1 ABRIDGED PROSPECTUS THE FINANCIAL SERVICES AUTHORITY OR OTORITAS JASA KEUANGAN (“OJK”) NEITHER GIVES ITS APPROVAL OR DISAPPROVAL ON THE SECURITIES, NOR DOES THE OJK CONFIRM THE ACCURACY OR COMPLETENESS OF THE CONTENT OF THIS ABRIDGED PROSPECTUS. ANY STATEMENT CONTRARY TO BE THE ABOVE SHALL BE AGAINST THE LAW. - PERUSAHAAN PERSEROAN (PERSERO) PT WIJAYA KARYA TBK Main Business Activities: Engaged in the construction industry, fabrication industry, leasing services, agency services, investment, agri-industry, energy, renewable energy and energy conversion industry, railway operation, port operation, airport operation,logistic, trade, engineering procurement construction, estate development and management, capacity building in construction, information technology, engineering and planning services. Domiciled in Jakarta, Indonesia HEAD OFFICE Jl. D.I. Panjaitan Kav. 9 Jakarta, 13340, Indonesia Phone: (021) 819-2808 Fax:(021) 819-1235 www.wika.co.id [email protected] PUBLIC OFFERING FOR CAPITAL INCREASE WITH PREEMPTIVE RIGHTS I (“RIGHTS ISSUE I”) The Company has obtained the approval from the EGMS to issue a maximum of Rp4,037,164,144 (four billion thirty seven million one hundred sixty four thousand one hundred forty four) new shares with a nominal value of Rp100.- (one hundred Rupiah) per share (“Preemptive Rights Shares”). The estimated amount of proceeds to be received by the Company in this Rights Issue I is approximately Rp6,149,225,000,000 (six trillion one hundred forty nine billion two hundred twenty five million Rupiah). The Preemptive Rights Exercise Price (“Exercise Price”) and the Preemptive Rights ratio shall be determined by the Company's Board of Directors, with the approval of the Board of Commissioners. The Company shall have the rights to change the provisions of the Preemptive Rights with due considerations to other circumstances and factors as deemed appropriate. The provisions concerning the issuance of Preemptive Rights in Rights Issue I, including the Exercise Price and final amount of shares to be offered shall be announced in time. All of the Preemptive Rights shares shall be issued from portfolio and shall be listed on the IDX with due considerations to the prevailing laws and regulations. The Preemptive Rights Shares shall have identical rights in all respect (including the right to receive dividends) and rank equally with the Company’s existing paid-up shares. Each fraction of Preemptive Right shall be rounded down. The Company’s Shareholder, namely the Republic of Indonesia shall exercise its rights in this Rights Issue I in accordance with its portion of ownership as stipulated in Law No. 14 of 2015 concerning the State Budget of 2016 Budget Year juncto Law no. 12 of 2016 concerning the Amendment of Law No. 14 of 2015 concerning the State Budget of 2016 Budget Year. In the event that the Preemptive Rights Shares offered in this Rights Issue I are not entirely subscribed by the public holders of Preemptive Rights, the remaining shall be allocated to other Preemptive Right Holders subscribing more than their rights as stated in the Preemptive Rights Certificate or the Additional Shares Subscription Form proportionally based on the exercised rights. In the event that there are remaining Preemptive Rights Shares available subsequent to the said allocation of additional share subscriptions, then, pursuant to the Remaining Shares Subscription Agreement and its amendments thereof, all of the remaining Preemptive Rights Shares must be subscribed by the Stand-by Buyer. The remaining Preemptive Rights Shares that must be subscribed by the said Stand-by Buyer shall not include the shares issued from the exercise of Preemptive Rights of the Controlling Shareholders in this Preemptive Rights I. THIS PREEMPTIVE RIGHTS I SHALL BE EFFECTIVE UPON APPROVAL OF THE COMPANY'S EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS (“EGMS”), WHICH HAS CONVENED ON AUGUST 22, 2016, AND UPON EFFECTIVE STATEMENT FROM THE OJK ISSUED ON SEPTEMBER 28, 2016. THE PREEMPTIVE RIGHTS SHALL BE LISTED ON THE INDONESIA STOCK EXCHANGE (“IDX”). THE PREEMPTIVE RIGHTS SHALL BE TRADABLE EITHER ON OR OUTSIDE OF THE IDX FOR A PERIOD THAT SHALL BE NO LESS THAN 5 (FIVE) BUSINESS DAYS COMMENCING ON OCTOBER 12 -18, 2016. NEW SHARES FROM THE EXERCISE OF PREEMPTIVE RIGHTS SHALL BE LISTED ON THE INDONESIA STOCK EXCHANGE ON OCTOBER 12, 2016. THE LAST DATE TO EXERCISE THE PREEMPTIVE RIGHTS SHALL BE OCTOBER 18, 2016, PROVIDED THAT THE RIGHTS THAT ARE NOT EXERCISED UP TO SUCH DATE SHALL BE NO LONGER VALID. IMPORTANT NOTICE TO SHAREHOLDERS IN THE EVENT THAT THE MINORITY SHAREHOLDERS DO NOT EXERCISE THEIR RIGHTS TO SUBSCRIBE TO THE PREEMPTIVE RIGHTS SHARES OFFERED IN THIS RIGHTS ISSUE I IN ACCORDANCE WITH THEIR RESPECTIVE PREEMPTIVE RIGHTS, THE PERCENTAGE OF OWNERSHIP OF SUCH MINORITY SHAREHOLDERS SHALL BE DILUTED BY A MAXIMUM OF 39.63%. THE COMPANY'S MAIN RISK EXPOSURE IS THE BUSINESS DEVELOPMENT RISK. THE COMPANY SHALL NOT ISSUE ANY COLLECTIVE SHARE CERTIFICATE IN THIS RIGHTS ISSUE I, HOWEVER, THE NEW SHARES FROM THE EXERCISE OF PREEMPTIVE RIGHTS SHALL BE ELECTRONICALLY DISTRIBUTED AND ADMINISTERED IN THE COLLECTIVE DEPOSITORY OF PT KUSTODIAN SENTRAL EFEK INDONESIA. STAND-BY BUYERS To be determined THE INVESTORS’ MAIN RISK EXPOSURE IS THE RISK OF PRICE AND LIQUIDITY OF THE COMPANY’S SHARES, WHICH SHALL BE AFFECTED BY THE CONDITION OF THE INDONESIAN CAPITAL MARKET. This Abridged Prospectus is issued in Jakarta on October 11, 2016 THIS ABRIDGED PROSPECTUS IS IMPORTANT AND REQUIRES IMMEDIATE ATTENTION. SHOULD THERE BE ANY DOUBT CONCERNING THE PROPER ACTIONS TO BE TAKEN, IT IS ADVISED TO CONSULT WITH THE COMPETENT PARTIES. PERUSAHAAN PERSEROAN (PERSERO) PT WIJAYA KARYA TBK (THE “COMPANY”) IS FULLY RESPONSIBLE FOR THE ACCURACY OF ALL MATERIAL INFORMATION, FACTS, DATA, OR REPORTS AND THE TRUTHFULLNES OF OPINIONS PRESENTED IN THIS PROSPECTUS.
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1
ABRIDGED PROSPECTUS
THEFINANCIALSERVICESAUTHORITYOROTORITASJASAKEUANGAN(“OJK”)NEITHERGIVESITSAPPROVALORDISAPPROVALONTHESECURITIES,NORDOESTHEOJKCONFIRMTHEACCURACYORCOMPLETENESSOFTHECONTENTOFTHISABRIDGEDPROSPECTUS.ANYSTATEMENTCONTRARYTOBETHEABOVESHALLBEAGAINSTTHELAW.
-
PERUSAHAANPERSEROAN(PERSERO)PTWIJAYAKARYATBK
MainBusinessActivities:Engagedintheconstructionindustry,fabricationindustry,leasingservices,agencyservices,investment,agri-industry,energy,renewableenergyandenergyconversionindustry,railwayoperation,portoperation,airportoperation,logistic,trade,engineeringprocurementconstruction,estatedevelopmentand
management,capacitybuildinginconstruction,informationtechnology,engineeringandplanningservices.
DomiciledinJakarta,Indonesia
HEADOFFICEJl.D.I.PanjaitanKav.9
Jakarta,13340,IndonesiaPhone:(021)819-2808Fax:(021)819-1235
PUBLICOFFERINGFORCAPITALINCREASEWITHPREEMPTIVERIGHTSI(“RIGHTSISSUEI”)
TheCompanyhasobtainedtheapprovalfromtheEGMStoissueamaximumofRp4,037,164,144(fourbillionthirtysevenmilliononehundredsixtyfourthousandonehundredfortyfour)newshareswithanominalvalueofRp100.-(onehundredRupiah)pershare(“PreemptiveRightsShares”).TheestimatedamountofproceedstobereceivedbytheCompanyinthisRightsIssueIisapproximatelyRp6,149,225,000,000(sixtrilliononehundredfortyninebilliontwohundredtwentyfivemillionRupiah).ThePreemptiveRightsExercisePrice(“ExercisePrice”)andthePreemptiveRightsratioshallbedeterminedbytheCompany'sBoardofDirectors,withtheapprovaloftheBoardofCommissioners.TheCompanyshallhavetherightstochangetheprovisionsofthePreemptiveRightswithdueconsiderationstoothercircumstancesandfactorsasdeemedappropriate.TheprovisionsconcerningtheissuanceofPreemptiveRightsinRightsIssueI,includingtheExercisePriceandfinalamountofsharestobeofferedshallbeannouncedintime.AllofthePreemptiveRightssharesshallbeissuedfromportfolioandshallbelistedontheIDXwithdueconsiderationstotheprevailinglawsandregulations.ThePreemptiveRightsSharesshallhave identicalrights inall respect (includingtherighttoreceivedividends)andrankequallywiththeCompany’sexistingpaid-upshares.EachfractionofPreemptiveRightshallberoundeddown.TheCompany’sShareholder,namelytheRepublicofIndonesiashallexerciseitsrightsinthisRightsIssueIinaccordancewithitsportionofownershipasstipulatedinLawNo.14of2015concerningtheStateBudgetof2016BudgetYearjunctoLawno.12of2016concerningtheAmendmentofLawNo.14of2015concerningtheStateBudgetof2016BudgetYear.IntheeventthatthePreemptiveRightsSharesofferedinthisRightsIssueIarenotentirelysubscribedbythepublicholdersofPreemptiveRights,theremainingshallbeallocatedtootherPreemptiveRightHolderssubscribingmorethantheirrightsasstatedinthePreemptiveRightsCertificateortheAdditionalSharesSubscriptionFormproportionallybasedontheexercisedrights.IntheeventthatthereareremainingPreemptiveRightsSharesavailablesubsequenttothesaidallocationofadditionalsharesubscriptions,then,pursuanttotheRemainingSharesSubscriptionAgreementanditsamendmentsthereof,alloftheremainingPreemptiveRightsSharesmustbesubscribedbytheStand-byBuyer.TheremainingPreemptiveRightsSharesthatmustbesubscribedbythesaidStand-byBuyershallnotincludethesharesissuedfromtheexerciseofPreemptiveRightsoftheControllingShareholdersinthisPreemptiveRightsI.THISPREEMPTIVERIGHTSISHALLBEEFFECTIVEUPONAPPROVALOFTHECOMPANY'SEXTRAORDINARYGENERALMEETINGOFSHAREHOLDERS(“EGMS”),WHICHHASCONVENEDONAUGUST22,2016,ANDUPONEFFECTIVESTATEMENTFROMTHEOJKISSUEDONSEPTEMBER28,2016.
