. The first strategy is related to Human Capital. In this aspect, the Company seeks to further encourage the capacity and capability of all its resources to further sharpen our expertise. The second strategy is to strengthen the Company’s financial capacity through adequate risk management and dependable governance in order to maintain positive cash flow. The third strategy is efforts to further accelerate digitalization which will be highly beneficial in maintaining operational cost efficiencies. The fourth strategy is related to supplies, in which the Company strengthens the procurement system in order to reduce costs and drive optimum production time. The fifth strategy is to utilize the strength from WIKA Group synergy which offers promising prospects.

The Company is optimistic that 2023 will become a better year, especially with the increase in the acquisition of new contracts and the large number of new projects that will start at the end of 2022. These projects will serve as next year’s revenue drivers.

To conform with the Company’s grand vision to strengthen its presence in the international concrete industry, particularly Southeast Asia, one of the Company’s main prospects in the next year is overseas projects. The Company has established a Business Unit for Overseas Sales Area and started its operations. Through this unit, the Company provides project management services by delegating expert reources (selling expertise) in the concrete field.

To grow higher and broaden business scale, the Company has also prepared capital expenditure (capex) of Rp200 billionRp278 billion in 2023. We will allocate this capex to invest in assets to support production capacity in line with the increase in the acquisition of new contracts in the coming year.

The Company is all set to embrace opportunities with our longstanding expertise, resilience and capacity. Armed with the spirit to “Winning the Competition”, the Company is highly confident to move forward and to manifest best performance in the competition.

Review of the Implementation of Good Corporate Governance

To maintain the rights and trust of all stakeholders, WIKA BETON is committed to implement the best practice of Good Corporate Governance (GCG). Moreover, as a subsidiary of a State-Owned Enterprise (BUMN), WIKA BETON has to portray the highest form of integrity. This is the basis of WIKA BETON’s awareness to develop and implement a GCG structure and system which direct all the Company’s elements to actualize GCG values.

The implementation of the principles of Good Corporate Governance is the foundation for the formation of systems, structures and corporate culture that are flexible and adaptive to changes in the competitive business environment. The fundamental principles related to the implementation of GCG principles in the Company consist of 5 (five) principles, namely Transparency, Accountability, Responsibility, Independence and Fairness.

In 2022, the Company’s GCG roadmap is in the Good Corporate Company phase. In this phase, the Company focuses on the implementation of GCG that effectively controls business operations, particularly for its risks. The Company has been exploring this phase and believes that the implementation of good governance is one of our success keys to thrive in 2022. This is especially related to the implementation of routine audits which provide insights for the Company regarding matters that require extra attention while at the same time preventing potential undesirable harm.

Each year, the Company carries out routine evaluation on the quality of governance outcomes. The results of this assessment is essential, because it reflects the adequacy of GCG structure and infrastructure in the Company so as to obtain checks and balances to improve GCG implementation on an ongoing basis.

The Company conducts regular assessments within the Company and its Subsidiaries. Subjectivity is the key to obtain constructive input and assessment recommendations. Hence, the assessment is carried out through two different methods, independently by the Company’s internals (self-assessment) and by an independent party (external assessment).In 2022, the Company carried out a self-assessment and obtained “Very Good” predicate with a score of 90.75.

Risk Management Implementation

The Company has developed an integrated, adequate, reliable and measurable Risk Management System at the corporate level by engaging each work unit. This development is an integral part of a long-term strategy that aims to identify all risks and manage risk positions in accordance with the Company’s policies. As a basis for implementing risk management that applies on an international scale, the Company’s risk management infrastructure is carried out with reference to the ISO 31000:2011 framework.

In practice, the Company ensures that the implementation of risk management has been comprehensively integrated into business processes in order to become an effective early warning system and to provide early information regarding potential risks. Comprehensive mapping and identification will determine appropriate, mature and measurable anticipatory and mitigation steps. Risk identification takes into account the risk context, risk appetite, as well as the risk profile and limits to subsequently subject for management review in determining and developing mitigation strategies that conforms with the Company’s strategic objectives.

