MARKETING STRATEGY DEVELOPMENT AND MARKET SEGMENTATION ANALYSIS OF PT. WIJAYA KARYA
ON GOVERNMENT POLICIES
IN THE BUILDING EPC CHAMPION PROGRAM
FINAL PROJECT
By:
ARGA BIMA 29120206
Master of Business Administration Program School of Business and Management
Bandung Institute of Technology
2022
MARKETING STRATEGY DEVELOPMENT AND MARKET SEGMENTATION ANALYSIS OF PT. WIJAYA KARYA ON GOVERNMENT POLICIES
IN THE BUILDING EPC CHAMPION PROGRAM
ARGA BIMA NIM : 29120206
Date of Passing of Final Test (____/____/____) Date of Graduation Ceremony (____/____/____) Graduate Program, Institut Teknologi Bandung, 2022 Thesis Advisor: Atik Aprianingsih, S.T., M.M., D.B.A.
ABSTRACT
The Indonesian government's efforts to synergize state-owned enterprises continue to be intensifying. The Ministry of State-Owned Enterprises continues to streamline and improve the portfolio of the number of SOEs through corporate restructuring with a holding system, mergers, and acquisitions. As an initial step towards creating an infrastructure SOES holding, the Ministry of SOES launched a "Building EPC Champion"
program which aims to regroup companies in the EPC sector based on their business strengths to become market segment leaders.
Through the program of the Ministry of SOEs, PT. Wijaya Karya (Persero) Tbk will become the industrial sector market segment champion, including the Industrial and Metals and Mining markets. By referring to the company's historical financial data, and its operational performance, there must be an evaluation of WIKA's ability to become a champion in the industrial sector. The object of research in this final project is the condition of the industrial market, divided explicitly into the industrial factory market and the oil & gas market in Indonesia, which PT Wijaya Karya (Persero) Tbk currently follows. A conceptual framework for a marketing strategy that is appropriate for the company is needed to overcome this problem.
This final project research uses internal and external environmental analysis to find company business solutions. The internal analysis uses Resource Analysis, Capabilities Analysis, and Value Chain Analysis. Meanwhile, the external analysis uses PESTEL analysis, Porter's Five Forces Analysis, Market Analysis, Competitor Analysis, and Consumer Analysis. Analysis of IFE and EFE Matrix was carried out to analyze the company's Strengths, Weaknesses, Opportunities, and Threats and through TOWS Analysis to obtain the development of marketing strategies from this research.
Based on the previously mentioned TOWS strategy and analysis, several alternative marketing strategies were obtained. The IE Matrix and the QSPM Matrix assessment show that carrying out a cooperation strategy with competent foreign companies can increase the company's capabilities and competencies as capital to compete in the Indonesian industrial market.
Keywords: EPC, Engineering, Procurement, Construction, Industrial, Marketing, SOEs.
PENGEMBANGAN STRATEGI PEMASARAN DAN ANALISIS SEGMENTASI PASAR PT. WIJAYA KARYA TERHADAP KEBIJAKAN PEMERINTAH
DALAM PROGRAM BUILDING EPC CHAMPION
ARGA BIMA NIM : 29120206
Tanggal Kelulusan Sidang (____/____/____) Tanggal Wisuda (____/____/____)
Program Magister Administrasi Bisnis, Institut Teknologi Bandung, 2022 Pembimbing Tesis: Atik Aprianingsih, S.T., M.M., D.B.A.
ABSTRAK
Upaya pemerintah Indonesia untuk mensinergikan BUMN terus digencarkan.
Kementerian Badan Usaha Milik Negara terus mengefektifkan dan meningkatkan portofolio jumlah BUMN melalui restrukturisasi korporasi dengan sistem holding, merger, dan akuisisi. Sebagai langkah awal untuk menciptakan holding BUMN infrastruktur, Kementerian BUMN meluncurkan program “Building EPC Champion”
yang bertujuan untuk mengelompokkan kembali perusahaan-perusahaan di sektor EPC berdasarkan kekuatan bisnisnya untuk menjadi pemimpin segmen pasar.
Melalui program Kementerian BUMN, PT. Wijaya Karya (Persero) Tbk akan menjadi juara segmen pasar sektor industri, termasuk pasar Industri dan Logam dan Pertambangan. Dengan mengacu pada data keuangan historis perusahaan, dan kinerja operasionalnya, maka harus ada evaluasi terhadap kemampuan WIKA untuk menjadi champion di sektor industri. Objek penelitian dalam tugas akhir ini adalah kondisi pasar industri yang secara eksplisit terbagi menjadi pasar industri pabrik dan pasar minyak &
gas di Indonesia yang saat ini telah diikuti oleh PT Wijaya Karya (Persero) Tbk.
Kerangka konseptual untuk strategi pemasaran yang tepat untuk perusahaan diperlukan untuk mengatasi masalah ini.
Penelitian tugas akhir ini menggunakan analisis lingkungan internal dan eksternal untuk mencari solusi bisnis perusahaan. Analisis internal menggunakan Analisis Sumber Daya, Analisis Kemampuan, dan Analisis Rantai Nilai. Sedangkan analisis eksternal menggunakan Analisis PESTEL, Analisis Lima Kekuatan Porter, Analisis Pasar, Analisis Pesaing, dan Analisis Konsumen. Analisis IFE dan EFE Matriks dilakukan untuk menganalisis Strengths, Weaknesses, Opportunities, dan Threats perusahaan dan melalui Analisis TOWS untuk mendapatkan pengembangan strategi pemasaran dari penelitian ini.
Beberapa alternatif strategi pemasaran diperoleh berdasarkan strategi dan analisis TOWS yang telah disebutkan sebelumnya. Dengan peniaian dengan menggunakan IE Matriks dan QSPM Matriks menunjukan bahwa dengan melakukan strategi kerjasama dengan perusahaan asing yang kompeten dapat meningkatkan kapabilitas dan kompetensi perusahaan sebagai modal untuk bersaing di pasar industrial Indonesia.
Kata Kunci: EPC, Rekayasa, Pengadaan, Konstruksi, Industrial, Marketing, BUMN.
VALIDATION PAGE
MARKETING STRATEGY DEVELOPMENT AND MARKET SEGMENTATION ANALYSIS OF PT. WIJAYA KARYA ON GOVERNMENT POLICIES
IN THE BUILDING EPC CHAMPION PROGRAM
By:
ARGA BIMA NIM: 29120206
Master of Business and Administration Program School of Business and Management
Bandung Institute of Technology
Approved,
Bandung, 14 February 2022 Final Project Advisor
Atik Aprianingsih, S.T., M.M., D.B.A.
