Against the backdrop of stagnant macroeconomic environment, Waskita was able to record good operational performance and project completion in 2019. This success led the Company to achieve positive financial performance with a number of plans and targets set at the beginning of the year that have been met.

Dear Respected Shareholders and Stakeholders,

Inspired by Waskita’s sustainability commitment in realizing its vision of becoming a “Reliable and Sustainable Indonesian Company in the Field of Integrated Construction and Investment”, we continuously strive to run the management of the Company which is oriented towards optimizing its capacity and capabilities and strengthening the implementation of clean, healthy, and compliant corporate principles to the prevailing rules and provisions. For the achievements throughout 2019,the Board of Directors feel proud to be able to carry out our strategic role to realize the targets and plans that have been set despite economic conditions that were faced with numerous challenges.

All of those achievements are our concrete evidence in realizing added value for stakeholders.To fulfill our responsibilities towards the loyalty and trust that has been given by stakeholders, please allow us to represent the Company’s management to submit report on highlights and recapitulation of the Company’s performance throughout 2019 fiscal year.


Uncertainty of global economic conditions and geopolitical tensions that surrounded 2019 provide negative sentiment towards global economic growth, which until the end of 2019 showed an indication of a slowdown at the level of 2.4% based on the World Bank’s review in its report titled “Global Economic Prospects: Slow Growth, Policy Challenges”. The phenomenon of trade war and monetary and fiscal policies that are not yet fully favorable have weakened the manufacturing sector and trade volume in a number of developed countries. These indications caused a domino effect on a group of developing countries which was predicted to experience a slowdown in economic growth of 3.5%, lower than that of 2018 at 4.5%.

The sluggish trend in the global macro environment also affected the national economic conditions in 2019. Statistics Indonesia (BPS) reported that the realization of Indonesia’s economic growth in 2019 was at 5.02%, lower than that of 2018 at 5.17% and not yet able to meet the target set in the 2019 state budget of 5.3%.

Although showing indications of a slowdown,Indonesia’s economic growth in 2019 was still supported by maintained domestic demand and stability of household consumption which grew by 5.04%. These conditions led to healthy investment growth at the level of 5.37%, improved compared to that of 2018 of 5.41%.

National inflation rate was maintained at 2.72%, lower than that of 2018 which was recorded at 3.13% however still within the BI target limit of 3.5±1%. The stability of the inflation rate was supported by the balanced supply and demand, stability of the Rupiah exchange rate, and the maintained expectations of prices in the upcoming year.

Even though the macro environment conditions were not yet fully favorable,the condition of the construction industry has been able to grow steadily thanks to the Government’s seriousness that still places equitable infrastructure development as one of the development priorities, as stated in the 2015-2019 National Medium-Term Development Plan (RPJMN). The Government has established 223 National Strategic Projects and 37 Priority Projects spread throughout Indonesia with a total investment value of over Rp2,500 trillion.

The Government’s priority in supporting infrastructure development was also reflected in the allocation of infrastructure development funds as the highest budget in the 2019 State Budget (APBN) of Rp415.0 trillion. The number grew 1% compared to the allocation of infrastructure funds in 2018 at Rp410.7 trillion.

BCI Asia through its report titled Indonesia Construction Market Outlook 2019 stated that the market share of construction projects (buildings and civil infrastructure) in 2019 grew 2.02% from 2018. Growth of this market share is projected to continue until 2020 with an estimated achievement of Rp306.20 billion, with a 45% share coming from civil infrastructure and 55% from the building sector.


Waskita’s Support for the Acceleration of National Strategic Project Development (PSN)

The Company as part of the BUMN Karya entity has won the trust to complete infrastructure development with the status of the National Strategic Project (PSN) in various sectors, including toll roads,dams,ports, and a number of other strategic infrastructures in the integration of accelerated equitable development as stipulated in the National Mid-Term Development Plan (RPJMN) 2020 - 2024.