In addition to developing its system, the Company also builds a risk awareness culture in all business activities and ensures continuous evaluation and effectiveness enhancement. This aims to create a healthy, conducive and sustainable business climate. In 2022, the Risk Management has carried out a risk assessment and identified 3 (three) risk profiles. Mitigation steps will be determined for each identified risk so as to minimize risk exposure on the Company’s business activities.

Human Capital

WIKA BETON is committed to achieve improvements, particularly in HC function which serves strategic role in supporting the Company’s competitiveness. This continuous improvement is much needed so align the Company’s relevance with developments, changes and increasingly aggressive business growth.

In 2022, the Company pays more attention to the human capital aspect by making organizational changes. This change was carried out to optimize WIKA BETON’s business expansion to the international market and to fulfill the mandate of the Ministry of SOE to prepare the Company’s young talents for succession.

Therefore, WIKA BETON has designed and provided various types of professional training programs and HR development activities that are tailored to achieve the Company’s vision. The objectives of these programs is to improve the expertise and skills of each employee in their respective fields, so that they can produce excellent performance and support the achievement of business targets.

Within each stride, AKHLAK values are always there to guide us. Its internalization are carried out massively and systematically within the Company’s organ and activity so as to develop excellent character consistently. We strive to internalize these values as the spirit and the foundation that reflect all WIKA BETON’s endeavors in carrying out its business activities. These core values will serve as significant enabler for WIKA BETON to sharpen its expertise towards becoming a global player.

Information Technology (IT)

Developments in the construction field are becoming more and more interesting when conventional methods are gradually changing and switched to new, more efficient methods. As an entity that carries the spirit of Innovation and Trust, WIKA BETON grasps that IT and its development are significant to become an adaptive entity to survive and win market competition.

In addition to developing software-based systems, WIKA BETON is also developing the infrastructure to support the development of digital information systems. WIKA BETON perfected the digitization process by developing various integrated systems, such as Enterprise Resource Planning (ERP) consisting of an Operating System (OS), Finance and Human Capital Information System (HCIS). In addition, Workin’ Application, e-QC Application, WTONPedia, E-File (digital document archiving), WTON Audit Application, KBI Application (360 degree employee assessment), GCG Application, WTON Visitor Application, and others have been developed.

WIKA BETON’s IT development roadmap focuses on 5 (five) primary aspects, namely IT Facility, Integrated App, Cloud Base DRC, Cloud Base DC, and Manufacturing App. This roadmap has been adapted to Corporate Roadmap and synergizes with Central WIKA. In 2022, WIKA BETON’s IT Digitalization Roadmap is in the “Strengthen Operation” phase. In this phase, the development is focused on:

  1. Development of Workin’ Mobile Application
  2. Development of mold monitoring application using RFID
  3. Development of TMS (Transport Management System) Application
  4. Development of POTOB Application (Project On Time On Budget)
  5. Development of KM (Knowledge Management) Application
  6. Development of Meetus application

Corporate Social Responsibility

WIKA BETON is aspired to rachieve sustainable development and provide tangible benefits for the nation and all stakeholders. Therefore, the Company integrates endeavors to earn revenues (profit) within the efforts to preserve the environment (planet) and to improve the welfare of the community (people) supported by good corporate governance (governance).

As its manifestation, the Company renewed its Strategic Corporate Social Responsibilities (CSR) Policy on April 19, 2022. This is the Company’s commitment and contribution to support sustainable development in the economic, social and environmental fields according to ISO 26000 and Sustainability Development Goals (SDGs), in order to improve the quality of life and the environment that is beneficial to the Company, the local community, and society.