THEPREEMPTIVERIGHTSSHALLBELISTEDONTHEINDONESIASTOCKEXCHANGE(“IDX”).THEPREEMPTIVERIGHTSSHALLBETRADABLEEITHERONOROUTSIDEOFTHEIDXFORAPERIODTHATSHALLBENOLESSTHAN5(FIVE)BUSINESSDAYSCOMMENCINGONOCTOBER12-18,2016.NEWSHARESFROMTHEEXERCISEOFPREEMPTIVERIGHTSSHALLBELISTEDONTHEINDONESIASTOCKEXCHANGEONOCTOBER12,2016.THELASTDATETOEXERCISETHEPREEMPTIVERIGHTSSHALLBEOCTOBER18,2016,PROVIDEDTHATTHERIGHTSTHATARENOTEXERCISEDUPTOSUCHDATESHALLBENOLONGERVALID.
IMPORTANTNOTICETOSHAREHOLDERS
INTHEEVENTTHATTHEMINORITYSHAREHOLDERSDONOTEXERCISETHEIRRIGHTSTOSUBSCRIBETOTHEPREEMPTIVERIGHTSSHARESOFFEREDINTHISRIGHTSISSUEIINACCORDANCEWITHTHEIRRESPECTIVEPREEMPTIVERIGHTS,THEPERCENTAGEOFOWNERSHIPOFSUCHMINORITYSHAREHOLDERSSHALLBEDILUTEDBYAMAXIMUMOF39.63%.
THECOMPANY'SMAINRISKEXPOSUREISTHEBUSINESSDEVELOPMENTRISK.
THECOMPANYSHALLNOTISSUEANYCOLLECTIVESHARECERTIFICATEINTHISRIGHTSISSUEI,HOWEVER,THENEWSHARESFROMTHEEXERCISEOFPREEMPTIVERIGHTSSHALLBEELECTRONICALLYDISTRIBUTEDANDADMINISTEREDINTHECOLLECTIVEDEPOSITORYOFPTKUSTODIANSENTRALEFEKINDONESIA.
STAND-BYBUYERS
Tobedetermined
THEINVESTORS’MAINRISKEXPOSUREISTHERISKOFPRICEANDLIQUIDITYOFTHECOMPANY’SSHARES,WHICHSHALLBEAFFECTEDBYTHECONDITIONOFTHEINDONESIANCAPITALMARKET.
ThisAbridgedProspectusisissuedinJakartaonOctober11,2016
THISABRIDGEDPROSPECTUSISIMPORTANTANDREQUIRESIMMEDIATEATTENTION.SHOULDTHEREBEANYDOUBTCONCERNINGTHEPROPERACTIONSTOBETAKEN,ITISADVISEDTOCONSULTWITHTHECOMPETENTPARTIES.
PERUSAHAANPERSEROAN(PERSERO)PTWIJAYAKARYATBK(THE“COMPANY”)ISFULLYRESPONSIBLEFORTHEACCURACYOFALLMATERIALINFORMATION,FACTS,DATA,ORREPORTSANDTHETRUTHFULLNESOFOPINIONSPRESENTEDINTHISPROSPECTUS.
TEMPORARY SCHEDULE DateofExtraordinaryGeneralMeetingofShareholders(EGMS)
: August22,2016
DistributionofPreemptiveRightsCertificate : October11,2016
EffectiveDateofthePreemptiveRightsStatementofRegistration
: September28,2016 ShareListingDateontheIndonesiaStockExchange
: October12,2016
LastRecordingDatetoacquirePreemptiveRights
: October10,2016 PreemptiveRightsTradingPeriod : October12-18,2016
TheLastTradingDateofShareswithPreemptiveRights(Cum-Right)
PreemptiveRightsRegistration,PaymentandExercisePeriod
: October12-18,2016
RegularMarketandNegotiatedMarket : October5,2016 PreemptiveRightsSharesDistributionPeriod : October14-20,2016CashMarket : October10,2016 LastPaymentDateofAdditionalShares
Subscription: October20,2016
TheFirstTradingDateofShareswithoutPreemptiveRights(Ex-Right)
: AllotmentDate : October21,2016
RegularMarketandNegotiatedMarket October6,2016 DateonwhichtheStand-byBuyersPerformTheirObligations
: October24,2016
CashMarket : October11,2016 SubscriptionFundRefundDate : October25,2016
PerusahaanPerseroan(Persero)PTWijayaKaryaTbk(Hereinafterreferredtoasthe“Company”inthisProspectus)hassubmittedtheStatementofRegistrationwith respect to theRights Issue I in connectionwith the issuanceofPreemptiveRights totheFinancialServicesAuthorityorOtoritasJasaKeuangan(“OJK”)inJakartabyletterNo.SE.01.01/A.DIR.9218/2016onAugust23,2016, inaccordancewith the requirements set forth in theOJKRegulationNo.32/POJK.04/2015datedDecember22,2015,concerningtheAdditionalCapitalofPublicCompanieswithPreemptiveRights(“POJKNo.32/2015”),andOJKRegulationNo.33/POJK.04/2015datedDecember16,2015,concerning theFormandContentofProspectus forAdditionalCapitalofPublicCompanieswithPreemptiveRights(“POJKNo.33/2015”),whicharetheimplementationofLawoftheRepublicofIndonesiaNo.8of1995concerningtheCapitalMarkets,StateGazetteof theRepublicof IndonesiaNo.64of1995 ,SupplementNo.3608(“CapitalMarketLaw”)anditsimplementingregulations.AlltheCapitalMarketSupportingInstitutionsandProfessionalsreferredtoinconnectionwiththisRightsIssueIshallbefullyresponsibleforthedatapresentedinaccordancewiththeirfunctionsandpositions,inaccordancewiththeprovisionsofthelawsandregulationsintheCapitalMarketaswellastheirrespectivecodeofethics,normsandprofessionalstandards.
WithrespecttothisRightsIssueI,allparties,includingaffiliatedparties,areprohibitedfromprovidinganyinformationorissuinganystatementswhatsoeverconcerningdataormattersthatarenotdisclosedinthisProspectuswithouttheCompany'spriorwrittenapproval.
TheCapitalMarketSupporting InstitutionsandProfessionals inthisRights Issue IarenotaffiliatedtotheCompany,whetherdirectlyorindirectly,withinthemeaningdefinedintheCapitalMarketLaw.
IntheeventthatthePreemptiveRightsSharesofferedinthisRightsIssueIarenotentirelysubscribedbythepublicholdersofPreemptiveRights,theremainingshallbeallocatedtootherPreemptiveRightHolderssubscribingmorethantheirrightsasstatedinthePreemptiveRightsCertificateortheAdditionalSharesSubscriptionFormproportionallybasedontheexercisedrights.Intheevent that thereare remainingPreemptiveRights Sharesavailable subsequent to the saidallocationof additional sharesubscriptions,then,pursuanttotheRemainingSharesSubscriptionAgreementanditsamendmentsthereof,alloftheremainingPreemptiveRights Sharesmustbe subscribedby theStand-byBuyer. The remainingPreemptiveRights Shares thatmustbesubscribedbythesaidStand-byBuyershallnotincludethesharesissuedfromtheexerciseofPreemptiveRightsoftheControllingShareholdersinthisPreemptiveRightsI.ThePreemptiveRightsSharesshallhaveidenticalrightsinallrespect(includingtherighttoreceivedividends)andrankequallywiththeCompany’sexistingpaid-upshares.
PursuanttothePOJKNo.32/2015,intheeventthattheshareholdersownthePreemptiveRightsCertificate(“PRC”)inafractionform,theCompanyshallownandsellsuchfractionofsharesandtheproceedsofwhichshallbedepositedintheCompany'saccount.
THISRIGHTS ISSUE I ISNOTREGISTEREDPURSUANTTO LAWSANDREGULATIONSOTHERTHANTHOSEPREVAILING ININDONESIA.SHOULDANYPARTYOUTSIDETHEJURISDICTIONOFINDONESIAOBTAINTHISPROSPECTUSORPRC,OROTHERDOCUMENTSRELATEDTOTHISRIGHTS ISSUE I, SUCHDOCUMENTSARENOT INTENDEDASOFFERINGDOCUMENTSTOPURCHASE ORDINARY REGISTERED SHARES RESULTING FROM THE EXERCISE OF PREEMPTIVE RIGHTS, UNLESS SUCHPURCHASEOREXERCISEOFPREEMPTIVERIGHTSARENOTINCONTRATRYTOORDONOTCONSTITUTEAVIOLATIONTOTHEPREVAILINGLAWSINSUCHJURISDICTIONS.
THEPROSPECTUSISISSUEDINACCORDANCEWITHTHEPREVAILINGLASWAND/ORREGULATIONSININDONESIA.NOPARTOFTHISDOCUMENTSHALLBECONDSIDEREDASANOFFERINGTOSELLSECURITIESINTHEJURISDICTIONSPROHIBITINGSUCH OFFERINGS. EVERY PARTY OUTSIDE THE JURISDICTION OF INDONESIA SHALL BE FULLY REPONSIBLE FOR THECOMPLIANCEWITHTHEPREVAILINGREGULATIONSINSUCHJUSRISDICTION.
THECOMPANYHASDISCLOSEDALLINFORMATIONTHATISREQUIREDTOBEKNOWNTOPUBLICANDTHEREISNOOTHERINFORMATIONTHATHAVENOTBEENDISCLOSEDWHICHMAYOTHERWISEMISLEADTHEPUBLIC.