Throughout 2019,the Company completed a number of toll road construction projects in several sections that were inaugurated by the President of the Republic of Indonesia, including Bakauheni - Terbanggi Besar toll road on January 21, 2019, Pasuruan - Probolinggo toll road on April 10, 2019, Terbanggi Besar - Kayu Agung toll road (189 km) on November 15, 2019, Kunciran - Parigi toll road on December 6, 2019, and Jakarta - Cikampek toll overpass as the longest elevated toll road in Indonesia (36 km) on December 11, 2019.

In addition,the Company is currently continuing the construction of the Jakarta Outer Ring Road (JORR) II Cibitung - Cilincing, Cimanggis - Cibitung, and Serpong - Cinere toll roads, plus the south-side Jakarta - Cikampek toll road. In the East Java region, Waskita was trusted to work on Krian - Legundi - Bunder - Manyar toll road. In addition to Java, the Company was also trusted to work on a number of toll road projects in Sumatra, including Kayu Agung - Palembang - Betung toll road,KualaTanjung -TebingTinggi - Parapat in the North Sumatra region.

The scope of the Waskita toll road construction area which also include other regional areas aside Java Island is aimed accelerating more equitable and inclusive development in a number of other strategic areas in Indonesia so that the economic benefits can be felt by the entire community. For instance,Trans Sumatra toll road which cuts travel time from 12 hours to around 6 hours. Shorter travel time gives added value to the efficiency of time, fuel, and the quality of shipped commodities.

In addition to the toll road, the Company has completed projects for the transportation sector in 2019, namely the Belawan Port project in North Sumatra which was inaugurated on March 17, 2019. Other transportation sector projects that have been successfully completed include Juanda International Airport in Surabaya, Depati Amir Airport in Pangkalpinang, Minangkabau International Airport in West Sumatra, and the development of the Jatinegara - Manggarai Double Track railway in Jakarta.

Furthermore, in the water resources sector, the Company has completed the construction of the Gondang dam in Central Java which was inaugurated by the President of the Republic of Indonesia on May 2,2019 and Kamijoro Dam in Central Java which was inaugurated on December 31,2019.The Company is currently continuing other water resources projects, such as, Tapin Dam in South Kalimantan, Way Sekampung Dam in Lampung, Rukoh Dam in Nangroe Aceh Darussalam, Leuwikeris Dam in West Java, Karian Dam in Banten,Tiga Dihaji Dam in South Sumatra, Jlantah Dam in Central Java, Bener Dam in Central Java, Temef Dam in East NusaTenggara, and Margatiga Dam in Lampung.The presence of the dams have provided benefits to the community as a source of hydroelectric power, irrigation sources, clean water sources for the community, and flood control.

In the electricity sector, Waskita is currently building a 500 kV capacity transmission in Sumatra which stretches 395 km from New Aur Duri to Perawang.The project, which began in 2015, is targeted to be completed in 2020 with a contract value of Rp6.1 trillion. Moreover, the transmission construction is continued from New Aur Duri in Jambi to Muara Enim in South Sumatra. In addition to the Sumatra region, the Company is also working on transmission projects in Kalimantan, including Sangatta - Maloy in East Kalimantan. The construction of this project was carried out to support the electrification equalization program in Sumatra and Kalimantan. Waskita’s participation in encouraging the acceleration of infrastructure development is expected to be able to turn on the distribution of electricity sources to all corners of Indonesia.

The Company also had the opportunity to complete several public facility building projects mandated by the Government, including the Aquatic Stadium in Papua, the revitalization of the Ragunan Sports Center, as well as the renovation of the Istiqlal Mosque in Jakarta. The apartment and hotel project plans that will also be completed in 2019 include Bandung and Makassar Teraskita Hotels and the Nines Apartment in Serpong

Financial Performance
Against the backdrop of stagnant macroeconomic environment, Waskita was able to record good operational performance and project completion in 2019. This success led the Company to achieve positive financial performance with a number of plans and targets set at the beginning of the year that have been met.

Total Assets of the Company on balance sheet amounted to Rp122.59 trillion, decreased by 1.45% or equivalent to Rp1.80 trillion of the realization of Total Assets in 2018 at Rp124.39 trillion. The decrease was accompanied by the decrease in Liabilities which as of December 31, 2019 was recorded at Rp92.47 trillion, down 2.13% compared to the previous year’s Total Liabilities at Rp95.50 trillion. Total Equity increased by 0.08% from Rp28.89 trillion in 2018 to Rp29.12 trillion in 2019.

