This is the reason Waskita Karya (WSKT) chose funding from the toll divestment

Reporter: The first is blessed | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. This year PT Waskita Karya Tbk (WSKT) aiming for cash in from the planned divestment of its four toll roads, including Bekasi-Cawang-Kampung Melayu (Becakayu) Toll Road, Kanci-Pejagan Toll Road, Pejagan-Pemalang Toll Road and selling a portion of ownership in the Cibitung-Cilincing Toll Road. Waskita Karya plans to release concessions with two schemes, namely directly to investors and using the issuance of equity instruments.

Finance Director Waskita Karya Taufik Hendra Kusuma explained the reason Waskita chose divestment as an effort to maintain cash flow. According to Taufik, the toll road owned by Waskita Karya is currently dominated by the results of its subsidiary, Waskita Toll Road, which was then worked on by Waskita Karya as the parent company and supported by other subsidiaries.

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This causes the income from construction to increase rapidly. On the other hand, the toll road business cycle in the initial operational phase also recorded negative cash. So the income from operating the toll road is considered insufficient to finance the operation of Waskita Karya given the payback period (payback periode) toll can be up to 15 years.

“If we wait for cash to come in from reccuring business then we will lose. So that if divested though the position is not positive, because the assessment uses future income we get valuations that we can take the money at once, “explained Taufik, Saturday (12/7).

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Taufik also added that every toll road belonging to Waskita that had started operating needs to be divested because the divestment proceeds will be used again to invest in new tracts. “Once the divestment is stuck, our new investment will automatically end up having to use another funding source or be delayed,” he said.

In terms of funding, according to Waskita Karya, the source of funds for bank loans or financial institutions is considered more expensive when compared to the funds coming from the divestment.