ADDITIONAL CAPITAL WITH PREEMPTIVE RIGHTS
TheCompanyhasobtainedtheapprovalfromtheEGMStoissueamaximumofRp4,037,164,144(fourbillionthirtysevenmilliononehundredsixtyfourthousandonehundredfortyfour)newshareswithanominalvalueofRp100.-(onehundredRupiah)pershare. The estimated amount of proceeds to be received by the Company in this Rights Issue I is approximatelyRp6,149,225,000,000(sixtrilliononehundredfortyninebilliontwohundredtwentyfivemillionRupiah).ThePreemptiveRightsExercise Price and ratio shall be determined by the Company's Board of Directors, with the approval of the Board ofCommissioners.The Company shall have the rights to change the provisions of the Preemptive Rights with due considerations to othercircumstancesandfactorsasdeemedappropriate.TheprovisionsconcerningtheissuanceofPreemptiveRightsinRightsIssueI,includingtheExercisePriceandfinalamountofsharestobeofferedshallbeannouncedintime.ThePreemptiveRights are tradableonor outside the IDX in accordancewithPOJKNo. 32/2015 for 5 (five) ExchangeDays,commencingonOctober12,2016uptoOctober18,2016.ThePreemptiveRightsSharesshallbeissuedfromportfolioandtheSharesissuedfromtheexerciseofPreemptiveRightsshallbelistedontheIDXonOctober12,2016.ThelastPreemptiveRightsexercisedateshallbeOctober18,2016,thereforePreemptiveRightsthatarenotexerciseduptosuchdateshallbenolongervalid.ThePreemptiveRightsSharesshallhaveidenticalrightsinallrespect(includingtherighttoreceivedividends)andrankequallywiththeCompany’sexistingpaid-upshares.EachfractionofPreemptiveRightshallberoundeddown.IntheeventthatthePreemptiveRightsSharesofferedinthisRightsIssueIarenotentirelysubscribedbythepublicholdersofPreemptiveRights,theremainingshallbeallocatedtootherPreemptiveRightHolderssubscribingmorethantheirrightsasstatedinthePreemptiveRightsCertificateortheAdditionalSharesSubscriptionFormproportionallybasedontheexercisedrights.Intheevent that thereare remainingPreemptiveRights Sharesavailable subsequent to the saidallocationof additional sharesubscriptions,then,pursuanttotheRemainingSharesSubscriptionAgreementanditsamendmentsthereof,alloftheremainingPreemptiveRights Sharesmustbe subscribedby theStand-byBuyer. The remainingPreemptiveRights Shares thatmustbesubscribedbythesaidStand-byBuyershallnotincludethesharesissuedfromtheexerciseofPreemptiveRightsoftheControllingShareholdersinthisPreemptiveRightsI. Basedon theReport from the Securities AdministrationBureau, PTDatindo Entrycom, the Company’s capital structure andshareholdercompositionswereasfollows:
ShareholdersNominalValueRp100.00pershare
Share Rupiah %AuthorizedCapital
ASeriesDwiwarnaShares 1 100 -BSeriesShares 15,999,999,999 1,599,999,999,900 IssuedandFullyPaid-upCapital ASeriesDwiwarnaShares TheStatetheRepublicofIndonesia 1 100 -BSeriesShares TheStatetheRepublicofIndonesiaBintangPerbowo
3,999,999,9991,507,700
399,999,999,900150,770,000
65.050.02
Public 2,147,717,300 214,771,730,000 34.93TotalIssuedandFullyPaid-upCapital 6,149,225,000 614,922,500,000 100.00TotalSharesinPortfolio
-
ASeriesDwiwarnaShares - -BSeriesShares 9,850,775,000 985,077,500,000
WITHINAPERIODOF12(TWELVE)MONTHSFOLLOWINGTHEEFFECTIVENESOFTHEREGISTRATIONSTATEMENTWITHRESPECTTOTHISRIGHTSISSUEI,THECOMPANYSHALLNOTISSUEORREGISTERANYNEWSHARESOROTHERSECURITIESCONVERTIBLETOSHARESOTHERTHANTHOSEOFFEREDINRIGHTSISSUEI.
RightsIssueI
TypeofOffering : PreemptiveRightsNominalValue : Rp100(onehundredRupiah)ExercisePrice : Rp[●]([●]Rupiah)ConversionRatio : [●](●)existingsharesshallbeentitledto[●](●)PreemptiveRights.DilutionofOwnership : 39.63%(thirtyninepointsixthreepercent)PreemptiveRightsTradingPeriod : October12-18,2016PreemptiveRightsTradingPeriod : October12-18,2016SecuritiesListingDateontheStockExchange
: October12,2016
Listing : IndonesiaStockExchange
AssumingalloftheCompany'sshareholdersexercisetheirPreemptiveRightswhichtheyareentitledtointhisRightsIssueI,theCompany’scapitalstructuresubsequenttotheRightsIssueIonaproformabasisshallbeasfollows:
NameofShareholder
PriortoRightsIssueI SubsequenttoRightsIssueI
NominalValueRp.100.-pershare NominalValueRp.100.-pershare
Numberof
Shares
TotalNominal
Value(Rp)% Numberof
SharesTotalNominalValue(Rp) %
AuthorizedCapital
ASeriesDwiwarna
Shares 1 100
1 100
BSeries 15,999,999,999 1,599,999,999,900
15,999,999,999 1,599,999,999,900
TotalAuthorized
Capital 16,000,000,000 1,600,000,000,000
16,000,000,000 1,600,000,000,000
IssuedandPaid-up
Capital
ASeriesDwiwarna
Shares
- TheStatethe
Republicof
IndonesiaA
Series 1 100 - 1 100 -
BSeriesShares
- TheStatethe
Republicof
IndonesiaB
Series 3,999,999,999 399,999,999,900 65.05 6,626,128,753 662,612,875,300 65.05
- Bintang
Perbowo 1,507,700 150,770,000 0.02 1,507,700 150,770,000 0.02
- Public 2,147,717,300 214,771,730,000 34.93 3,558,752,691 355,875,269,100 34.93
TotalIssuedandPaid-
upCapital 6,149,225,000 614,922,500,000 100.00 10,186,389,144 1,018,638,914,400 100.00
SharesinPortfolio
ASeriesDwiwarna
Shares - - -
BSeries 9,850,775,000 985,077,500,000
5,813,610,856 581,361,085,600
TotalSharesin
Portfolio 9,850,775,000 985,077,500,000
5,813,610,856 581,361,085,600
TheCompany’sMajorityShareholder,namelytheRepublicofIndonesiashallexerciseitsrightsinthisRightsIssueIinaccordancewithitsportionofownershipasstipulatedinLawNo.14of2015concerningtheStateBudgetof2016BudgetYearjunctoLawno.12of2016concerning theAmendmentof LawNo.14of2015concerning theStateBudgetof2016BudgetYear,whichimplementationshallbestipulatedbyaGovernmentRegulation,whichshallbeissuedpriortotheEffectiveStatementfromtheOJK.
IntheeventthattheminorityshareholdersdonotexercisetheirrightstosubscribetothePreemptiveRightsSharesofferedinthis Rights Issue I in accordance with their respective Preemptive Rights, the percentage of ownership of such minorityshareholdersshallbedilutedfrom34.95%to21.10%.HoldersofthePreemptiveRightswhodonotexercisetheirrightstopurchaseshareswithrespecttothisRightsIssueImayselltheirrightstootherpartiesfromOctober12,2016,uptoOctober18,2016,whetherontheStockExchangeoroutsideoftheStockExchangeinaccordancewithPOJKNo.32/2015.PursuanttotheResolutionsoftheEGMSdatedAugust22,2016,whichapprovedtheRightsIssueIplantobeconductedbytheCompanyinthesumofapproximatelyRp6,149,225,000,000(sixtrilliononehundredfortyninebilliontwohundredtwentyfivemillionRupiah)oramaximumof4,037,164,144(fourbillionthirtysevenmilliononehundredsixtyfourthousandonehundredfortyfour)PreemptiveRightsShares.Pursuant to the POJK No. 32/2015, this Rights Issue I shall be effective upon approval of the Company's EGMS,which hasconvenedonaugust22,2016,anduponeffectivestatementfromtheOJKissuedonSeptember28,2016.FurtherinformationconsideringtheRightsIssueIisavailableinChapterIofthisProspectus.WITHINAPERIODOF12(TWELVE)MONTHSFOLLOWINGTHEEFFECTIVENESOFTHEREGISTRATIONSTATEMENTWITHRESPECTTOTHISRIGHTSISSUEI,THECOMPANYSHALLNOTISSUEORREGISTERANYNEWSHARESOROTHERSECURITIESCONVERTIBLETOSHARESOTHERTHANTHOSEOFFEREDINRIGHTSISSUEI.
USE OF PROCEEDS TheproceedsreceivedbytheCompanyfromthisRightsIssueI(netofcommission,cost,feesandotherissuancecosts)shallbeusedasdetailedbelow:• CapitalexpenditurerequirementtosupporttheGovernment'spriorityinfrastructureprojects,amongothers,tofinancethe
investmentfortheconstructionoftollroad,powerplants,watertreatmentplants,andindustrialestates-approximately71%;and
• Workingcapitalrequirements-approximately29%
INDEBTEDNESS BasedontheCompany'sconsolidatedfinancialstatementsforthe6(six)-monthperiodendedJune30,2016,presentedinthisProspectus,whichwereauditedbythePublicAccountantFirm(“PAF”)Soejatna,Mulyana&Partners,an independentpublicaccountant,whichexpresseditsunqualifiedopinion,theCompany'stotalliabilitiesasofJune30,2016,wasRp14,961,784,194thousands,whichconsistedof: (InthousandsofRupiah) AsofJune30,2016.CurrentLiabilities ShortTermLoans 3,016,535,980TradePayables ThirdParties 4,344,252,195RelatedParties 46,959,240
OtherPayables 75,672,886Taxespayable 276,774,618AdvancefromCustomers 388,113,916AccruedExpenses 2,469,350,957UnearnedRevenue 173,596,658CurrentPortionofLongTermLoan MediumTermLoan 250,000,000LongTermLoan 259,416,393LeasePayables 18,772,830
TotalCurrentLiabilities 11,319,445,673 Non-CurrentLiabilities EmployeeBenefitsLiabilities 254,910,402DeferredTaxLiabilities 16,412,605AdvanceforLongTermProjects 1,779,644,740CurrentPortionofLongTermLoanafternetofCurrentPortionofShortTerm MediumTermLoan 975,000,000
LongTermLoan 578,645,240LeasePayables 37,725,534
TotalNon-CurrentLiabilities 3,642,338,521TotalLiabilities 14,961,784,194
KEY FINANCIAL HIGHLIGHTS The key financial highlights must be read in conjunction with and with reference to the Company's consolidated financialstatements(i)asofJune30,3016,andforthesix-monthperiodendedonJune30,2016,and2015,and(ii)asofDecember31,2015,and2014,andfortheyearsthenended,andthenotestotheconsolidatedfinancialstatementspresentedelsewhereinthisProspectus.The Company's key financial highlights presented below are derived from the Company's audited consolidated financialstatements(i)asofJune30,3016,andforthesix-monthperiodendedonJune30,2016,and2015,and(ii)asofDecember31,2015, and2014, and for the years thenended,whichhavebeenpreparedandpresented in accordancewithe theFinancialAccountingStandardsinIndonesiaandarepresentedelsewhereinthisProspectus.TheauditedconsolidatedfinancialstatementsasofandfortheyearsthenendedhavebeenauditedbasedonthestandardsofauditingestablishedbytheIndonesianInstituteofCertifiedPublicAccountants (InstitutAkuntanPublik Indonesia,“IAPI”bythePublicAccountantFirmSoejatna,Mulyana&Partners(amemberfirmofTPL&AssociateMalaysia),anindependentpublicaccountant,whichauditreportwassignedbythepublicaccountantDrs.SafaatWidjajabrata,CA,CPAasofAugust15,2016,withunqualifiedopinion.