DECLARATION OF NON-PLAGIARISM
FOREWORD
Praise be to God for the blessings and grace that made the author complete the Master of Business Administrations degree at School of Business Management, Institut Teknologi Bandung. The author would like to take this occasion to record sincere gratitude and tribute to:
1. Beloved wife Melinda Rosa Dewi and my beloved children Alycia Shelomita &
Martian Giannes always gave me encouragement, prayers, and support during my journey to get a Master's in Business Administration.
2. My parents and in-laws for praying for all the activities of my life journey.
3. Atik Aprianingsih, S.T., M.M., D.B.A., as the Final Project Supervisor who has provided insightful advice, brilliant knowledge, and extraordinary professionalism.
4. Directors of PT. Wijaya Karya (Persero) Tbk. has allowed me to study Master of Business Administration at the School of Business Management, Bandung Institute of Technology, with a scholarship program.
5. SBM Lecturers and Staff.
6. All friends of BLEMBA 63 ITB, especially the Syndicate 5 partner group (Zaki Abdurrasyid, Novi Kusumaningrum, and Novriani Tria), for all the discussions and cooperation in all lecture assignments.
Finally, in writing this research, the writer tries to write as well as possible, but the writer realizes that there are still shortcomings in the research. Therefore, for the sake of the perfection of this research, readers can provide suggestions to the email arga_bima@sbm- itb.ac.id. Hopefully, this Final Project can be practical and provide knowledge for the readers.
Bandung, February 2022
Arga Bima
TABLE OF CONTENT
ABSTRACT...1
ABSTRAK...2
VALIDATION PAGE...3
DECLARATION OF NON-PLAGIARISM...4
FOREWORD...5
TABLE OF CONTENT...6
LIST OF TABLES...8
LIST OF FIGURES...9
CHAPTER I INTRODUCTION...10
1.1. Background...10
1.1.1. SOE’s Strategy Overview...10
1.1.2. Infrastructure Cluster...12
1.1.3. Engineering, Procurement, and Construction (EPC)...13
1.1.4. Building EPC Champion Program...14
1.2. Company Profile...19
1.2.1. Vision, Mission, Value...20
1.2.2. Organization Structure...21
1.2.3. Scope of Business...25
1.3. Business Issue...31
1.4. Research Questions...34
1.5. Research Objectives...34
1.6. Research Scope and Limitation...34
1.7. Writing Structure...35
CHAPTER II BUSINESS ISSUE EXPLORATION...36
2.1. Literature Review...36
2.2. Conceptual Framework...36
2.3. Research Methodology...38
2.3.1. Research Design...38
2.3.2. Data Collection...40
2.4. Internal Analysis...40
2.4.1. Resources Analysis...40
2.4.2. Capabilities Analysis...54
2.4.3. Value Chain Analysis...56
2.5. External Analysis...65
2.5.1. PESTEL Analysis...65
2.5.2. Porter’s Five Force Analysis...71
2.5.3. Market Overview...81
2.5.4. Competitor Analysis...89
2.5.5. Consumer Analysis...102
2.6. Conclusion of Business Analysis...107
2.6.1. Internal Factor Evaluation Matrix (IFE) Matrix...108
2.6.2. External Factor Evaluation Matrix (EFE) Matrix...114
2.6.3. Root Cause Analysis...120
CHAPTER III BUSINESS SOLUTION...124
3.1 Business Solution Alternatives...124
3.1.1. TOWS Matrix...124
3.1.2. Internal-External (IE) Matrix...136
3.2 Analysis of Alternatives...139
CHAPTER IV CONCLUSION AND IMPLEMENTATION PLAN...144
4.1. Conclusion...144
4.2. Implementation Plan...145
BIBLIOGRAPHY...159
APPENDIX...162
LIST OF TABLE
Table 1.1 Companies in the Infrastructure Cluster...12
Table 1.2 Determined Specialization Based on Historical Strength...15
Table 1.3 Ten Market Segments in the Infrastructure Cluster...16
Table 1.4 Description, Market Share, and Company Involved at Each Level...17
Table 1.5 Market Segment Grouping in Each Infrastructure Cluster Company...19
Table 1.6 WIKA's Market Segment Category in the Building EPC Champion Program...31
Table 1.7 WIKA’s Operational Performance of Every Each Segment (2020 & 2019)...32
Y Table 2.1. WIKA’s Growth Revenue (2019-2020)...41
Table 2.2. WIKA’s Liquidity Ratio, Solvency Ratio, and Profitability Ratio...42
Table 2.3. Assessment of the Financial Soundness of State-Owned Enterprises...43
Table 2.4. Indicators and Weights on WIKA's Financial Health...43
Table 2.5 List of WIKA’s Organizational Resources...45
Table 2.6 WIKA’s Soundness Level in 2019 and 2020...45
Table 2.7 Types and Characteristic of Technological Companies...48
Table 2.8 Innovations Keywords and Measurement Indicators...52
Table 2.9 PT. Wijaya Karya (Persero) Tbk Capabilities...54
Table 2.10 Descriptions of the Operational Stages of the WIKA Project...58
Table 2.11 Proportion of Labour in the Industrial Sector...68
Table 2.12 The Result of Porter’s Five Force Analysis...80
Table 2.13 WIKA's target market is the industrial sector...82
Table 2.14 Location and Status of Sediment Basins in Indonesia...86
Table 2.15 Project Target on WIKA's Power Plant and Industrial Plant Market in 2022...88
Table 2.16 Project Target on WIKA's Oil & Gas Market in 2022...88
Table 2.17 Comparison of WIKA's Information with its Competitors in Industrial Sector...91
Table 2.18 PT. Pembangunan Perumahan (Persero) Tbk Growth Revenue...94
Table 2.19 Financial Ratio of PT. Pembangunan Perumahan (Persero) Tbk...94
Table 2.20 Financial Ratio of PT. Rekayasa Industri...96
Table 2.21 Financial Ratio of Chiyoda Corporation...98
Table 2.22 Competitor Analysis of PT. Wijaya Karya (Persero) Tbk...100
Table 2.23 Some Consumers of PT. Wijaya Karya (Persero) Tbk in the Industrial Sector. 103 Table 2.24 Consumer Interview Results...104
Table 2.25 The Internal Factor Evaluation Matrix (IFE)...109
Table 2.26 The External Factor Evaluation Matrix (EFE)...115
Table 3.1 TOWS Matrix...125
Table 3.2 Examples of Foreign Company Targets and Company Competency Targets...134
Table 3.3 Strategic Grouping of Alternative Solutions on the TOWS Matrix...138
Table 3.4 QSPM Matrix Calculation...141
Table 3.5. Strategy Alternatives Rank Based on TAS...142
Table 4.1 Implementation Plan...156
Table 4.2 Implementation Plan Timeline...158
LIST OF FIGURE
Figure 1.1 Target of Downsizing of SOEs Companies...11
Figure 1.2 SOEs Cluster Division...11
Figure 1.3 The Comparison of the EPC Project Scheme and the Ordinary Project Scheme. 14 Figure 1.4 Market Segment Level...17
Figure 1.5 PT. Wijaya Karya (Persero) Tbk Organizational Structure...22
Figure 1.6 PT. Wijaya Karya (Persero) Tbk Business Portfolio...26