Revenues of the Company in 2019 were recorded at Rp31.39 trillion, decreased compared to that of 2018 at Rp48.79 trillion. Such increase impacted Profit for the Year which as of December 31, 2019 decreased by 77.73% from Rp4.62 trillion in 2018 to Rp1.03 trillion in 2019.

The Company strives to continue to even strengthen its excellence in generating better performance and achievements in the following years. The Company managed to win a new contract value of Rp26.08 trillion in 2019 with the number of auctions won showing an increase from 17 packages in 2018 to 31 packages in 2019.

Strategies and Policies
The dynamics and fluctuations in the macroeconomic and industrial environment are one of the factors that are closely watched as well as assumptions that influence management considerations in making decisions and formulating strategic plans at the beginning of the year. In order to anticipate the impact, the determination and implementation of the Company’s strategic policies are always accompanied by efforts to increase accuracy and prudence in every decision.

Welcoming business outlook and business potential in 2019, the Company has established a number of initiations and strategic policies in comprehensive business aspects. The divestment of the Solo - Ngawi and Ngawi - Kertosono - Kediri toll roads which was successfully implemented in 2019 opened opportunities for the Company to develop alternatives and financing capabilities that will be utilized to make other new toll road investments.

Strengthening external market share in the national and international scope and supported by investment from subsidiaries serve an initiation oriented towards increasing the acquisition of new contract values in 2019.

Strategic steps and policies in achieving stronger profitability are supported by the implementation of technology-based innovation in the business activities and processes. Not only supporting cost efficiency, this strategic initiative also strengthens the operational competitiveness of the Company in the aspect of updated information systems for effective and efficient business processes and models. The technology-based initiatives that have been implemented include supply chain management systems in supply chain management, Building Information System (BIS) in architectural and construction planning, and SAP S/4 HANA on business control in the project environment in real time and integrated.

On the financial aspect, the Company seeks to speed up the collection of termin on projects worked on with turnkey scheme and receipt of land bailout refunds.This strategic effort is expected to improve the Company’s receivables collectability ratio to maintain the balance and availability of the Company’s funds in completing its projects.To strengthen the financing performance, the Company developed investment capacity, particularly investment in the property and non-toll road infrastructure sector to increase the portion of recurring income generated from these investments.

In an integration of the Company to become an industry leader in the construction industry, the Company focuses on developing a culture of compliance that is accompanied by the adequacy of an integrated business system.To realize these goals, management evaluates the implementation of corporate governance as a mechanism capable of ensuring a clean, compliant, and healthy business climate. Evaluation and development of the adequacy of risk management has been carried out with due regard to internal and external risk profiles. Bearing in mind the economic and industrial conditions that are moving dynamically, the Company aims to increase its Enterprise Risk Management score to 5 (leading). The KPKU score increase was also carried out in the integration of the Company to become an industry leader armed with the existing integrated system, including Waskita Employee Self-Service Technology (WEST), Go Live SAP S/4 HANA,Vendor Management System, and Building Information Modeling (BIM) on all projects integrated with SAP.

Comparison between Achieved andTargeted Results
Armed with a strategy to strengthen a compliance culture and the readiness of an integrated system towards the vision and mission, the Company is able to realize the targets set in the 2019 Corporate Work Plan and Budget (RKAP). The number of new contracts reached Rp26.08 trillion or realized 58.55% of the target of Rp44.55 billion.

Other targets set in the RKAP include the 2019 sales target at Rp31.39 trillion or realized at 66.91% of the target of Rp46.91 trillion,resulting in a total net profit for the year at Rp1.03 trillion or realized at 33.63% of the target of Rp3.06 trillion.

Based on the comparison between the target and the realization, the Company re-mapped the factors that influence the achievement of the target and formulated an improvement strategy by considering the obstacles and challenges. By taking into account the Company’s business prospects in the future, specifically the prospect of potential toll road construction, as well as internal and external assumptions, the Company has prepared the 2020 Corporate Work Plan and Budget (RKAP) as an orientation for management in scoring performance and achievements in 2020.