In carrying out Strategic Corporate Social Responsibility programs and activities, the Company needs to establish procedures. It is a series of activities or stages that must be carried out in order to attain desirable output. The Strategic Corporate Social Responsibility procedure is referred to as: “Strategic Corporate Social Responsibility Activity Management Procedure” with the number WB-CSH-PS-05 Rev.02.

To ensure continuous performance, the Company always improves social and environmental quality that is related to its business. One of which is the implementation of TJSL (Social & Environmental Responsibility) program which has a Creating Shared Value (CSV) approach, with multi-benefits for multistakeholders.

Highlights of CSR activities in 2022 coincide with the 25th Anniversary of WIKA BETON. At this moment, the Company carried out Social and Environmental Responsibility (TJSL) activities at 16 (sixteen) points spread across Indonesia with a total fund of Rp300 million. There were 4 (four) pillars of the TJSL program in 2022, namely:

  1. WTON 3R “Beautification of Public Facilities” or the improvement of public facilities in seven places of worship, three schools and five health centers.
  2. WTON Peduli “Hijaukan Sekitarmu” with a total of 570 tree plantings, in synergy with WIKA Group and WTON Peduli Nakes with a total of 400 health workers recpients.
  3. WTON Sehat “Covid-19 Booster Vaccine” for employees, families and communities around WIKA BETON’s work unit with a total of 640 booster vaccine recipients.
  4. WTON Pintar, in collaboration with Ruangguru to provide scholarships for employees’ children and the surrounding environment.

In addition to these 4 (four) pillars, TJSL activity also carried out in collaboration with Komunitas Jakarta Mengabdi, on Pari Island, Kepulauan Seribu, by planting coral reefs and mangroves, releasing nemo fish seeds, and beautifying places of worship.

Specifically for 2022, WIKA BETON focuses on providing assistance for health workers. It provided in the form of groceries, health centers renovation, to the provision of medical equipment assistance such as oxygen concentrators. WIKA BETON realizes that health centers are at the forefront of handling public health, especially during the pandemic situation. Therefore, this program was carried out as the form of our appreciation and gratitude for the health workers.

The Company’s seriousness in implementing CSR activities that provide tangible benefits has also received attention from the wider community. As a result, the Company received several CSR awards which energize our commitment to increase our contribution to all stakeholders. We describe a comprehensive explanation regarding our commitment to economic, social and environmental aspects in our 2022 Sustainability Report.

Changes in the Board of Directors Composition

The Annual General Meeting of Shareholders for the 2021 Fiscal Year dated April 18, 2022 approved the honorable discharge of Mr. Hadian Pramudita and Mr. Imam Sudiyono from the Board of Directors. This is stated in the Deed of Statement of GMS Resolutions No. 43 dated April 18, 2022. Thus, as of 31 December 2022, the composition of the Board of Directors is as follows:

Position Name
President Director Kuntjara
Marketing and Development Director Rija Judaswara
Finance, Human Capital and Risk Management Director Ahmad Fadli Kartajaya
Operations & Supply Chain Management Director Taufik Dwi Wibowo
Engineering and Production Director Sidiq Purnomo

Through this opportunity, allow me to extend my greatest appreciation to Mr. Hadian Pramudita and Mr. Imam Sudiyono for their dedication as the Company’s Directors. To the current Board of Directors, let’s perform our best to support the vision of becoming the foremost precast concrete company in Engineering, Production, Installation (EPI) in Southeast Asia.

Profuse Appreciation

To conclude, the Board of Directors extend profuse appreciation, especially to our Holding Company, PT Wijaya Karya (Persero) Tbk. Also, to the Board of Commissioners for their supervision and directions. To our partners for their cooperative collaboration, shareholders, and to other stakeholders for their unwavering trusts.

We also extend our highest appreciation to all WIKA BETON’s employees for their solid dedication and enthusiasm to bolster the Company’s position in the competition. Let’s share this optimism and exert our best performance for Indonesia.

On Behalf of the Board of Directors,


President Director