Figure 1.7 PT. Wijaya Karya (Persero) Tbk Business Lines...27
Figure 1.8 PT. Wijaya Karya (Persero) Tbk’s Business Flow...27
Figure 1.9 PT. Wijaya Karya (Persero) Tbk’s Business Operation Area...30
Figure 1.10 New Contract per Market Segment from January to June 2021...32
Figure 1.11 WIKA’s Order Book and New Contract of Each Segment from 2017 – 2021.. 33
Figure 1.12 Historical Revenue in Every Each Segment...33
Y Figure 2.1 Conceptual Framework...37
Figure 2.2 Research Design...39
Figure 2.3 Type of Organizational Resources...44
Figure 2.4 WIKA Technology Development Roadmap 2018-2023...48
Figure 2.5 WIKA's Employee Classification uses the 9-Box Grid Method...50
Figure 2.6 Integrated Model of Innovation Capability...51
Figure 2.7 PT. Wijaya Karya (Persero) Brand Awareness...53
Figure 2.8 Value Chain...56
Figure 2.9 Indonesia's Infrastructure Budget (Rp Trillion)...66
Figure 2.10 Projected Exchange Rate of IDR per USD on 2020...67
Figure 2.11 Distribution of Plans for Additional Power Plants in Indonesia...84
Figure 2.12 Indonesian Oil and Gas Compared to Other Countries...87
Figure 2.13 Competitor Analysis...89
Figure 2.14 Root Cause Analysis...121
Figure 3.1 The Internal-External (IE) Matrix...137
CHAPTER I INTRODUCTION
1.1. Background
Indonesia is predicted to become one of the world's leading economic powers in 2045. More optimal efforts are needed to realize this hope by utilizing all existing resources, including State-Owned Enterprises or commonly abbreviated as SOEs. The SOEs are business entities whose capital is wholly or most of the capital owned by the state.
BUMN is also a source of state income whose profits are used to finance the government budget. As an SOE, it must continue to improve its acceleration and performance and strengthen its role as an agent of development and value creation.
Strengthening the synergy between SOEs has positively contributed to creating efficiency and productivity of SOEs to respond to the current global competitive situation. The business value built is the principal capital of SOEs to form a strong nation with strong and sustainable economic growth. The Ministry of SOEs is always committed to building a business transformation to create a competitive SOE with the support of strategic and targeted policy regulations. The Indonesian government's efforts to synergize state-owned enterprises continue to be intensifying. Establishing a sector-based holding is a step taken by the government to expand investment and increase company synergy. The holding strategy is expected to make SOEs solid in managing the company. The formation of synergies between subsidiaries through coordination, control, and management carried out by the parent company can strengthen finances, assets, and business prospects. The establishment of the holding has enormous hope for the progress of the nation and state. SOEs are believed to be a driver for developing national strategies and can correct market failures. Establishing a sector-based holding is a step taken by the government to expand investment and increase company synergy.
1.1.1. SOE’s Strategy Overview
In line with government strategy and to increase performance and added value, the Ministry of State-Owned Enterprises continues to streamline and improve the portfolio of the number of SOEs through corporate restructuring with a holding system, mergers, and acquisitions.
The development of the restructuring focus is carried out starting in 2020, which will make
the number of SOEs companies more efficient with less than 70 SOEs companies in 2025, as shown inFigure 1.1.
2018 2019 2020 2025
0 25 50 75 100
125 116 114 108
70
Years
Number of Companies
Figure 1.1 Target of Downsizing of SOEs Companies.
(Source: https://bumn.go.id)
Establishing a SOEs holding is not easy, and a comprehensive study is needed to determine part of a national strategic project holding company. The coordination strategy from the Ministry of SOEs and several related state-owned companies is needed to determine the holding company to make suitable decisions. This holding strategy is expected to make SOEs more developed to reach the global market and improve their corporate performance to create market value. The long-term goal in establishing this holding is to increase the contribution of SOEs in contributing to state revenue, simplify corporate management, efficiency, synergy, increase production, diversification, leverage, and cost-saving.
Following the long-term strategy of the Ministry of SOEs, the companies under the auspices of SOEs will be grouped into clusters according to their respective value chains and core businesses to improve value chain strengthening and efficiency. Currently, 12 SOEs clusters have been formed, fostered by two Deputy Ministers, as shown in .
Deputy Minister 1
Cluster 1 Energy & Oil
and Gas
Cluster 2 Minerals and
Coal
Cluster 3 Plantation and Forestry
Cluster 4 Food Industry
Cluster 5 Health Industry
Cluster 6 Manufacture
Industry
Deputy Minister 2
Cluster 7 Financial
Services
Cluster 8 Insurance &
Pension Fund
Cluster 9 Telecommuni
cation
Cluster 10 Infrastructure
Industry
Cluster 11 Logistic Industry
Cluster 12 Tourism and
Support
Figure 1.2 SOEs Cluster Division.
(Source: https://bumn.go.id)
1.1.2. Infrastructure Cluster
From 2014, infrastructure has become one of the government's flagship programs to carry out national strategic projects, expecting to accelerate national economic growth. The government's concentration on infrastructure is a form of the equitable development program in Indonesia. Equitable development is a big step towards economic equity. With better economic capacity, a region or a country can support itself. After achieving good infrastructure, all will have the same opportunity to be involved in the economic process.
When the state of infrastructure in a country is weak, it means that the economy in that country is running inefficiently. To support the government's program, it is hoping that companies in this infrastructure cluster can become an engine for accelerating infrastructure development in Indonesia. Based on Table 1.1, there are ten companies grouped in the infrastructure cluster of the Ministry of SOEs.