Comparison between Target and Realization

Description RKAP 2019 Realization 2019 Achievement (%)
Revenues 46,908,037 31,387,390 66.91%
Profit for the year 3,059,270 1,028,898 33.63%
Total Assets 137,262,944 122,589,259 89.31%
Contract Value 44,546,478 26,081,700 58.55%

The phenomenon of industrial development in the midst of the Industrial Revolution 4.0 requires the Company not to be easily satisfied with the performances and achievements. The dynamics and challenges faced by the Company have encouraged the Company to continue to improve and innovate, including to increase efficiency in the business processes of the construction industry, preparation of competent and highly competitive Human Capital, adequate data readiness and adequate information technology tools, and improve the quality of production.

In accordance with the transformation initiatives by the Company, management seeks to address challenges related to efficiency needs through the implementation of integrated business systems and processes. The Company has applied a number of technologybased innovations, including the application of Supply Chain Management System, Building Information Modeling (BIM), and SAP S/4 HANA which aims to produce work methods that are more efficient but remain competitive.

In responding to the challengesto the needs of competent,reliable, and highly competitive human capital, the Company conducted a comprehensive evaluation on Waskita’s Human Capital readiness. In addition to reorganizing the Company’s organizational structure to adjust management functions to the dynamic needs of the Company, in 2019 the Company also increased the portion of HC that is certified and generate construction experts who are adaptive to digitizing construction services. Regeneration of the balance of the amount of human capital is also carried out to prevent wide gap between low, middle, and top management.


The World Bank predicted global economic growth to rise,though insignificantly, to 2.5% in 2020 and 2.6% in 2021. The projected increase was based on indications of reconciliation between the United States and China to stop the trade war through an early Phase I agreement.

In line with global economic growth which is expected to increase in the coming year, the Government of Indonesia targets economic growth in the range of 5.45% - 6.0% as stipulated in the 2020-2024 National Medium-Term Development Plan (RPJMN).

The government is committed to continuing its focus on equitable development and economy throughout Indonesia. This commitment is reflected in the infrastructure budget which increased by 5.9% in the 2020 APBN to Rp423.3 trillion from the previous Rp399.7 trillion.

In line with the projection, in the future Waskita will continue to focus on completing the construction contracts that have been obtained, including the Cibitung - Cilincing toll road,the Cimanggis - Cibitung toll road, the 500KVA transmission construction, and other projects. In addition, the Company will also continue its strategic role as a State-Owned Enterprise in supporting the distribution of infrastructure development in accordance with the direction of development set by the Government.

The business prospects targeted by the Company in the upcoming years are as follows:

  1. Toll Road
    Potential development of the toll road sector in Indonesia in the following years is still very prospective. This is in accordance with the development plans set by the Government in 2019-2024 where infrastructure development in Indonesia will continue, one of which is reflected in the target of developing 2,500 km of toll roads.
  2. Non-Toll Road
    The potential construction of the non-toll road sector is supported by the need for strategic road construction, maintenance/rehabilitation and improvement of national roads, construction of roads in priority areas, as well as construction of transportation node access roads that must be fulfilled in the coming years
  3. Port
    Construction opportunities in the port sector are driven by the increasing need for pioneer routes and goods subsidies, including the development of major sea toll ports (Belawan, Kuala Tanjung, Kijing, Tanjung Priok, Tanjung Perak, Makassar, Bitung, and Sorong), construction of cruise ports, implementation of sea toll subsidies, procurement of sea transportation facilities, and development of shipping information technology.
  4. Airport
    In the coming period, the potential for airport development is projected to increase.This is in line with the Government’s efforts to improve air transportation services and connectivity.
  5. Train
    As the development plan for the 2019-2024 period is set, the Government plans to carry out infrastructure development to realize railways connectivity and increase the integration of Transit Oriented Development (TOD).
  6. Electricity
    One of the National Strategic Projects (PSN) is to improve the connectivity and equity of electricity in Indonesia through increased powerplan and electricity transmission.
  7. Oil Refinery
    Until 2025, the Government plans to develop oil refineries and revitalize the existing oil refineries.
  8. Fuel Storage
    To achieve energy security, the Government will increase fuel production as the Strategic Plan of MEMR, among others, is carried out through the construction of fuel storage facilities.
  9. Oil and Gas Transmission
    Regarding the development of the domestic Gas Network, the Ministry of Energy and Mineral Resources (ESDM) said it would encourage the acceleration of gas network development because it could reduce the dependence on oil and gas imports which are still relatively high in Indonesia at this time.
  10. Smelter
    Government Regulation No. 1/2017 concerning the Fourth Amendment to Government Regulation No. 23 of 2010 concerning the Implementation of Mineral and Coal Mining Business Activities states that holders of Production Contracts of Work and Mining Business Permit are required to carry out processing and smelting in the country before being able to sell abroad. These rules open up opportunities for the construction of mineral processing and refining facilities (smelters) in Indonesia.
  11. Drinking Water Facilities
    Going forward, the Government plans to focus on the development of Drinking Water Provision System in several regions in Indonesia, especially in eastern Indonesia.
  12. Waste Water System
    As of today, there are only 13 cities in Indonesia that already have large-scale Waste Water Treatment Plant (WWTP), namely Medan, Jakarta, Yogyakarta, Bandung, Solo, Balikpapan, Banjarmasin, Cirebon, Denpasar, Batam, Manado, Tangerang, Palembang, and Malang. This opens the potential for the development of WWTP in other regions of Indonesia.
  13. Dam and Irrigation
    The government still plans to carry out integrated multipurpose dam construction and new irrigation networks to support national food security and water supply.
  14. Property
    The housing backlog in the previous year was an opportunity to supply affordable houses in the following years.
  15. Industrial Estate
    The development of industrial estates outside of Java is directed at industries based on natural resources and mineral processing through the development of Industrial Estates (KI) and Special Economic Zones (KEK).
  16. Tourism
    In the tourism sector, the Government’s focus is on accelerating the readiness of 10 Priority Tourism Destination (DPP) consisting of LakeToba, Borobudur, Lombok/Mandalika, Labuan Bajo, Bromo Tengger Semeru, Wakatobi, Tanjung Kelayang, Tanjung Lesung, Kepulauan Seribu and Kota Tua Jakarta, and Morotai.This potential is increasingly prospective by the development plan of 8 new Priority Tourism Destination.
  17. Transfer of National Capital
    The plan to relocate the New National Capital is divided into three main stages, namely the design of the master plan, the construction of basic infrastructure, and the construction of houses and office buildings through a design-and-build mechanism
  18. Overseas
    The projected development of developing countries in the next 5 years, including in the construction of infrastructure, is an opportunity for the Company to develop the potential of the overseas construction market, particularly in the Southeast Asian region.

Reflecting on the analysis of these potentials and opportunities, management is optimistic that the Company’s business prospects are still well preserved for years to come.


In the integration of strengthening the intended compliance culture, management also underlines the maintenance of the quality and effectiveness of the implementation of corporate governance as a form of accountability and responsibility to stakeholders. Periodically, the Company conducts an assessment of the implementation of governance by taking into account the evaluation criteria set by the regulator. The Company’s GCG assessment scores in 2019 was 88.058 with the “Excellent” predicate. Several recommendations for improvement that have been identified through the GCG assessment have been followed up properly

The Company’s commitment to the implementation of governance that is in compliance with the principles of compliance and healthy and clean corporate is evidenced by evaluating the adequacy of organs, instruments, and adequate infrastructure. In 2019, the Board of Directors approved the renewal of a number of GCG policies and guidelines for the implementation, including changes in organizational structure, updates to the Customer Reporting System (WBS) Guidelines, and other GCG policy tools.

Real support for internal control and compliance functions is realized through the presence of Internal Audit. Internal Audit as a strategic partner for the Board of Directors in carrying out the internal control function and following up on audit findings, both from audits conducted independently by Internal Audit and audits carried out by external auditors and relevant regulators. The Board of Directors encourages the Internal Audit to follow up on any findings in accordance with applicable procedures and to report regularly on the results of the audit to the Board of Directors.