STATEMENTSOFPROFITANDLOSSANDOTHERCOMPREHENSIVEINCOME (InthousandsofRupiah)
DESCRIPTIONFortheyearendedDecember31, Forthesix-monthperiodended
June30,
2014 2015 20152016
NETSALES 12,463,216,288 13,620,101,419 4,778,471,826 6,033,745,869COSTOFSALES (11,038,646,789) (11,965,441,022) (4,282,197,456) (5,303,404,800)
GROSSPROFIT 1,424,569,499 1,654,660,397 496,274,370 730,341,069PROFITLOSSFROMJOINTVENTURE 369,757,130 288,402,591 101,954,552 113,285,771GROSSPROFITAFTERJOINTVENTURES 1,794,326,629 1,943,062,988 598,228,922 843,626,840 OPERATINGEXPENSES SalesExpenses (6,838,756) (7,695,193) (3,527,522) (3,689,858)GeneralandAdministrativeExpenses (386,009,513) (421,462,453) (180,856,933) (223,768,350)TotalOperatingExpenses (392,848,269) (429,157,646) (184,384,455) (227,458,208)OPERATINGINCOME 1,401,478,360 1,513,905,342 413,844,467 616,168,632 OTHERINCOME(EXPENSE) InterestIncome 73,500,762 59,686,089 40,366,199 23,521,636Gain(Loss)inForeignExchange (2,039,829) 28,350,510 16,277,449 (8,689,569)FinalIncomeTaxExpenses (286,455,956) (346,788,000) (112,442,578) (128,639,358)FundingExpense(Interest) (197,704,174) (431,409,359) (103,578,198) (171,521,105)AllowanceforImpairment (46,244,153) (30,500,231) (7,339,700) (95,909)Gain(Loss)AssociatedEntity (7,123,198) (5,514,535) (4,081,454) (7,160,927)Others-Net (82,678,307) (36,436,057) (8,781,202) 19,876,182TotalOthersIncome(Expense) (548,744,855) (762,611,583) (179,579,484) (272,709,050)PROFITBEFOREINCOMETAX 852,733,505 751,293,759 234,264,983 343,459,582 IncomeTaxExpenses (108,964,403) (48,288,705) (14,384,356) (37,943,053)NETINCOME 743,769,102 703,005,054 219,880,627 305,516,529 OTHERCOMPREHENSIVEINCOMEAFTERTAX OtherComprehensiveIncomethatwillnotreclassifiedSubsequentlytoprofitorloss:
DifferenceofAssetValuation - - - -ActuarialGain(Loss)ofDefinedBenefitPlan (7,616,608) 6,306,290 (43,211,827) (26,471,374) COMPREHENSIVEINCOMEFORTHEYEAR 736,152,494 709,311,344 176,668,800 279,045,155IncomeAttributableTo: ParentEntityOwner 608,154,697 625,044,000 200,494,113 256,514,868Non-ControllingInterest 135,614,405 77,961,054 19,386,514 49,001,661Amount 743,769,102 703,005,054 219,880,627 305,516,529
CONSOLIDATEDSTATEMENTOFFINANCIALPOSITION
(InthousandsofRupiah)
DESCRIPTIONAsofDecember31 AsofJune30
2014 2015 2016ASSETS CURRENTASSETS CashandCashEquivalent 2,300,892,182 2,560,120,483 1,262,685,575TradeReceivablesNetofaccumulatedallowanceforimpairmentofRp167,180,436,Rp170,242,281andRp168,866,816asofJune30,2016,December31,2015and2014) ThirdParties 1,271,025,540 1,910,721,466 1,542,320,003RelatedParties 691,807,092 871,258,690 832,670,384
(InthousandsofRupiah)
DESCRIPTIONAsofDecember31 AsofJune30
2014 2015 2016RetentionReceivables(NetofaccumulatedallowanceforimpairmentofRp2,620,593,Rp2,620,593andRp2,025,563asofJune30,2016,December31,2015and2014) 567,875,358 662,948,555 736,280,666DuefromCustomer 2,369,859,861 3,244,397,788 4,210,195,337AccruedIncome 82,846,239 251,510,864 251,690,615Otherreceivables:NetofaccumulatedallowanceforimpairmentofRp167,180,436,Rp15.449.931andRp32.409.759asofJune30,2016,December31,2015and2014) 108,655,649 391,270,718 370,079,174Inventories 817,307,342 1,031,277,931 1,125,501,670Advance 384,431,063 439,641,163 573,844,669PrepaidTax 425,794,117 529,036,987 733,910,977PrepaidExpense 241,370,431 465,274,857 794,862,770BusinessGuarantee 18,760,917 22,643,681 34,136,092RealEstateAssets 90,434,701 70,033,233 122,450,155CurrentportionofLongTermLeaseReceivable 110,148,921 110,148,921 110,148,921TotalCurrentAssets 9,481,209,413 12,560,285,337 12,700,777,008 NON-CURRENTASSETS InvestmentinAssociates 227,137,428 300,607,375 394,869,948ReceivableswithMaturitiesGreaterThan1(one)Year: AccountReceivables 40,182,013 13,402,337 1,194,957RetentionReceivables 16,461,906 9,564,163 2,756,832
LongTermLeaseReceivables 389,074,416 278,925,495 223,868,627RealEstateAssets LandforDevelopment 142,006,418 255,036,889 192,440,671RealEstateInventories 745,845,647 870,590,596 1,393,862,072
InvestmentProperty 380,048,382 392,040,421 389,293,078FixedAssets(netofaccumulateddepreciationofRp1,065,790,006,Rp927,296,347andRp693,320,132asofJune30,2016,December31,2015and2014) 2,676,043,079 3,184,400,114 3,215,145,329InvestmentinJointVenture 1,669,608,387 1,597,379,391 1,896,849,621Goodwill 4,847,052 4,847,052 4,847,052OtherFinancialAssets 37,532,807 67,860,215 85,531,631OtherAssets 71,074,985 41,182,944 35,498,569DeferredTaxAssets 28,147,824 26,283,705 24,651,301TotalNon-CurrentAssets 6,428,010,344 7,042,120,697 7,860,809,687TotalAssets 15,909,219,757 19,602,406,034 20,561,586,695 LIABILITIESANDEQUITY CurrentLiabilities ShortTermLoans 928,515,444 1,221,822,355 3,016,535,980TradePayables ThirdParties 3,842,802,356 4,287,019,827 4,344,252,195RelatedParties 60,004,589 36,378,547 46,959,240
OtherPayables 71,112,786 96,482,975 75,672,886DuetoCustomer 9,641,161 13,224,506 -TaxPayables 168,940,523 177,085,029 276,774,618AdvancefromCustomers 316,364,321 477,381,896 388,113,916AccruedExpenses 2,120,553,384 3,285,172,048 2,469,350,957UnearnedRevenue 178,593,992 406,959,558 173,596,658CurrentPortionofLongTermLoan MediumTermLoan 541,000,000 249,000,000 250,000,000LongTermLoan 221,620,359 324,706,736 259,416,393LeasePayables 16,893,554 22,300,954 18,772,830
TotalCurrentLiabilities 8,476,042,469 10,597,534,431 11,319,445,673 Non-CurrentLiabilities EmployeeBenefitsLiabilities 181,284,262 200,490,168 254,910,402DeferredTaxLiabilities 2,162,275 11,170,726 16,801,794
(InthousandsofRupiah)
DESCRIPTIONAsofDecember31 AsofJune30
2014 2015 2016AdvanceforLongTermProjects 1,049,416,204 1,662,677,044 1,779,644,740CurrentPortionofLongTermLoanafternetofCurrentPortionofShortTerm MediumTermLoan 800,000,000 975,000,000 975,000,000LongTermLoan 475,104,845 671,067,024 578,645,240LeasePayables 48,454,961 46,365,276 37,725,534
TotalNon-CurrentLiabilities 2,556,422,547 3,566,770,238 3,642,338,521TotalLiabilities 11,032,465,016 14,164,304,669 14,961,784,194 EQUITY Equityattributabletoownersofparententity Sharecapital 614,922,500 614,922,500 614,922,500TreasuryStock (10,272,110) (10,272,110) (10,272,110)AdditionalPaid-inCapital 715,858,789 715,858,789 715,858,789ChangesinEquityofSubsidiaryCompany 1,127,249,357 1,127,249,357 1,127,249,357OtherComponentEquity DifferenceofAssetValuation 23,526,182 14,626,146 14,626,146RemeasurementEmployeeBenefit (106,750,583) (100,444,293) (126,915,667)
Retainedearnings 1,523,052,638 2,013,224,280 2,174,105,213SubTotal 3,887,586,773 4,375,164,669 4,509,574,228
Non-ControllingInterest 989,167,968 1,062,936,696 1,090,228,273TotalEquity 4,876,754,741 5,438,101,365 5,599,802,501TOTALLIABILITIESANDEQUITY 15,909,219,757 19,602,406,034 20,561,586,695
OTHERBUSINESSINFORMATIONRATIOS
DESCRIPTIONAsofandfortheyearended
December31,Forthesix-monthperiod
endedJune30,2014 2015 2015 2016
Operatingratio(%) Grossprofit/netsales 11.43 12.15 10.39 12.10
ProfitBeforeIncomeTax/netincome 9.14 8.06 7.26 7.82
Netincome/netsales 5.97 5.16 4.60 5.06
ProfitBeforeIncomeTax/totalequity 23.36 20.19 13.90 16.86
Netincome/totalequity 15.25 12.93 8.81 10.91
ProfitBeforeIncomeTax/totalassets 7.16 5.60 4.07 4.59
Netincome/totalassets 4.68 3.59 2.58 2.97
FinancialRatio(x)
Totalcurrentassets/totalcurrentliabilities 1.12 1.19 1.10 1.12
TotalLiabilities/TotalEquity(x) 2.26 2.60 2.42 2.67
TotalLiabilities/TotalAssets(x) 0.69 0.72 0.71 0.73
ThefollowingtablereconcilestheCompany’sprofitbeforeincometax(preparedbasedontheFinancialAccountingStandards)incalculatingEBITDA.