Table 1.1 Companies in the Infrastructure Cluster.
No. Company Logo Company Name Sector
1. PT. Waskita Karya (Persero) Tbk.
Engineering, Procurement, Construction.
(EPC)
2. PT. Brantas Abipraya (Persero)
3. PT. Hutama Karya (Persero)
4. PT. Adhi Karya (Persero) Tbk.
5. PT. Pembangunan Perumahan (Persero) Tbk.
6. PT. Wijaya Karya (Persero) Tbk.
7. PT. Semen Indonesia (Persero) Tbk. Cement
Industry
8. PT. Semen Baturaja (Persero) Tbk.
9. PT. Jasa Marga (Persero) Tbk. Toll Road
Operator
10. Perum Perumnas Housing and
Settlements (Source: https://bumn.go.id)
Based on Table 1.1, it can be seen that there is a grouping of sectors in the infrastructure cluster, which is further dividing into four sectors. The four sectors are Engineering,
Procurement, and Construction (EPC), Cement Industry, Toll Road Operator, and Housing &
Settlements.
1.1.3. Engineering, Procurement, and Construction (EPC)
The engineering, procurement, and construction (EPC) contract is a form-contractors commonly use to take over construction work for complex and large-scale infrastructure projects. In an EPC contract, the contractor must build a complete facility for the project owner to immediately operate the facility. The facility construction process is bound by a specific budget and period that has been mutually agreed upon between the contractor and the project owner, and the facility must be able to function following predetermined standards.
The scope of duties and responsibilities of the EPC company include:
1. Engineering
This phase is carried out with a step-by-step approach, starting from the conceptual stage, basic engineering, to the detailed engineering stage. The Engineering phase has the most decisive influence on the project, and many important decisions are made during the planning process that determine the number of funds, duration of work plans, work methods, and other resources required.
2. Procurement
The procurement activity phase is an attempt to obtain goods in materials, equipment, and services (sub-contractors) from outside parties for the project. Procurement or purchasing and subcontracting activities can be carried out after the project scope is determined and described in engineering detail so that the type and amount of material and equipment needed for project construction will be seen.
3. Construction
The construction activity phase is efficiently constructing or constructing an installation based on everything decided at the engineering design stage. The scope of construction activities is broadly divided into physical and non-physical activities. Physical activities include building temporary facilities for temporary office use and other civil works.
Meanwhile, non-physical work includes operational construction activities, controlling construction activities, controlling labour, conducting inspections, and administrative work.
When compared to conventional construction contracts, EPC projects have very high challenges, ranging from the interdependence of existing activities, the overlapping phases between each of these activities, the breakdown of activities into more detailed work activities, the complexity of the organizational structure, and uncertainty in the accuracy of predictions that arise throughout the project implementation. The most challenging activities in this project are budgeting and project implementation schedules because they must be made and known before starting. The following illustrates the comparison of the EPC project stage scheme and the ordinary project stage shown in Figure 1.3.
Figure 1.3 The Comparison of the EPC Project Scheme and the Ordinary Project Scheme.
(Source: Author, 2022)
1.1.4. Building EPC Champion Program
In establishing an SOE’s holding, the Government needs to take prudent steps by conducting a comprehensive study that considers macro and microeconomic variables and involves many parties in the decision-making process. Likewise, in the formation of holdings in infrastructure clusters with significant business complexity. As an initial step towards creating an infrastructure SOE’s holding, the Ministry of SOE’s launched a “Building EPC Champion” program which aims to regroup companies in the EPC sector based on their business strengths to become market segment leaders. Six companies in the infrastructure cluster are involved in running the Building EPC Champion program:
Procurement
Conceptual Development &
Feasibility
Front and Engineering Design (FEED)
Detail Engineering Design (DED)
Construction Commissioning
Operation Project Owner
EPC Contractor
Commissioning Contractor Project Owner
Project Owner
Consultant
Commissioning Contractor Project Owner Specialist Company
Contractor
Project Stage
EPC Scheme Ordinary Scheme
1. PT. Waskita Karya (Persero) Tbk. / WASKITA 2. PT. Brantas Abipraya (Persero) / ABIPRAYA 3. PT. Hutama Karya (Persero) Tbk. / HK 4. PT. Adhi Karya (Persero) Tbk. / ADHI
5. PT. Pembangunan Perumahan (Persero) Tbk. / PP 6. PT. Wijaya Karya (Persero) Tbk. / WIKA
In planning the grouping of the six companies in the infrastructure services cluster, the Ministry of SOEs looks at five main factors to determine which company can lead a market segment. Each company is assessed based on Historical revenue & confirmed pipeline, Investment value, Resources, Market Reputation, and Track record of execution. In detail, the indicators of the five aspects of determining the specialization of infrastructure service cluster companies can be seen in Table 1.2.
Table 1.2 Determined Specialization Based on Historical Strength.
No. Specialization Rating
Weight Indicators
1. Historical revenue &
confirmed pipeline 50% 2015-2021 Revenue and confirmed pipeline for each of the 5 company in each of the 10 segments.
2. Investment value 20% Investment made in each segment over 2017-2019.
3. Resources 20% Existing dedicated segment resources of the company, number of Project Managers with certifications.
4. Market reputation 10%
Survey of the company customers to understand what criteria are important to them and which company rate best along those criteria.
5. Track record of
execution 0%
Percentage of project through 2015-2019 that each company completed on-time and in-budget in each section. (This track record is excluded due to variation in definition and nuances of each project to determine on-time and in-budget by each company resulting in unreliable result).
(Source: BCG Analysis Report for the Ministry of SOE’s)
Considering the five indicators on historical revenue & confirmed pipeline, investment value, resources, market reputation, and track record of execution, the Ministry of SOEs will later assess the five companies to become champions or leaders for particular market segments.
State-owned companies in the infrastructure cluster in the EPC sector have ten market segments that are their business targets as shown in Table 1.3.
Table 1.3 Ten Market Segments in the Infrastructure Cluster.
