Jakarta, CNBC Indonesia – The default effect on the Chinese property company, Evergrande, has begun to have an impact on Indonesia, especially for property and construction companies.
Most noticeable is the rising prices of material goods imported from the country, and raw materials originating from China.
President Director of PT Waskita Karya Tbk (WSKT) Destiawan Soewardjono said some material goods, such as iron, had started to experience a significant increase in prices.
“It’s not yet felt, but it causes some material prices to increase quite significantly. For example iron, this will also have an impact on other materials, especially in addition to imports from China but also the basic ingredients from there,” said Destiawan in a virtual public expose, Friday (8/10). /2021).
He hopes that this problem will be resolved soon so that the domestic construction business in particular will improve again.
However, he assessed that the impact was not entirely negative, the Evergrande effect was actually considered positive for the domestic financial market, especially the stock market.
Waskita Karya’s Director of Finance and Risk Management Taufik Hendra Kusuma assessed that the negative effect of Evergrande would bring investment funds into the country.
This is considered positive because it coincides with the company’s plan to increase capital with pre-emptive rights (HMETD/rights issue).
“For the rights issue and corporate agenda, the securities will be positive from investors because billions of funds will be pulled out of there, so the funds coming out of there will be a source of funds for our rights issue this year,” he explained on the same occasion.
To note, the company will carry out this corporate action by issuing 24.56 billion Series B shares with a nominal value of Rp 100 per share through a limited public offering mechanism.
The government will absorb this rights issue with the allocation of State Capital Participation (PMN) worth Rp 7.9 trillion this year. Meanwhile, the public is expected to obtain funds worth Rp 4 trillion.
Thus, this corporate action will be carried out at the latest by the end of this year with a target fund of almost Rp 12 trillion.
The funds from this additional capital will be used to complete the seven toll roads invested by the company.
The toll roads in question include the Becakayu, Cimanggis-Cibitung, Pejagan Pemalang, and Kayu Agung-Palembang-Betung toll roads. Then the Ciawi-Sukabumi, Pasuruan-Probolinggo and Krian-Legundi-Bunder-Manyar toll roads.
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