DESCRIPTION
FortheyearendedDecember31, Forthesix-monthperiodendedJune30,
2014 2015 20152016
Profitbeforeincometax 852,733,505 751,293,759 234,264,983 343,459,582Add: FinalIncomeTax 286,455,956 346,788,000 112,442,578 128,639,358FinancingCost 197,704,174 431,409,359 103,578,198 171,521,105Depreciation&amortization 190,825,052 272,017,950 137,741,859 212,047,656EBITDA 1,527,718,687 1,801,509,068 588,027,618 855,667,701
FINANCIALRATIOSREQUIREDBYLOANAGREEMENTSOROTHERLIABILITIES
FinancialRationintheLoanAgreementsorOtherLiabilitiesTheCompany'sFinancialRatios
asofJune30,2016.MinimumEbitda/InterestExpense 150% 498.87%MinimumCurrentRatio 100% 112.20%MaximumDER 400% 267.18%MinimumDSCR 100% 23.14%GearingRatio 250% 91.72%
MANAGEMENT'S DISCUSSION AND ANALYSIS
OperatingResults TheperiodfromDecember31,2015,uptoJune30,2016,comparedtothePeriodfromDecember31,2014,uptoJune30,2015NETSALESDuringthesix-monthperiodendedJune30,2016,theCompanyrecordedanetincomeofRp6,033,745,869thousand,anincreaseofRp1,255,274,043thousandor26.27%comparedtoRp4,778,471,826thousandduringthesix-monthperiodendedJune30,2015.TheincreasewasprimarilyduetotheincreaseinsalesfortheInfrastructureandBuildingsector,whichhasincreasedbyRp1,093,665,545thousandor52.27%comparedtosalesforInfrastructureandBuildingsectorasofJune30,2015.SuchincreasewasduetotheimprovementinbudgetabsorptionofRegionalGovernmentsandCentralGovernmentininfrastructureprojects.Theforegoinghasalsoaffectedtheindustrialsectors,mainlytheconcreteindustry.AsseenintheincreaseinsalesforindustrialsectorsbyRp455,322,411thousandorapproximately45.08%comparedtoJune30,2015.CostofSalesCosfofsaleshasincreasedbyRp1,021,207,344thousandor23.85%fromRp4,282,197,456thousandforthesix-monthperiodendedJune30,2015,toRp5,304,404,800thousandforthesix-monthperiodendedJune30,2016.Theincreasewasprimarilyduetotheincreaseinsalesfortheinfrastructureandbuildingsectorandindustrysector,whichalsoresultedintheincreaseofcostofsales.WhereasthecostofsalesfortheinfrastructureandbuildingsectorhasincreasedbyRp91,228,344thousandorapproximately47.05%comparedtothesix-monthperiodendedJune30,2015.WhereasthecostofsalesfortheindustrysectorhasincreasedbyRp363,297,215thousandorapproximately40.79%comparedtothesix-monthperiodendedJune30,2015.GrossprofitTheCompanyrecordedanincreaseingrossprofitbyRp234,066,669thousandor47.16%fromRp496,274,370thousandforthesix-monthperiodendedJune30,2015,toRp730,341,069thousandforthesix-monthperiodendedJune30,2016.TheincreaseintheCompany'sgrossprofitwasprimarilyduetotheefficiency inproductioncost inthe infrastructureandbuildingsector,whichresultedintheincreaseintheCompany'sgrossprofit.GrossProfitafterJointVenturesGrossprofitafterjointventureshasincreasedbyRp245,397,918thousandor41.02%fromRp598,228,922thousandforthesix-monthperiodendedJune30,2015,toRp843,626,840thousandforthesix-monthperiodendedJune30,2016.TheincreasewasprimarilyduetotheCompany'sdominationinKSOProjects,whichresultedintheincreaseinprofitfromjointventures.OperatingincomeOperatingincomehasincreasedbyRp202,324,153thousandor48.89%fromRp413,844,467thousandforthesix-monthperiodendedJune30,2015,toRp616,168,630thousandforthesix-monthperiodendedJune30,2016.Theincreasewasprimarilyduetotheincreaseingrossprofitandjointventuresandthecontrolofoperatingcost,whichresultedintheincreaseoftheCompany'soperatingincome.Otherincome(expenses)TheCompany'sotherincome(expenses)hasincreasedbyRp(93,129,566)thousandor51.86%fromRp(179,579,484)thousandforthesix-monthperiodendedJune30,2015,toRp(282,709,050)thousandforthesix-monthperiodendedJune30,2016.TheincreasewasprimarilyduetotheincreaseinfinancingcostresultingfromtheincreaseintheCompany'sliabilitiestofinancetheCompany'sworkingcapitalandcapitalexpenditurerequirements.
NetIncomeNetincomehasincreasedbyRp85,635,902thousandor38.95%fromRp219,880,627thousandforthesix-monthperiodendedJune30,2015,toRp305,516,529thousandforthesix-monthperiodendedJune30,2016.Theincreasewasprimarilyduetotheincreaseinnetsalesandtheincreaseinprofitfromjointventures.OtherComprehensiveIncomeforthePeriodOthercomprehensiveincomefortheperiodhasincreasedbyRp102,376,355thousandor57.95%fromRp176,668,800thousandforthesix-monthperiodendedJune30,2015,toRp279,045,153thousandforthesix-monthperiodendedJune30,2016.Theincreasewasprimarilyduetotherecalculationofthevalueofpost-employmentbenefitprogram.The2015FiscalYearcomparedtothe2014FiscalYearNETSALESDuringthefiscalyearendedDecember31,2015,theCompanyrecordedanetsalesofRp13,620,101,419thousand,anincreaseofRp156,885,131thousandor9.2%comparedtothenetsalesduringthefiscalyearsendedDecember31,2014.Theincreasewasmainlyduetotheincreaseinsalesfromtheinfrastructureandbuildingsegmentby26.49%,fromRp4,779,450,000thousandin2014toRp6,356,200,000thousandin2015.Theincreaseinsalesforsuchsegmentwasinlinewiththeincreaseinnumberofinfrastructureprojectsinordertorealizethedevelopmentaccelerationprogrampromotedbythegovernment.CostofSalesCostof saleshas increasedbyRp926,794,233 thousandor8.40% fromRp11,038,646,798 thousand for the fiscalyearendedDecember31,2014fromRp11,965,441,022thousandforthefiscalyearendedDecember31,2015.Theincreaseincostofsaleswasinlinewiththeincreaseinsales,althoughtheincreaseinCostofSaleswaslowerthantheincreaseinsales.GrossprofitTheCompanyrecordedanincreaseingrossprofitbyRp230,090,898thousandor16.15%fromRp1,424,569,499thousandforthefiscalyearendedDecember31,2014toRp1,654,660,397thousandforthefiscalyearendedDecember31,2015.Theincreaseingrossprofitwasduetotheincreaseinsalesandtheincreaseinprofitabilityofprojectsundertakenasaresultofefficiencyintheproductioncostwithoutsacrificingthequalityoftheproduct.In2015,theCompanyalsorecordedincomefromclaim,amongothersfromtheAmurangSteamPowerPlantProjecctinNorthSulawesi.GrossProfitafterJointVenturesGrossprofitafterjointventureshasincreasedbyRp148,736,359thousandor8.29%fromRp1,794,326,629thousandforthefiscalyearendedDecember31,2014,toRp1,934,062,988thousandforthefiscalyearendedDecember31,2015.Theincreasewasprimarilyduetotheincreaseinnumberofjointventureprojects,followedbytheincreaseinprofitabilityofjointventureprojects.OperatingincomeOperatingincomehasincreasedbyRp112,426,982thousandor8.02%fromRp1,401,478,360thousandforthefiscalyearendedDecember31,2014,toRp1,513,905,342thousandforthefiscalyearendedDecember31,2015,whichwasprimarilyduetotheincreaseingrossprofitandtheincreaseinoperatingexpensesthatwerehighercomparedtogrossprofit,thereforetheincreaseinoperatingincomewaslowercomparedtotheincreaseingrossprofit.Otherincome(expenses)TheCompany'sotherincome(expenses)hasincreasedbyRp213,866,728thousandor38.97%fromRp548,744,885thousandforthefiscalyearendedDecember31,2014,toRp762,611,583forthefiscalyearendedDecember31,2015,whichwasprimarilyduetotheincreaseinfinancingcostfromRp197,704,174thousandtoRp431,409,359thousandoranincreaseof18.21%.ProfitBeforeIncomeTaxInoverall,profitbeforeincometaxhasdecreasedbyRp101,439,746thousandor11.90%fromRp852,733,505thousandforthefiscalyearendedDecember31,2014,toRp751,293,759thousandforthefiscalyearendedDecember31,2015,whichwasmainlyduetotheincreaseinotherincome(expenses),whichwashigherthantheincreaseinoperatingprofit.IncomeTaxExpenses
IncometaxexpenseshasdecreasedbyRp60,675,698thousandor55.68%fromRp108,964,403thousandforthefiscalyearendedDecember31,2014toRp48,288,705thousandforthefiscalyearendedDecember31,2015.SuchdecreasewasinlinewiththepatternsoftransactionsundertakenbytheCompany.IncomeattributabletoparententityownerTotal Income Attributable to Parent Entity Owner for the Period has increased by Rp16,889,303 thousand or 2.78% fromRp608,154,697 thousand for the fiscalyearendedDecember31,2014, toRp625,044,000 thousand for the fiscalyearendedDecember31,2015,whichwasmainlyduetotheincreaseingrossprofit,followedbycontrolofoperatingexpenses.However,theCompanycouldnotavoidedtherelativelyhighincreaseoffinancecostasaresultofanincreaseinbankloansrequiredfortheCompany'sworkingcapitalandcapitalexpenditures.TheCompany'sFinancialPositionJune30,2016comparedtothe2015FiscalYearAssetsAsof June30, 2016, theCompany recordedaRp,959,180,661 thousandor4.89% increase in assets fromRp19,602,406,034thousandasofDecember31,2015, toRp20,561,586,695 thousandasof June30,2016.The increasewasmainlydue to theincreaseinDuefromCustomer,PrepaidExpense,RealEstateInventoriesandInvestmentinJointVenture.TheCompany’scurrentassetsasofJune30,2016,wasRp12,700,777,008thousand,anincreaseofRp140,491,671thousandor1.11%comparedtoRp12,560,285,337thousandasofDecember31,2015,whichwasmainlyduetotheincreaseinDuefromCustomerbyRp965,797,549thousandor29.76%comparedtothebalanceofDuefromCustomerasofDecember31,2015.TheincreaseinininventorybyRp94,233,739thousandor9.14%comparedtothebalanceofinventoryasofDecember31,2015.TheincreaseinprepaidtaxbyRp329,587,913thousandor70.84%comparedtothebalanceofprepaidtaxasofDecember31,2015.The increase in real estateassetsbyRp52,416,922 thousandor74.85%compared to thebalanceof real estateassets asofDecember31,2015.TheCompany'snon-currentassetsasofJune30,2016,wasRp7,860,809,687thousand,anincreaseofRp819,192,827thousandor11.63%comparedtoRp7,042,120,697thousandasofDecember31,2015,whichwasprimarilyduetotheweakeningofpublicpurchasing power in the property sector, which resulted in the increase of Real Estate Inventories, the increase in projectpreparationcostandtheincreaseintheCompany'sconsortiumprojects,whichresultedintheincreaseinInvestmentinJointVenture.CashandCashEquivalentsThebalanceofcashandcashequivalentsasofJune30,2016,wasRp1,262,685,757thousand,adecreaseofRp1,297,434,908thousandor50.68%comparedtoRp2,560,120,483thousandasofDecember31,2015,whichwasprimarilyduetotheincreaseinworkingcapitalrequiredbytheCompanytofinanceitsinvestments,aswellastherescheduledpaymentofseveralprojects.AccountReceivablesThe balance of account receivables, net, as of June 30, 2015,was Rp2,374,990,378 thousand, a decrease of Rp406,989,769thousandor14.63%comparedtoRp2,781,980,156thousandasofDecember31,2015.Thedecreaseinaccountreceivableswasmainlyduetomilestonepaymentsortheprogressofprojectsinaccordancewithschedule.