No. Market Segment Typical Uses Typical Customers
1. Residence &
Commercial
Houses, apartments, hotels, office- buildings, stores, malls, stadium, industrial estate
Minister for Public Works and Housing, Reality Developer, Individual Customer
2. Road & Related Buildings
Toll roads, road bridges, tunnels, fly-over, civic, religious, education, and healthcare buildings
Minister for Public Works and Housing, Central & Local Government
3. Water & Dams
Sewage, irrigation, drainage, desalination plants, seawalls, hydro power-plant, dams
Minister for Public Works and Housing, PLN, MIND ID
4. Rail & High-Speed Railway
Rail tracks, rail bridges, rail stations, rail tunnels, modern city transport
Ministry of Transportation, PT. KAI, KCIC
5. Seaport Seaport, jetty, breakwater PT. Pelindo, Infrastructure Developer
6. Airport Airports, Runway, Apron PT. Angkasa Pura
7. Industrial
Production facilities, refineries, tanks & pipelines, automobile, textiles & yarn, acid, pharma, incinerator, waste management
PT. Pertamina, Private Oil Company, SOEs, Local Government, Private Company
8. Power &
Renewables
Power plants, steam-powered (PLTU, PLTGU, Diesel), solar farms, wind towers, biofuel
PT. PLN, Infrastructure Developer, Industry, Power Plant
9. Power (specialized) Transmission lines, coal-fired
power plants PT. PLN
10. Metal & Mining Smelter, mines, coating mills PT. MIND ID, PT. Krakatau Steel, Mining Company (Source: Company Document, 2020)
The fundamental objective of the Building EPC Champion program is to ensure that companies within the infrastructure cluster have their core competencies. These core competencies will become the company's specific specialty and are expected to develop sustainably in the future. In the industry's current state, there is competition among companies under the Ministry of State-Owned Enterprises, including six companies in the infrastructure cluster with the EPC sector fighting for the same market segment and constantly competing for projects available in the market. These companies compete in a saturated market that does not generate maximum profits for the Government of Indonesia.
The essence of the purpose of the Building EPC Champion program being implemented is that each company will focus on one market segment and follow the core competencies set by the Ministry of SOEs. Companies are given the freedom to export business development according to their core competencies without competing with SOEs because each company
has its target market and avoids competition among SOEs. The separation of target markets is expected to enable each BUMN to develop and explore its business in its respective market.
Technically, the Building EPC Champion program is divided into four categories: Champion, Focus, Common, and Opportunistic. In Figure 1.4, the four-tier categories have different descriptions, market share sizes, and the number of companies involved. Each of the six companies will prioritize entry into the Champion, Focus, and Common sections, while at the Opportunistic level, companies are only allowed to play occasionally under certain circumstances. With the division of these categories, it is hoped that the company can focus on running its business and avoid business conflicts between SOEs. In the long term, the competitive climate of the industry will run and generate enormous profits for the Indonesian government as the company's largest shareholder.
Table 1.4 Description, Market Share, and Company Involved at Each Level.
Levels Description Market
Share
Compan y Involved Champion:
The company to be market leader and go-to-
company in Indonesia.
30-40% 1
Company Focus:
The company to be among top-3 players and have specialized capabilities.
20-30% 2-3
Company Common:
Large segments where all Company are needed for
national development.
10-20% 4-5
Company Opportunistic:
The company occasionally plays in particular circumstances.
0-10% 5
Company (Source: BCG Analysis Report for the Ministry of SOE’s.)
State-owned companies selected to participate in the Building EPC Champion program will be separated and grouped according to four-level categories, namely Champions, Focus, Common, and Opportunistic categories. In more detail, a more detailed definition and explanation at each level can be seen in Table 1.4.
1. Champion
17 Cha
mpion
Focus
Common
Opportunistic
At the Champion level, there is only one company involved in one market segment. The company with the Champion category will control a market share of around 30-40% of the total market share in that market segment. In the future, the company will become the market leader and go-to company in Indonesia.
2. Focus
At the Focus level, two to three companies are involved in each market segment. Some of the companies involved have special abilities to compete in the same market. Each company in the Focus category will control a market share of around 20-30% of the total market share in a market segment.
3. Common
At the Common level, four to five companies are involved in each market segment. This market is a significant segment where all companies are needed for national development.
Each company in the Focus category will control a market share of around 10-20% of the total market share in a market segment.
4. Opportunistic
On an opportunistic level, almost any company can be involved in every market segment.
Each company in the Opportunistic category will control a maximum market share of 10%
of the total market share in a market segment. Companies sometimes tend to take up this market segment under certain circumstances.
With the classification of the four levels that have been set, the Ministry of SOEs will determine which company to be directed to become a particular market leader. Based on the analysis results from the Ministry of SOEs, considering the existing factors owned by the company as described in Table 1.2, resulting in the division of market segments for each company involved in the Building EPC Champion program. The Grouping of Market Segments in Each Infrastructure Cluster Company can be seen in Table 1.5. There are five sectors with 12 market sectors that are the market coverage of companies in the Building EPC Champion program. Each of the six companies has at least one market segment that will become a market priority. Several companies have two priority markets segments, such as PT. Waskita Karya (Persero) Tbk with water infrastructure and airport market segments, PT.
Pembangunan Perumahan (Persero) Tbk with seaport and power market segments, and PT.
Wijaya Karya (Persero) Tbk with the industrial sector has two market segments, namely industrial plant, and metal & mining.
Table 1.5 Market Segment Grouping in Each Infrastructure Cluster Company.
Sector Segment
Building Residence &
Commercial
Infra
Road &
Related Buildings Champion
Water
Infrastructure Champion
Dams Champion
Rail &
High-Speed Railway Champion
Seaport Champion
Airport Champion
Power
Power &
Renewables Champion
Power (specialized) Transmission Coal-
Fired
Industrial Industrial Champion
Metal & Mining Champion
Building
Material Precast
Note: Champion Segment ; Focus Segment ; Common Segment
(Source: BCG Analysis Report for the Ministry of SOE’s)
1.2. Company Profile
PT. Wijaya Karya (Persero) Tbk is one of the companies under the Ministry of State-Owned Enterprises. WIKA's primary business is in the service sector, concentrated in the construction and infrastructure sector. WIKA was formed by the nationalization process of a Dutch company named, Naamloze Vennotschap Technische Handel Maatschappij en Bouwbedijf Vis en Co. or NV Vis en Co. According to Government Regulation No. 2 / 1960 and Minister of Public Works and Electric Power Decree No. 5 dated March 11th, 1960, Perusahaan Negara Bangunan Widjaja Karja. The first significant growth was in 1972, when Perusahaan Negara Widjaja Karja was changed to PT Wijaya Karya. WIKA then expanded into a construction contractor by handling essential projects, such as installing electricity grids at Asahan and the Jatiluhur irrigation project.