The implementation of GCG best practices succeeded in making the Company to be more trusted by stakeholders, as reflected in the acquisition of a number of awards in 2019, including The Best Indonesia Good Corporate Governance Implementation 2019 from Economic Review,Top Governance, Risk & Compliance (GRC) 2019 and The Most Committed GRC Leader 2019 from Top Business Magazine, Zero Accident from the Ministry of Manpower, and other awards.


The Board of Directors realizes that in the midst of dynamic industrial conditions and the macro environment that is often faced with various conditions of uncertainty requires the existence of a mechanism and application of policies that are able to accommodate the management of risk exposure accompanied by strong and structured mitigation efforts. This understanding is based on the belief that good risk management is able to strengthen the foundation of the Company’s sustainable business continuity. Strategic efforts to mitigate risk are managed in the Company’s Risk Management System.

The implementation of risk management system in the Company’s business environment through Governance, Risk Management,and Compliance (GRC) functions to manage risk comprehensively, is started from the process of identification, assessment of risk levels, mitigation and evaluation of risks that have the potential to disrupt the Company’s activities, to identify business continuity. In implementing these procedures, the Company also takes into account the factors that cause unachieved Company’s goals (downside risk) and risks that can be an opportunity to increase company performance (upside risk). The risk assessment process is not only carried out on operational risk, but also during the strategic decision making process, including when determining project decisions and new investments.

To guarantee the effectiveness of the implementation of risk management, the Company evaluates the implementation of risk management to be periodically incorporated into the risk management report. The results of the evaluation and recommendations become a reference that is considered in the preparation of future risk management plans.

In 2019, the Company has developed an IT-based Risk Management System, namely Waskita Risk Management (WaRM). This development focuses on the transformation of ERM by establishing a strong foundation to support adequate risk management practices. In accordance with its roadmap, the Company focuses on reviewing and updating work policies and procedures, strengthening the organizational structure of risk management, enhancing HR capabilities on risk management, implementing, monitoring, evaluating and continuously improving risk management practices, and developing risk management support tools. Armed with this strategy, it is expected that the Company’s risk maturity may increase.

In this case,risk maturity is not an objective, but rather a tool for the Company to build capacity and capability in risk management by knowing the extent to which risk awareness culture has been embedded in the Company. It also underlies the Company to create a road map for developing a risk awareness culture so that the direction and target of the effectiveness of risk management is able to bring added value to the Company in the present and the future.


Management seeks to optimize all functional elements in the integration of the Company’s goals to become a strong player in the construction industry through overall Human Capital & Infromation Technology. Maintenance of the value of sustainability in human capital management is realized through the preparation of the HCM roadmap as a reference for management in determining the direction of HC policies and management strategies in the next five years. In 2019, the Company entered the Takeoff phase, where management focused on strengthening the implementation and evaluation of the Preparation Phase that was carried out in 2018.

Under the Takeoff Phase which was carried out in 2019, Human Capital began the transformation of its new function into a business partner, in which the HCM strategy was arranged in harmony with Waskita’s grand strategy to become a trusted investment company. In facing this transformation, the Company focuses on optimizing internal capabilities by mapping the required competencies and organizational structures and continuing education, training, and talent development programs and tour of duty for employee.

Other functional elements of the Company, namely the implementation and management of Information Technology also become priorities for management. IT management is oriented towards maintaining efficiency, accuracy, and responsiveness to problem solving and business process success in the midst of increasingly dynamic Industry 4.0 competition. Based on the IT development roadmap that has been carried out, the Company has implemented a number of plans and work programs, including the implementation of ERP SAP S/4 HANA, Identity Management System, and the construction of the Integrated Document Repository Center.

The development of IT as a support for the Company’s operational needs is always accompanied by the optimization of the capacity and competence of HC in the IT field.Throughout 2019, the Company has provided 12 training and development for IT HC competencies, both organized by internal and external parties. Going forward, the Company plans to continue the use and development of IT directed at initiation to welcome the era of Digital Transformation, including providing priority core applications, improving IT supporting infrastructure, collaboration of elements or digital resources, and increasing efficiency and effectiveness of IT business operation.


Construction business activities certainly cannot be separated from the risk of occupational accidents, so the Company focuses on fulfilling the rights and obligations in providing adequate protection for employees from all risks that have the potential to interfere with occupational health and safety. This has been regulated in the Collective Labor Agreement (CLA) between the Company and the Labor Union.