RetentionReceivablesThebalanceofretentionreceivables,net,asof June30,2016,wasRp736,280,666thousand,an increaseofofRp73,332,111thousandor11.06%comparedtoRp662,948,555thousandasofDecember31,2015.TheincreaseinretentionreceivableswasprimarilyduetotheincreaseinproductionorprojectsundertakenbytheCompany.DuefromCustomerThebalanceofDuefromCustomerasofJune30,2016,wasRp4,210,195,337thousand,anincreaseofRp965,797,549thousandor29.77%comparedtoRp3,244,397,788thousandasofDecember31,2015,whichwasmainlyduetotheincreaseinsalesofmilestoneprojectsintheGeneralCivildepartmentandtheIndustrialPlantdepartment.InventoriesThebalanceofinventoryasofJune30,2016,wasRp1,125,501,670thousand,anincreaseofRp94,223,739thousandor9.14%compared to Rp1,031,277,931 thousand as of December 31, 2015. The increase was primarily due to the increase in theCompany'sinventoryinordertomaintainproductioncontinuityandstabilityofrawmaterialprice.PrepaidTaxThebalanceofprepaidtaxasofJune30,2016,wasRp733,910,977thousand,anincreaseofRp204,873,990thousandor38.73%comparedtoRp529,036,987thousandasofDecember31,2015.TheincreasewasprimarilyduetotheCompany'spolicy,whichrequiresrestitutiontobeperformedevery6monthsandtheincreaseintheCompany'ssalesandpurchases.RealEstateAssetsThebalanceofrealestateassetsasofJune30,2016,wasRp1,586,302,743thousand,anincreaseofRp460,675,258thousandor40.93%comparedtoRp1,125,627,485thousandasofDecember31,2015.Theincreasewasmainlyduetotheconstructionofproperty inprogress,amongothersTamansari theLagoon,TamansariSkyLoungeBalikpapan,andTamansari Iswaraandtheweakeningofpublicpurchasingpowerinthepropertysector,whichresultedintheincreaseofRealEstateInventories.FixedAssets,NetThebalanceofFixedAssets,net,asofJune30,2016,wasRp3,125,145,329thousand,adecreaseofRp59,254,785thousandor1.86%comparedtoRp3,184,400,144thousandasofDecember31,2015.ThiswasprimarilyduetotheconstructionofPTWikaBeton'snewplantsinKarawang,WestJavaandLampungandtheconstructionofGedungWikaTower.InvestmentinJointVentureThe balance of Investment in Joint Venture, net, as of June 30, 2016, was Rp1,896,849,621 thousand, an increase ofRp299,470,230thousandor18.75%comparedtoRp1,597,379,391thousandasofDecember31,2015.ThiswasmainlyduetotheincreaseintheCompany’sjointventureprojects.LiabilitiesTheCompany'sliabilitiesasofJune30,2016,haveincreasedbyRp797,479,525thousandor5.63%toRp14,961,784,194thousandcomparedtoRp14,164,304,669thousandasofDecember31,2015.TheincreasewasduetotheincreaseintheCompany'sShort-TermLoans.As of June 30, 2016, the Company's non-current liabilities have increased by Rp721,911,242 thousand or 6.81% fromRp10,597,534,431thousandasofDecember31,2015,toRp11,319,445,673thousandasofJune30,2016.TheincreasewasduetotheincreaseintheCompany’sShort-TermLoans.As of June 30, 2016, the Company's non-current liabilities have increased by Rp75,568,283 thousand or 2.12% fromRp3,566,770,238thousandasofDecember31,2015,toRp3,642,338,521thousandasofJune30,2016.TheincreasewasmainlyduetotheincreaseEmployeeBenefitsLiabilitiesandAdvanceforLong-TermProjects.
Short-TermLoansThebalanceofshort-termloansasofJune30,2016,wasRp3,016,535,980thousand,anincreaseofRp1,794,713,625thousandor146.89%comparedtoRp1,221,822,355thousandasofDecember31,2015,whichwasmainlyduetotheincreaseinbankloans,whichwasinlinewiththeCompany'sworkingcapitalrequirement.TaxPayablesThebalanceofTaxPayablesasofJune30,2016,wasRp276,774,618thousand,anincreaseofRp99,689,589thousandor56.29%comparedtoRp177,085,029thousandasofDecember31,2015.ThiswasmainlyduetotheincreaseintheCompany’snetsales.AdvancefromCustomersThe balance of advance from customers as of June 30, 2016,was Rp388,113,916 thousand, a decrease of of Rp89,257,980thousandor18.70%comparedtoRp447,381,896thousandasofDecember31,2015.Thedecreasewasprimarilyduetothecompletionofdeliveriesformostindustrialandrealtyproducts.AccruedExpensesThebalanceofaccruedexpensesasofJune30,2016,wasRp2,469,350,957thousand,adecreaseofofRp815,821,091thousandor24.83%comparedtoRp3,285,172,048thousandasofDecember31,2015.Thedecreaseinaccruedexpenseswasprimarilyduetothechangeofpaymentinstruments,whichutilizedbankingfacilities(L/C)or(NCL).UnearnedRevenueThebalanceofunearnedrevenueasofJune30,2016,wasRp173,596,658thousand,adecreaseofRp233,362,900thousandor57.34%comparedtoRp406,959,558thousandasofDecember31,2015.Thiswasprimarilyduetothefasterproductdeliveryandprogressrecognition,bothintheindustrialandrealtysector,whichwerereflectedintheincreasedsalescomparedtoprioryear.CurrentPortionofLongTermLoanThebalanceofcurrentportionoflong-termloanasofJune30,2016,wasRp528,189,223thousand,adecreaseofRp67,818,467thousand or 11.38% compared to Rp596,007,690 thousand as of December 31, 2015. The decreasewasmainly due to theinstallmentsoflong-termloanthatwereduein2016.EmployeeBenefitsLiabilitiesThebalanceofemployeebenefits liabilities asof June30,2016,wasRp254,910,402 thousand, an increaseofRp54,420,234thousandor27.14%compared toRp200,490,168 thousandsaofDecember31,2015.The increasewasprimarilydue to thedecreaseininterestrateofgovernmentbondsandtheincreaseinnumberofemployees,whichresultedintheincreaseoftheCompany'semployeebenefitsliabilities.DeferredTaxLiabilitiesThebalanceofDeferredTaxLiabilitiesasofJune30,2016,wasRp16,412,605thousand,anincreaseofRp5,241,879thousandor46.93%comparedtoRp11,170,726thousandasofDecember31,2015.Theincreasewasmainlyduetothedifferencebetweenfiscalandcommercialcalculationondepreciationexpense,amortizationexpenseandemployeebenefitsliabilities.AdvanceforLongTermProjectsThe balance of advance for long-term projects, net, as of June 30, 2016, was Rp1,779,644,740 thousand, an increase ofRp116,967,696thousandor7.03%comparedtoRp1,662,677,044thousandasofDecember31,2015.Thiswasmainlyduetotheincreaseinnumberofnewprojects.CurrentPortionofLong-TermLoan,netofCurrentPortionshorttermThebalanceofcurrentportionoflong-termloan,netofcurrentportionshorttermasofJune30,2016,wasRp1,591,370,774thousand,adecreaseofRp101,061,526thousandor5.97%comparedtoRp1,692,423,300thousandasofDecember31,2015.Thedecreasewasmainlyduetotheinstallmentsoflong-termloanthatweredueduringtheyear.
EquityThebalanceofequityasofJune30,2016,wasRp5,599,802,501thousand,anincreaseofofRp161,701,136thousandor2.97%comparedtoRp5,438,101,365thousandasofDecember31,2015.TheincreasewasmainlyduetotheincreaseintheCompany'sprofit.TheCompany'sCashFlowsYearEndedDecember31,2015,comparedtotheYearEndedDecember31,2014CashFlowsfromOperatingActivitiesCashflowsfromoperatingactivitiesfortheyear2015wasRp238,405,380thousand,anincreaseofRp416,096,140thousandor234.17%comparedtonetcashflowsusedinoperatingactivitiesfortheyear2014ofRp177,690,760thousand.Theincreaseinnet cash flows provided by operating activities was contributed by the increase in cash receipts from customers byRp1,784,219,729thousandor16.34%,offsetbytheincreaseinpaymenttosuppliersbyRp946,561,781thousandor9.27%.Inaddition,paymentofinteresthasalsoincreasedbyRp309,082,898thousandor52.67%.PaymentoftaxeshasalsoincreasedbyRp109,628,863thousandor29.66%.CashFlowsfromInvestingActivitiesNetcashflowsusedininvestingactivitiesfortheyear2015wasRp325,091,864thousand,anincreaseofRp943,131,751thousandor74.37%comparedtoRp1,268,223,615thousandfortheyear2014.CashFlowsfromFinancingActivitiesNet cash flows used in investing activities for the year 2015 was Rp345,914,785 thousand, a decrease of Rp2,014,184,734thousandor85.00%comparedtoRp2,360,099,519thousandfortheyear2014.ThedecreasewasmainlyduetothepaymentofbankloanstotalingRp1,685,476,859thousand.The6-monthperiodendedJune30,2016,comparedtothe6-monthperiodendedJune30,2015CashFlowsfromOperatingActivitiesNet cash flows used in operating activities for the 6-month period ended June 30, 2016,was Rp2,307,233,951 thousand, adecreaseofRp1,369,980,905 thousandor59.38%compared to the6-monthperiodended June30,2015,ofRp937,253,046thousand.Thedecreaseinnetcashflowsusedforoperatingactivitieswasduetotheincreaseinpaymentstosuppliersby21.76%oranincreaseofRp1,508,298,409comparedtopriorperiod.Inaddition,netcashflowsusedinpaymentofinteresthasincreasedby39.61%orRp67,942,907thousandcomparedtopriorperiod.Thedecreasewasalsoduetotheincreaseinpaymentoftaxesby23.33%orRp62,060,977thousandandthedecreaseindepositinterestreceiptby71.61%orRp16,844,563thousand.PaymenttoBoardofDirectorsandemployeeshasalsodecreasedby22.98%orRp27,733,372thousand.Paymentforoperatingexpensesandothershasalsodecreasedby39.99%orRp12,399,467thousand.Whereascomponentofcashflowsfromoperatingactivitiesthathasincreasedwasreceiptfromcustomers,whichhasincreasedby4.72%orRp245,033,112thousand.CashFlowsfromInvestingActivitiesNetcashflowsusedininvestingactivitiesforthe6-monthperiodendedJune30,2016,wasRp319,845,730thousand,adecreaseofRp156,403,370thousandor32.84%comparedtoRp476,249,100thousandinpriorperiod.ThedecreasewasmainlyduetothedecreaseininvestmentinjointventurebyRp120,973,146thousandandthedecreaseininvestmentinassociatedentityby97.79%orRp99,185,555thousand.CashFlowsfromFinancingActivitiesNet cash flows provided by financing activities for the 6-month period ended June 30, 2016,was Rp660,182,985 thousand,consisting of receipts frombank loans totaling Rp1,109,503,498. The cash flows from financing activitieswas also offset bypaymentofbankloantotalingRp312,185,840thousand.CapitalExpendituresThe Company’s capital expenditures consist of fixed assets and investment in Associated Entities and other Entities. TheCompany’s capital expenditures for the 6-month period ended June 30, 2016 and 2015,were Rp372,798,000 thousand andRp461,972,000thousand,respectively,Rp1,046,820,000thousandfortheyearendedDecember31,2015,andRp1,470,250,000thousandfortheyearendedDecember31,2014.