A decade later, in 1982, WIKA underwent expansion with the establishment of several new divisions, such as Construction Civil Division, Building Division, Housing Facilities Division, Concrete, and Metal Products Division, Industrial Construction Division, Energy Division, and Commerce Division. Many projects were being handled simultaneously,
including the LIPI Building, Bukopin Building, and construction and Irrigation Project.
Moreover, with the progressive growth of its subsidiaries in the industrial construction sector, WIKA has transformed into an integrated and synergetic infrastructure company. WIKA's personnel expertise in the construction industry has pushed the Company to further explore various business areas by establishing its subsidiaries to become independent business ventures specializing in creating their respective products. In 1997, WIKA established its first subsidiary company, named PT. Wijaya Karya Beton, reflecting how fast the Concrete Division grew in WIKA.
The more a company expanded, the higher level of public trust in the Company's capability.
These reflect WIKA's achievement on committing to Initial Public Offering (IPO) on October 27th, 2007, in Indonesia Stock Exchange. On that occasion, WIKA releases 28,64 percent of shares to the public; thereby, the Indonesian Government holds 68,42 percent shares, and the public owns the rest includes WIKA employees, through Employee/Management Stock Option Program (E/MSOP) and Employee Stock Allocation (ESA). In the meantime, expansions of division action to be independent subsidiaries are continuing. Entering 2020, WIKA is facing a changing business environment with even more significant challenges.
Likewise, the challenge of surviving the Covid-19 pandemic, which has made the infrastructure industry unstable. For this reason, WIKA has prepared a new vision, which is to keep trying to be one of the best-integrated EPC and Investment companies in Indonesia.
This vision believes in providing direction to all levels to achieve more optimal, healthy, and sustainable growth.
1.2.1. Vision, Mission, Value
For the sake of sustainable growth, where PT. Wijaya Karya (Persero) Tbk. has been established for more than fifty years, it is a success story that reflects the high commitment and hard work of its workforce. Entering the 21st century, WIKA strives to improve its performance in all aspects, from Management, Human Resources to more structured innovation and technology. For more targeted business growth, the company has a vision, mission, and values that are applied in all business lines to ensure the company can develop sustainably.
1. Company Vision 2030
“Leader in Sustainable Investments & EPC for Better Quality of Life”.
2. Company Mission 2030
1) Deliver integrated & sustainable EPC services and products based on excellent Quality, Safety, Health & Environment principles,
2) Ensure sustainable growth through an intelligent investment portfolio, 3) Provide integrated area development for a better living to society, 4) Provide collaborative services beyond stakeholder's expectations,
5) Establish footprints worldwide through innovative and advanced technology, 6) Implement learning & innovation culture in order to intensify global competencies, 7) Enhance local value over leadership practices to build holistic well-being.
3. Company Value
In order to actualize the role of State-Owned Enterprises as engines of economic growth, social welfare accelerators, job providers, and talent providers, it is necessary to transform the Human Resources of State-Owned Enterprises, one of which is through the determination of Core Values. Human Resources of State-Owned Enterprises as the identity and glue of work culture that supports sustainable performance improvement.
Therefore, WIKA adopts and optimizes company values based on the principles of:
1) TRUSTWORTHY : Uphold the trust given,
2) COMPETENT : Continue to learn and develop capabilities, 3) HARMONIOUS : Mutual care and respect for differences,
4) LOYAL : Dedicated and prioritizing the interests of the Nation, 5) ADAPTIVE : Innovate and be enthusiastic in driving or facing change, 6) COLLABORATIVE: Build synergistic cooperation.
1.2.2. Organization Structure
Human Capital Development Strategy starts from the organization structure adjusted with the company's development road map and develops its human capital's competency to support its growth. The main organizational structure of the company has 6 Directorates along with 18 divisions. WIKA's six main directorates are the Directorate of Finance, Directorate of Human Capitan & Development, Directorate of Quality, Health, Safety & Environment, Directorate of Operation 1, Operation 2, and Operation 3. Each of these directorates is also responsible for the direction of business performance in each subsidiary. To ensure that corporate governance runs according to applicable procedures and standards, WIKA has an Internal Audit Unit. The WIKA Holding organizational structure is depicted in Figure 1.5.
Figure 1.5 PT. Wijaya Karya (Persero) Tbk Organizational Structure.
(Source: Company Document, 2020)
Management of PT. Wijaya Karya (Persero) Tbk is led by a President Director. The Board of Directors is the leader in a unit with a particular field of expertise. The following is an explanation of the duties and functions of each managerial directorate in WIKA.
1. President Director
The President's Director's primary function of the Board of Directors is to collaborate with the Board of Directors to carry out the company's objectives. The Board of Directors serves as the company's representative to represent the company and carry out, manage, and direct the company's activities. The Board of Directors is also responsible for managing the company's resources. The Board of Directors also carries out their duties following applicable laws and the provisions of the company's articles of association.
2. Finance Director
The finance director has responsibility for the company's financial performance. The function of this financial director is also responsible for making the company's financial statements and overseeing the company's financial statements. Formulating a strategy to increase the company's financial growth is also a crucial function. It is mitigating risks that may harm the company and hinder the company's financial growth.
3. Human Capital and Development Director
The Human Capital Division is responsible for managing and controlling human resources' planning and fulfillment functions, career planning, optimizing placement, coaching and developing competencies, industrial relations, and controlling business costs at the Division level.
In addition, the primary function of the Human Capital Division is to as a strategic business partner in the Company who can assist in identifying and meeting the needs of the Organization in developing business. WIKA's Human Capital Department consists of four Corporate Human Capital Departments (Organization Development Department, Talent Management Department, WIKA Center of Excellence Department, and Recruitment and Rewards Department) and the Human Capital Desk Sub Division, which is responsible for the management and Human Capital in the Directorate who are responsible for carrying out its business processes.
4. Quality, Health, Safety, and Environment Director
The primary function of the QHSE Director is to carry out the planning, implementation, and supervision of work and work safety in every work unit of the company. The quality of work, occupational health, work safety to the environment that intersects with the company is the responsibility of the QSHE Director.
5. Operations Director 1
The operational director is the person who is responsible for all the company's operational activities in the designated region. His responsibilities start from the planning process to operational implementation. In Director of Operations 1, the managed business units are everything in the infrastructure sector in all areas of the company's operations in the Indonesian market.
