Indonesia SOE Wijaya and Kobe Set Up Joint Ventu

Ivan Dasa Saputra, Berita Satu - 14/05/2012

A unit of state construction firm Wijaya Karya is teaming up with Komponindo Betonjaya to set up a joint venture to produce concrete blocks.

The joint venture, between Wijaya Karya Beton (Wika Beton) and Komponindo Betonjaya (Kobe), will be called Wijaya Karya Komponen Beton, or Wika Kobe, and will produce precast concrete blocks at a 3.3-hectare industrial estate in Karawang, West Java.

Karawang, about 75 kilometers east of Jakarta, is home to much of the nation’s manufacturing and automotive production.

Wika Kobe will be 51 percent owned by Wika Beton and 49 percent by Kobe, Wijaya Karya said in a statement released on Thursday.

Among other customers, the statement said, Wika Kobe will be a supplier for projects in Indonesia financed by the Japan Bank for International Cooperation, one of the major lenders for Jakarta’s planned mass rapid transit system.

Wijaya Karya is preparing two of its subsidiaries, Wika Beton and Wika Realty, for initial public offerings. Wika Beton is a precast concrete producer and Wika Realty is a property developer.

Kobe is the Indonesian unit of Japan-based Mitsubishi Construction.