BUSINESS RISKS AsaState-OwnedEnterpriseconstructioncompany,theCompanyisnotimmunetorisks,bothinternalandexternal.
StrategicRisk
1. RiskofBusinessDevelopment2. RiskofProjectInvestment3. RiskofInvestorRelationOperationalRisk1. ContractualRisk2. PaymentRisk3. InternationalTradeRisk4. RiskofHighRawMaterialPrice5. RiskinSub-contractor/SupplierPartnerSelection6. RiskofForeignExchangeRisksAssociatedwithShareOwnershipInadditiontotherisksfacedbytheCompany,theCompany'sbusinessactivitiesandindustry,shareownershipinvolvesthefollowingrisks:1. TheconditionsofIndonesianCapitalMarketmayaffectthepriceandliquidityoftheCompany’sshares.2. TheCompany'ssharepricemayfluctuate.3. FuturesalesoftheCompany'ssharesmayaffectthemarketpriceofsuchshares.4. Theabilityofshareholderstoparticipateinfutureprivateplacementsmaybelimited.5. Thebuyersorshareholdersmaybesubjecttocertainlimitationsconcerningtherightsofminorityshareholders.
THECOMPANY’SMANAGEMENTHEREBYREPRESENTSTHATTHECOMPANYHASDISCLOSEDALLMATERIALBUSINESSRISKSTHAT ARE PREPARED IN ORDEROF SIGNIFICANCE OF SUCH RISKS TO THE COMPANY’S AND ITS SUBSIDIARIES’ BUSINESSACTIVITIESANDFINANCIALPERFORMANCE. SIGNIFICANT EVENT SUBSEQUENT TO THE DATE OF INDEPENDENT
AUDITOR'S REPORT TherearenosignificanteventswithmaterialimpacttotheCompany'sfinancialconditionandoperatingresultsthatoccurredsubsequenttothedateofIndependentAuditor’sReport,namelyJune30,2016,fortheconsolidatedfinancialstatementsfortheperiodendedJune30,2016,requiringadisclosureinthisProspectus.ThesaidconsolidatedfinancialstatementswereauditedbythePublicAccountantFirmSoejatna,Mulyana&Partners(memberfirmofTPL&AssociateMalaysia),anindependentpublicaccountant,whichauditreportwassignedbythepublicaccountant,Drs.SafaatWidjajabrata,CA,CPAasofAugust15,2016,withunqualifiedopinion.
DESCRIPTION OF THE COMPANY BriefHistoryoftheCompany TheCompanywasinitiallyaStateCompanyestablishedpursuanttotheGovernmentRegulationNo.64of1961datedMarch29,1961,concerningtheEstablishmentofStateCompanyWidjajaKarjaunderthenamePerusahaanNegaraBangunanWidjajaKarja.Furthermore,basedonGovernmentRegulationNo.40of1971datedJuly22,1971,PerusahaanNegaraBangunanWidjajaKarjawasdeclaredtobedissolvedandtransferredintoaLimitedLiabilityCompany(Persero)establishedpursuanttotheLawsoftheRepublicofIndonesiaasstipulatedinthedeedofLimitedLiabilityCompanyNo.110datedDecember20,1972,drawnupbeforeDianParamitaTamzil,actinginlieuofDjojoMuljadi,S.H.,aNotaryinJakartajunctodeedofAmendmentNo.106datedApril17,1973,drawnupbeforeKartiniMuljadi,S.H.,aNotaryinJakarta,whichwasapprovedbytheMinisterofJusticeoftheRepublicofIndonesiabyvirtueofdecreeNo.Y.A.5/165/14datedMay8,1973,andwasregisteredintheJakartaDistrictCourtunderNo.1723and1724datedMay16,1973,andwasannouncedinSupplementNo.683totheStateGazetteoftheRepublicofIndonesiaNo.76datedSeptember21,1973(“TheCompany'sDeedofEstablishment”).
AsstipulatedintheGovernmentRegulationNo.53of2007concerningtheChangesinStructureoftheState’sShareOwnershipthroughtheIssuanceandSaleofNewSharesinPerusahaanPerseroan(Persero)PTWijayaKarya,theCompanyconductedanInitialPublicOffering,whichwasfollowedbythechangeofstatusandnametoPTWijayaKarya(Persero)Tbk,andofficiallylisteditssharesontheStockExchangeonOctober29,2007,(“InitialPublicOffering”).
PursuanttoArticle3oftheCompany'sArticlesofAssociationassetforthintheDeedNo.03/2015,theaimsandobjectivesoftheCompanyistoengageintheconstructionindustry,fabricationindustry,leasingservices,agencyservices,investment,agri-industry,energy,renewableenergyandconversionenergyindustry,railwayoperation,portoperation,airportoperation,logistic,trade, engineering procurement construction, estate development andmanagement, construction, information technology,engineeringandplanningskillsupdateservicestoproducehigh-qualityandcompetitivegoodsand/orservicestogenerateprofitinordertoincreasetheCompany'svaluesbyimplementingtheprinciplesofLimitedLiabilityCompanies. AssetforthintheDeedofResolutionsoftheAnnualGeneralMeetingofShareholdersofPerusahaanPerseroan(Persero)PT
WijayaKaryaTbk,abbreviatedasPTWika(Persero)TbkNo.82datedApril28,2016,drawnupbeforeFathiahHelmi,S.H.,aNotaryinJakarta,whichwasreceivedandrecordedinthedatabaseoftheLegalEntityAdministrationSystemunderNo.AHU-AH.01.03-0047903datedMay12,2016,andwasregisteredintheCompanyRegisterunderNo.AHU-0058837.AH.01.11.Tahun2016datedMay12,2016,thecompositionsoftheBoardofCommissionersandBoardofDirectorsoftheCompanyareasfollows:ManagementandSupervisionBoardofCommissionersPresidentCommissioner : MudjiadiIndependentCommissioner : NurrachmanIndependentCommissioner : ImasAanUbudiahCommissioner : LiliekMayasariCommissioner : FreddyR.SaragihCommissioner : EddyKristantoBoardofDirectors:PresidentDirector : BintangPerbowoDirector : GandiraGutawaSumapradjaDirector : DestiawanSoewardjonoDirector : IGustiNgurahAskharaDanadiputraDirector : BambangPramujoDirector : AntoniusNicholasStephanusKosasihDescriptionofSubsidiariesAsof June30,2016, theCompanyhas6directlyownedSubsidiariesand1 indirectlyownedSubsidiarywithmore than50%ownership,whichareconsolidatedintheCompany'sfinancialstatements.Thecompaniesare:
Subsidiaries
CompanyName Domicile LinesofBusiness : Percentageof
OwnershipYearof
Investment
YearofCommercialOperation
SUBSIDIARIES(DIRECTOWNERSHIP)
WTON BekasiEngageintheconcretetradingandindustry,constructionserviceandotherrelatedbusinessfields.
62.71% 1997 1997
WR JakartaEngageintherealestate,propertyandservices,exceptlegalandtaxservices.
85.41% 2000 2000
WKGSouthJakarta
Conductbusinessactivitiesin(i)constructionandengineeringindustry;(ii)wholesaleconstructionservicewithmilestoneorturnkey/BuildOperateTransfer(BOT)scheme;(iii)managementandleaseofbuildings/integratedtradecenters;(iv)Tradeandmaintenanceofconstructionequipmentandmaterial;
(v)constructionandengineeringskillupgradeservice,particularlythosethatconformtotheprinciplesoflimitedliabilitycompanies;(vi)RealEstate,asrealestatedeveloper;(vii)Property,aspropertyinvestor;(vii)supportingindustryforbuildingconstruction.
99% 2008 2008
WIKEast
Jakarta
Engageinthefactoryindustry,conductgeneraltrading,services,agri-industry,mining,energyandconstructionservices.
96.5% 2000 2000
CompanyName Domicile LinesofBusiness : Percentageof
OwnershipYearof
Investment
YearofCommercialOperation
WRKSouthJakarta
Conductbusinessactivitiesinconstructionservices,engineeringprocurementandconstructionservices,fabricationservices,operationandmaintenanceservicesandinvestmentactivitiessupportingthesaidbusinessactivities.
90.04% 2008 2008
BITUMENSouthEastSulawesi
Conductbusinessactivitiesinmining,constructionandminingmaterialindustry,tradeanddistribution,transportationandportservices.
99% 2013 2013
SUBSIDIARIES(INDIRECTOWNERSHIP)
CLT BatamEngageintheconcretetradingandindustry,constructionserviceandotherrelatedbusinessfields.
99.5%
ThroughWTON
2014 2014
BUSINESS ACTIVITIES AND PROSPECTS OverviewTheCompany’svisioninconductingitsbusinessactivitiesistobecomeoneofthebestcompaniesinEngineering,Procurement&Construction(EPC).TheCompany’smainstrategiestoachieveitsvisionistohavediversifiedbusiness,whileremainingfocusedontheCompany'smainbusinessthroughverticalintegrationbetweenownedbusinesses(backwardandforwardintegration),whichallowstheCompanytoprovidecomprehensivesolutionstocustomers.ThevisionaffirmstheCompany'sactivitieswiththeaimsandobjectivestocreateasustainablegrowthforstakeholders.The Company’s ability to provide superior services, comprehensive services, and continuous business prospects are directlyrelatedtoitscompetitiveadvantages,amongothers,asfollows:- LeadingSOEengagedintheconstructionsector- Proventrackrecords- Experiencedmanagementandexperts- OperationalAreas BusinessActivities TheCompanypresentlyhas4(four)businesssegments,includingInfrastructure&building,EnergyandIndustrialPlant,Realty&Property,and Industry. Incarryingout the fivebusiness segments referred toabove, theCompany is supportedby8 (eight)OperationDepartmentsand6(six)Subsidiariesand12(twelve)AssociatedEntities.PresentedbelowisthedescriptionoftheCompany'sfourbusinesssegments:A. Infrastructure&BuildingBusinessSegmentTheconstructionbusinesssegmentiscomprisedof3StrategicBusinessUnits(SBUs),namelytheCivilConstructionSBU,BuildingConstructionSBU,andSteelConstructionSBU.TheconstructionbusinesssegmentismanagedbytheGeneralCivilDepartment1,GeneralCivilDepartment2,GeneralCivilDepartment3,OverseasDepartment,BuildingDepartment,andtwosubsidiaries:WIKAIndustri&Konstruksi,WIKAGedung.B. EnergyandIndustrialPlantBusinessSegmentTheEnergyandIndustrialPlantbusinesssegmentiscomprisedoftwoscopeofworks,namelytheEngineering,Procurement&Construction(EPC)SBUandOperation&MaintenanceSBU.