6. Operations Director 2
An operational Director is a person who has responsibility for all the company's operational activities. This includes the planning process to operational implementation. In the Director of Operations 2, the managed business units are everything from the Industrial Plant sector to Power and Energy. Engineering, Procurement, Construction, and Commissioning (EPCC) is also part of the Director of Operations 2.
7. Operations Director 3
An operational Director is a person who has responsibility for all the company's operational activities. This includes the planning process to operational implementation. In Director of Operations 3, the managed business units are all things in the Building sector, and all businesses are located overseas.
8. Internal Audit Unit
The Audit Committee is a supporting body of the Board of Commissioners that assists in the supervisory duties and responsibilities related to the financial reporting process, internal control system, the audit process, GCG implementation, and monitoring the compliance with applicable laws and regulations in the Company
The main task of the Internal Audit Unit is to test and evaluate the implementation of internal control and risk management systems following company policies. Provide improvement suggestions, and objective information about the activities examined at all levels of management. The Company has implemented an independent audit process on the presentation of the annual financial report. This process is expecting to become a basic report that reflects the Company's performance that the management has carried out.
9. Corporate Secretary
The Corporate Secretary is a corporate governance organ that plays a significant role as a Compliance Officer who assists the Board of Directors in implementing Good Corporate Governance (GCG) principles and complying with the provisions of GCG practices. The Corporate Secretary is also directly responsible to the President Director and is tasked with carrying out the mission to support creating a consistent and sustainable good corporate image through the management of effective communication management programs to all stakeholders. The Corporate Secretary Duties and Responsibilities include:
a) Formulating and consolidating the short-term and long-term plans, Company policies, principal policies, Corporate Secretariat budget.
b) Coordinating the Company's publicity, internal and external communications, protocols, promotions, and application of customer service standards.
c) Developing and building communication with investors, regulators, and other relevant institutions.
d) Implementing, managing, and controlling general activity plans/realization including professional memberships, associations, clubs, Company-owned assets documentation, management of buildings, vehicles, utilities, cleanliness, and Board of Directors/Board of Commissioners accommodation.
e) Administering services, assistance, advice, support, and audits (Support, Assist, Service, Advice and Audit) in all Corporate Secretariat work units.
f) Administering, including but not limited to monthly, semester, and annual reports following the scope of its responsibilities.
g) Preparing a successor cadre (succession) for one level below.
1.2.3. Scope of Business
WIKA's largest shareholder is the Republic of Indonesia with 65.05%, and the other shareholders are public with 34.95%. WIKA has seven subsidiaries with a particular concentration of expertise specifications in carrying out this enormous business scope. PT.
Wijaya Karya Beton Tbk. is part of expanding a company that specializes in the precast concrete industry. PT. Wijaya Karya Gedung focuses on building a business such as office towers, apartments, hotel condominiums, shopping centers, educational facilities, and other commercial buildings.
PT. Wijaya Karya Industri Konstruksi specializes in energy conversion business units engaged in solar-cell and other conversion products. PT. Wijaya Karya Rekayasa Konstruksi focuses on managing construction and fabrication work, including mechanical, electrical, and operation and maintenance. PT. Wijaya Karya Realty focuses its business on realty and property development, including consulting, planning, construction, and landscape services.
PT. Wijaya Karya Bitumen is a subsidiary that focuses on the asphalt industry on Buton Island. While PT. Wijaya Karya Serang Panimbang is a toll road operator in Banten Province with a length of 83.67 Kilo meters. The size of WIKA's integrated business scope can be seen in Figure 1.6 regarding the details of the company's portfolio.
Figure 1.6 PT. Wijaya Karya (Persero) Tbk Business Portfolio.
(Source: Company Document, 2020)
1.2.3.1 WIKA Business Lines
WIKA's business activities are focused on optimizing seven business lines. With product diversification offered by each business line, WIKA excels in seizing every opportunity in the market. In detail, WIKA's line of business is shown in Figure 1.7. The seven business lines of WIKA simultaneously target the ten market segments in Table 1.3, and there is no limit in penetrating these markets. This freedom in finding market goals is what makes WIKA continue to grow and experience significant growth in its market share.
Figure 1.7 PT. Wijaya Karya (Persero) Tbk Business Lines.
(Source: Company Document, 2020)
1.2.3.2 WIKA Business Flow
Diversified business lines upstream have strengthened the synergy of WIKA’s business.
Aside from being capable in upstream businesses, WIKA is also highly competent in Construction & EPCC (midstream) with strong support from its downstream industry services, as shown in Figure 1.8. The strength of WIKA lies in the collaboration between its businesses that rely on and support one another.
Figure 1.8 PT. Wijaya Karya (Persero) Tbk’s Business Flow.
(Source: Company Document, 2020)
1.2.3.3 WIKA Product and Services
WIKA is an integrated construction company with seven main business lines. The market segments targeted by WIKA include construction and derivative projects involving the Government and the private sector. WIKA's products and services include:
1) Infrastructure and Buildings
This business line consists of business fields of civil construction and building construction services. The market segments targeted by WIKA include high-tech and national-scale civil and building construction projects. The civil construction sector oversees several sub-business sectors, including construction facilities and infrastructures such as roads, bridges, irrigation, and transportation infrastructure. This work involves being a contractor and includes the design and build from the planning process to the construction process. Meanwhile, the building construction sector includes the construction of housing and public facilities. WIKA's building construction sector designs and builds from the planning process to the construction process. The residential building construction services sub-business includes the construction of apartments, condos, hotels, flats, and housing complexes.
2) Energy and Industrial Plant
The energy business sector managed by the Department of Power and Energy Construction Engineering and WIKA includes EPC (Engineering, Procurement, and Construction) services in the electricity sector. This line of business consists of the Energy and Industrial Plant business fields. WIKA has produced various power plants, including steam power plants (PLTU), gas power plants (PLTG), hydroelectric power plants (PLTA), and diesel power plants (PLTD). The Industrial Plant business sector focuses on constructing a processing plant, which consists of building facilities, a series of machine facilities, equipment, and other supporting facilities. The scope of work usually consists of a production process converted from raw materials to final products, such as Alumina Ferronickel Plant, Cement Factory, CPO Factory, Sugar Factory, Steel Factory, Copper Smelting Plant, and NPK Granulation Plant. WIKA's competence in this business sector includes the oil and gas sector. WIKA produces several oil and gas facilities, including pipelines, tank terminals, gas processing facilities, and refineries. The Ministry of SOEs considers this line of business as a market priority that the company will specialize in. In the future, the industrial plant business line is expected to have a high market share and provide good benefits for the company.
