WIKA POCKETS RP2.7 TRILLION FROM POWER PLANT PROJECT

Jakarta, Aug 24 (ANTARA) - State construction company PT.Wijaya Karya Tbk (WIKA) managed to secure power plant projects with a total capacity of 3,950 megawatts (MW) worth Rp2.7 trillion.

"The coal-fired power plants PLTU Banten and PLTU Labuan, are among the seven power plants scheduled to start commercial operation in September 2009," WIKA corporate secretary Natal Argawan said in Jakarta Sunday.

For the two PLTUs, WIKA was entrusted with their civil engineering and architectural work worth Rp398 billion, and the building of a jetty marine work estimated at Rp402 billion, so that for this project WIKA pocketed Rp800 billion, Natal said.

In the meantime, according to the manager of the two projects Eko Susilo Prayitno, the construction of the two projects has entered it final stages and has reached 99.5 percent, while the first stage with a capacity of 300 MW will operate in September 2009, and the second stage capacity 300 MW will start in December 2009.

The peak construction of this project employed 1,500 workers, and thus causes a multiplier effect on the economy of banks, the mushrooming of food stalls, including rented rooms, he added,
But since the construction of a PLTU needs special skill, local workers cannot be involved, because most of the skilled personnel had been recruited from areas other than Banten, while local workers are involved only the procurement of goods, Eko said.

Income from energy projects, including PLTU Banten and PLTU Labuan in the first semester reached Rp431 billion, which is 15 percent of the total income estimated at Rp2.9 trillion, the second biggest contributor after General Contractor.

WIKA's biggest income came from General Contractor's work both at home and overseas reaching Rp660 billion (23 percent), Natal said.

WIKA in the first semester of 2009 managed to book a net profit of Rp93 billion, which was a 51 percent increase compared to Rp 62 billion earned in last year's same period. The net profit of 53.1 percent was the management's projected new profit.

The success in gaining the net profits was supported by the company's income of Rp2.97 trillion, which had reached 40 percent of the target. "Normally, our income will increase towards the last months of the year, or in the second semester of 2009," Natal said.

Increase in the company's gross profit margin of 37 percent by 6.13 percent to 8.4 percent, already included the final income tax of Rp 54.9 billion on construction services imposed in 2008, he added.