In 2019, management has fulfilled its obligations in supporting occupational health, including through the provision and payment of BPJS Kesehatan on time,the provision of post-retirement health facilities, and the participation of employees in health seminars.

Meanwhile in the aspect of occupational safety, the Company has strived for an Occupational Health Safety Management System (SMHSE) which is oriented to the maintenance of physical safety and health, comfort of the work environment, work productivity and efficiency, and other preventive measures. The forms of implementation that were realized throughout 2019 include the implementation and participation of employees in the OHS training and seminar program,the provision of K3LMP equipment, followup and investigation of every report on accidents occurring in the work environment, as well as mitigation and audit of occupational accidents as regulated in the Waskita Procedure in QHSE.


Waskita strives to balance its interests in profit with its obligations in contributing to preserving the environment and welfare of the community through the implementation of Corporate Social Responsibility and the Partnership and Community Development Program (PKBL) or Small Medium Enterprise & Social Responsibility Partnership Program Unit (SME & SRPP) as mandated by the Government to all SOE entities to encourage a more independent and prosperous community economy.

The Company has applied the new standard stipulated in ISO 26000: Social responsibility on the implementation and reporting of CSR. The ISO standard targets 7 (seven) aspects of sustainability, namely governance, human rights, fair operation, manpower and OHS, environment, social development, and customers. The Company has also participated in mapping efforts to all stakeholders and the generated impacts, both the impacts produced on the Company and the impacts resulting from the Company’s activities. The results of due diligence will then become a reference for the Company to determine relevant issues related to social, economic, and environmental, determine involvement, and develop strategies to target those issues.

According to the performance of PKBL or SME & SRPP in 2019, the Company managed to record the distribution of partnership funds in the amount of Rp5.99 billion with the number of fostered partners as many as 75 partners. The partnership program that is distributed covers a variety of sector backgrounds, including industry, services, trade, fisheries, plantation, agriculture and animal husbandry, while the environmental development program was realized in the amount of Rp33.33 billion by targeting relevant social issues, including natural disasters, education and training, health improvement, development of public facilities and infrastructure, religious facilities, nature conservation, and social community to eradicate poverty.


Throughout 2019, there were changes in the composition of the Board of Directors.

The composition of the Board of Directors for the period of January 1, 2019 to May 9, 2019 are as follows:

Name Position
I Gusti Ngurah Putra President Director
Didit Oemar Prihadi Director of Operation I
Bambang Rianto Director of Operation II
Fery Hendriyanto Director of Operation II
Hadjar Seti Adji Director of Human Capital Management
Wahyu Utama Putra Director of Quality, Safety, Health, and Environment
Haris Gunawan Director of Finance and Strategy

The Resolution of the Annual General Meeting of Shareholders for 2018 Fiscal Year held on May 9, 2019 stated changes to the composition of the Board of Directors, so that the composition of the Board of Directors from May 9, 2019 to December 31, 2019 are as follows:

Name Position
I Gusti Ngurah Putra President Director
Haris Gunawan Director of Finance
Fery Hendriyanto Director of Business Development & Quality, Safety, Health & Environment
Hadjar Seti Adji Director of Human Capital Management & System Development
Didit Oemar Prihadi Director of Operation I
Bambang Rianto Director of Operation II
Gunadi Director of Operation III


We would like to close this report by extending our gratitude to the Board of Commissioners for the recommendations, suggestions, and advices given to support the optimal and comprehensive implementation of good corporate governance. Our gratitude also goes to all Waskita Karya employees for their dedication, hard work, and contribution in driving the Company’s productivity to achieve the vision and mission.

We would also like to express our deepest appreciation to the Shareholders, business partners, regulators, and all stakeholders for the loyalty and trust that supports our strategic role as part of a State-Owned Enterprise (BUMN). Going forward, we are committed to fostering and maintaining harmony that has existed with all elements of the Company in a sustainable manner to achieve common goals.

Jakarta, March 29, 2020

President Director

PT Waskita Karya (Persero) Tbk

I Gusti Ngurah Putra