3) Industry
The Industrial business line supports WIKA's core competency pillars. In this line of business, it is grouped into three parts, namely precast, industrial, and bitumen, all of which support the company's construction activities, such as:
a) Precast: Precast concrete products, such as PC Polishing, PC Piles, Railway Sleeper CP, Bridge Concrete, Sheet Pile, PC Pipes, RC Box Culvert, Marine Structure CP, HCS, PC Cylinder, and Rigid Pavement Fabricated.
b) Industrial: steel fabrication by producing steel construction products, casting, steel frame structure, conveyor, pipe rack, telecommunication tower, electricity transmission tower, steel frame bridge, steel tank, silo, hopper, pressure vessel, welded beam, and other steel plate work and aluminium casting and plastic injection.
c) Bitumen: granular asphalt, extraction asphalt.
4) Realty and Property
WIKA is committed to presenting quality and ideal properties in various market segments through the Realty and Property business lines. This line of business is a mainstay in maximizing broad opportunities, such as the development of new cities and Government programs to fulfill housing needs in the community. Through its subsidiary, WIKA Realty, it has succeeded in developing the flagship product, Tamansari, a brand of residential and apartment residential areas spread across several regions in Indonesia. In addition to building construction, WIKA can also control the operational services of apartments and post-construction properties.
5) Investments
As one of the strategies to create a more stable business in the future, WIKA is increasingly actively conducting investment activities. Through the investments carried out, the Company wants to enlarge the recurring income portion. Investments made by the Company cover various sectors such as infrastructure, energy, transportation, and regional development. In carrying out these investment activities, the Company is also affiliated with several other companies to obtain a more significant investment portfolio.
6) Construction Engineering
This business line is one of the Company's EPC and Operation & Maintenance motorcycles. The scope of work carried out by WIKA in this line is relatively complex, including EPC and industrial power plants, including their operation and maintenance. The
scope of work is to support work in the industrial scope, such as erection, installation, mechanical, piping, and electrical EPC power plant work. The scope of work of this business unit can assist the holding in carrying out specific industrial work.
7) Integrated Transportation
System Integrated Transportation System (ITS) is the latest business line developed by WIKA to optimize the market opportunity of two megapolitan cities in Jakarta and Bandung by implementing fast future train transportation modes and developing Jakarta- Bandung corridor economic centre. When the Jakarta-Bandung Rapid Train is completed, the mobility of Jakarta - Bandung and vice versa is predicted to change. The community will only need 35 minutes to go to each of these cities. In addition, the presence of ITS will also stimulating the birth of new cities with adequate infrastructure to become a business-centre, residential area, centre of Government, education, and tourism that is in the public interest. This business line is expecting to provide added value for new growth areas and contribute to sustaining the national economy.
1.2.3.4 WIKA Operation Area
Within the scope of its operational area, WIKA does not only penetrate the domestic regional business. WIKA also carries out its international corporate strategy to support the company's vision to become a Leader in Sustainable Investments & EPC. Since 2007 the company has tried to penetrate the global market, especially in the infrastructure and building segments.
Until now, in 2021, WIKA has 15 Branch Offices, and 161 Project Offices spread across 12 countries such as Indonesia, Timor Leste, Malaysia, Philippines, Taiwan, Myanmar, United Arab Emirates, Saudi Arabia, Niger, Algeria, Senegal, and the Solomon Islands. An overview of WIKA's operational locations can be seen in Figure 1.9.
Figure 1.9 PT. Wijaya Karya (Persero) Tbk’s Business Operation Area.
(Source: Company Document, 2020)
1.3. Business Issue
Every government policy, including the Building EPC Champion program as a technical program to achieve the ultimate goal of forming this holding, must have advantages and disadvantages. To address this, every company, including PT. Wijaya Karya (Persero) Tbk must conduct a comprehensive marketing strategy analysis before implementing the program.
Changes in market segments instructed by the Ministry of SOEs must be analyzed more deeply as a form of adaptation to the company's business. Based on the results of the analysis of the Ministry of SOEs on the six companies participating in the Building EPC Champion Program, PT. Wijaya Karya (Persero) Tbk become a champion in the Industrial sector market segment, including the Industrial and Metal and Mining markets. SOE’s Ministry decision- making considers the five factors on historical revenue & confirmed pipeline, investment value, resources, market reputation, and track record of execution.
Table 1.6 WIKA's Market Segment Category in the Building EPC Champion Program.
Sector Market
Segment
WIKA’s Market Segment Category
Market Share
Compan y Involved Building Residence & Commercial Focus 20-30% 2-3
Infra
Road & Related Buildings Common 10-20% 4-5
Water Infrastructure Common 10-20% 4-5
Dams Common 10-20% 4-5
Rail & High-Speed Railway Focus 20-30% 2-3
Seaport Focus 20-30% 2-3
Airport Opportunistic 0-10% 5
Power Power & Renewables Focus 20-30% 2-3
Power (specialized) Opportunistic 0-10% 5
Industrial Industrial Champion 30-40% 1
Metal & Mining Champion 30-40% 1
Building
Material Precast Focus 20-30% 2-3
(Source: BCG Analysis Report for the Ministry of SOE’s)
As described in Table 1.6, based on the Ministry of SOEs to place WIKA as the Champion in the Industrial sector, the company's business will inevitably have a portion of 30-40% market share for the future the Industrial sector. WIKA is still allowed to enter the market segment with the Focus Segment category in the Building, Rail & High-Speed Railway, Seaport, Power & Renewables, and Building Materials segments with a market share of 20-30%. For the Common Segment category, WIKA can participate in the Road & Related Building, Water Infrastructure, and & Dam segments with 10-20% market share. With a government policy implementing the Building EPC Champion Program, WIKA should measure its ability to dominate the industrial market and reduce the market share in the infrastructure and building segments. The main issue that is of particular concern to WIKA is the assessment from the Ministry of SOEs that currently reflects WIKA's actual condition to become a leader in the industrial market. For this reason, it is necessary to look at the company's historical data regarding market growth that WIKA has owned.
Figure 1.10 New Contract per Market Segment from January to June 2021.
(Source: Company Document, June 2021)
Referring to WIKA's new contract acquisition in each of its market segments as of January to June 2021, as shown in Figure 1.10, the growth of the infrastructure and building market has a more significant acquisition of new contracts than the energy & industrial plant segment. It was recorded that until the end of the semester in June 2021, the infrastructure and building segments received new contracts of 6,538 billion IDR, while the energy & industrial plant