C. IndustrialBusinessSegmentThebusinesssegmentiscomprisedof2sub-segments,namelythePrecastConcreteIndustrySegment,SteelFabricationSegmentandBitumenSegment. To support its core competencies, thepillarof theCompany’smanufacturing industry, theCompanyprovidesanarrayofproductssupportingconstructionservicessuchas:•PrecastConcrete,namely:Precastconcreteproductandnaturalresourcesmanagement•IndustryFacilities,namely:SteelFabricationthatproducesSteelConstructionproducts,aluminiumcasting,plasticinjection.•Bitumen,namely:granularasphalt,extractionasphalt. D. Realty&PropertyBusinessSegmentTheRealty&PropertyBusinessSegmentismanagedbyPTWIKARealty.TheCompanyhas85.26%ownershipinPTWIKARealty.TheRealty&Propertybusinesssegmentcarriesoutworksintherealty,propertyserviceandservicebusinesssuchasthelandedhouse,high-rise(apartment,condotel,mixeduseoffice),andindustrialestateconditioning.Tostrengthenitsmarketpresence,theCompanyincorporatesanumbrellabrandunderthenameTamansari.ThisbusinesssegmentisoperatedbytheBuildingDepartment,whichundertakesthegovernmentandSOEprojectsundertheBuildingDepartment,whileprojectsfromtheprivatesectorsaremanagedbyseparatesubsidiaries,namelyWIKAGedungandWIKARealty.Inthisbusinesssegment,theCompanyalsoperformworksforfacilitiesbuildingssuchashospitals,airportterminalsandtrainstations,educationalfacilities,sportfacilities,officebuildings,mallsandotherrecreationalfacilities.Marketing InanefforttofulfillitsvisiontobecomeoneofthebestEPCcompaniesinSouthEastAsiaby2020,theCompanywillcontinuetopursuevariousbusinessopportunitiesintheconstructionindustry,bothinIndonesiaandinothercountries.
TheCompanyhasalsoexpandeditsconstructionmarketsharetoanumberofcountriesinAsiaandAfrica,suchasAljazair,Libya,UnitedArabEmirates,BruneiDarussalamandTimorLeste.Inadditiontotheexpansionofconstructionmarket,theCompanyhasalsodevelopeditsprecastconcreteindustryinoverseasbyopeningafactoryinAljazair,andplanstoopenaprecastconcretefactoryinMyanmarinthenearfuture.
The Company's marketing efforts are decentralized, in accordance with the authority of each Business Department andSusbidiary. In the construction service business, new marketing activities can be performed if the users have trusted thecontractor.Theforegoingisrelatedtothenatureoftheconstructionservice,whichofferssomethingintangibleataprice,qualityandtimeofdeliverythathavebeendetermined.Theproductionprocess,intheformofprojectexecution,isperformedattheuser’ssitebasedonthemutuallyagreedcontractbetweentheUserandServiceProvider. Marketing activities covermarketing areas in all parts of Indonesia, which are served by 7 regional offices and 5 overseasrepresentativeoffices. The projects secured by the Company originate from tender and appointment. The following table presents the history ofcontractssecuredbytheCompanyfrom2011uptoJune30,2016:
(InmillionsofRupiah)Description 2011 2012 2013 2014 2015 June30,2016
Tender in which theCompanyparticipated
30,341,000 42,766,776 43,971,413 43,460,529 85,374,936 69,158,763
TenderWon 13,568,485 17,125,319 17,731,027 17,631,937 25,221,756 9,105,950Competitiveness(%) 44.72 40.04 40.32 40.57 29.54 13.17
Whereasthecontractssecuredduringtheyearbybusinesssegmentfrom2011uptoJune30,2016,areasfollows:
(InmillionsofRupiah)Description 2011 2012 2013 2014 2015 June30,2016Infrastructure&Building 6,411 9,443 9,182 9,817 19,077 4,651Energy&IndustrialPlant 4,215 3,595 4,325 3,634 1,034 2,244Industry 2,141 2,624 2,992 2,828 3,734 1,582Realty&Property 801 1,463 1,244 1,354 1,376 232Amount 13,568 17,125 17,743 17,633 25,221 8,709
CompetitionandCustomers CompetitionSetoutbelowareanumberofmajorconstructioncompanies,whicharetheCompany'scompetitorsandwhichsharesarelistedontheIndonesiaStockExchange:No. CompanyName BusinessActivities Competitorintermsof1. AdhiKarya ConstructionService Sales2. WaskitaKarya ConstructionService Sales3. RealEstateDevelopment ConstructionService Sales
Giventhecompetitionintheconstructionindustry,theCompanybelievesthattheCompany'saveragemarketshareis2%,i.e.calculatedbycomparingthemarketsecuredbytheCompanytothepotentialconstructionmarketwhichinformationisavailableforpublicasdetailedbelow:
(IntrillionsofRupiah)Description 2011 2012 2013 2014 2015June30,2016
National* 304 368 445 454 505 655TheCompany'sShareRealization 13 17 17 17 25 38(%) 4.2 4.6 3.1 3.0 4.9 6
Note*):BasedonStatisticsIndonesiaCustomerTheCompany'smaincustomersincludetheGovernmentofIndonesiaandSOEssuchasthePublicWorksAgency,PTPertamina(Persero) andPT Perusahaan ListrikNegara (Persero).However, in linewith Indonesia's economic development, the privateconstructionindustrycontinuestogrow.TheCompanyviewsthisdevelopmentasasubstantialmarketopportunities.TheCompany’scustomerscanbecategorizedinto3(three)maingroups,namely,theGovernment,SOE,andPrivateSectorThefollowingtablepresentsthecontributionofeachgroupforthelast5(five)years:
YearGovernment SOE PrivateSector Total
(Rpbillion) % (Rpbillion) % (Rpbillion) % (Rpbillion)2011 3,932 28.98% 5,768 42.51% 3,868 28.51% 13,5682012 3,136 18.31% 5,249 30.65% 8,740 51.04% 17,1252013 4,312 24.30% 7,221 40.70% 6,210 35.00% 17,7432014 2,697 15.30% 5,112 29.00% 9,810 55.70% 17,6312015 3,111 29.86% 322 3.09% 6,988 67.05% 10,423June30,2016 1,426 18.82% 1,914 25.26% 4,237 55.92% 7,578
BusinessStrategiesTheCompanyaimstobeoneofthelargestcompaniesinSouthEastAsia.Inordertoachievesuchgoal,theCompanyspecificallyimplementsanumberofmainstrategies,amongothers:• MarketingStrategy:SelectiveMarket• FinancialStrategy:CentralizedandIndependentFinancing• OperationalStrategy:QSHE,CentralizedProcurement,EfficiencyProgramandRiskMitigation• InvestmentStrategy:StrengthenedForward-BackwardIntegration• HumanCapitalStrategyCompetencyandDignity-BasedDevelopment
CONSOLIDATED EQUITY ThefollowingtablepresentstheCompany'sconsolidatedequityasofJune30,2016,December31,2014,2015,and2016,whicharederivedfromtheCompany’sconsolidatedfinancialstatementswhichhavebeenauditedwithunqualifiedopinionforthesix-monthperiodendedJune30,2016,andDecember31,2015,and2014andtheyearsthenendedbythePublicAccountingFirmKAPSoejatna,Mulyana&Partners.
(InthousandsofRupiah)
DESCRIPTION AsofDecember31 AsofJune302014 2015 2016
EQUITY Equityattributabletoownersofparententity Sharecapital 614,922,500 614,922,500 614,922,500TreasuryStock (10,272,110) (10,272,110) (10,272,110)AdditionalPaid-inCapital 715,858,789 715,858,789 715,858,789ChangesinEquityofSubsidiaryCompany 1,127,249,357 1,127,249,357 1,127,249,357OtherComponentEquity
DifferenceofAssetValuation 23,526,182 14,626,146 14,626,146RemeasurementEmployeeBenefit (106,750,583) (100,444,293) (126,915,667)
Retainedearnings 1,523,052,638 2,013,224,280 2,174,105,213SubTotal 3,887,586,773 4,375,164,669 4,509,574,228
Non-ControllingInterest 989,167,968 1,062,936,696 1,090,228,273TotalEquity 4,876,754,741 5,438,101,365 5,599,802,501
DIVIDEND POLICY TheCompany has a policy to distribute cash dividends to all of the Company's shareholders,with due consideration to theCompany'sfinancialpositionorsoundnessandwithoutprejudicetotherightsoftheCompany'sGeneralMeetingofShareholderstodeterminesuchdividenddistributions,whichshallbedetermineintheCompany'sGeneralMeetingofShareholders.PresentedbelowarethedescriptionsoftheCompany'sdividendpaymentsforthe2011upto2015fiscalyear,whicharepaidonthefollowingyear.
Year Dividend(IDR) Ratio Dividend/share(IDR) PaymentDate
2015 125,014,252,275 20% 20.35 May27,2016
2014 123,036,754,103 20% 20.03 May22,2015
2013 170,813,909,760 30% 27.82 May13,2014
2012 136,277,605,800 29% 22.32 June14,2013
2011 104,151,182,400 29% 17.28 June11,2012
TAXATION ProspectivePreemptiveRightholdersinthisRightsIssueIareexpectedtoconsulttheirrespectivetaxconsultantsaboutthetaxconsequencesthatmayarisefromthepurchase,possessionandsaleofPreemptiveRightsacquiredthroughthisRightsIssueI.
CAPITAL MARKET SUPPORTING INSTITUTIONS AND PROFESSIONALS
TheCapitalMarketSupportingInstitutionsandProfessionalsparticipatinginthisRightsIssueIareasfollows:PublicAccountant : PublicAccountingFirmSoejatnaMulyana&PartnersLegalConsultant : Tumbuan&Partners
Notary : NotaryOfficeofFathiahHelmi,S.H.
SecuritiesAdministrationBureau
: PTDatindoEntrycom
TERMS OF THE COMPANY'S SHARE SUBSCRIPTION
1. EligibleSubscribersThe Shareholders whose names are recorded in the Company's SR as of October 10, 2016, shall be entitled to submit thePreemptiveRightSharesubscriptionwithrespecttothisRightsIssueI,providedthateachholderof●(●)existingshareshallbeentitledto●(●)PreemptiveRight,whereasevery1(one)PreemptiveRightshallbeentitledtosubscribe1(one)PreemptiveRightShareatanominalvalueofRp[●]([●]Rupiah)pershareatanExercisePriceofRp[●]([●]Rupiah)pershare.Subscribersentitledtopurchasenewsharesare:a. TheholdersofPreemptiveRightsCertificateswhosenamesarestatedonthePreemptiveRightsCertificateorthosewho
havelegitimatelyacquiredPreemptiveRightsinaccordancewiththeprovisionsoftheprevailinglawsandregulations;orb. TheholdersofElectronicPreemptiveRightsregisteredintheCollectiveDepositoryatKSEIupthelastdateofthePreemptive
Rightstradingperiod.Thesubscribersmayconsistofindividuals,Indonesianand/orForeignCitizenand/orInstitutionsand/orLegalEntities/BusinessEntities,whetherIndonesian/ForeignasstipulatedintheCapitalMarketLawandtheimplementingregulationsthereof.In order to facilitate the process and ensure the eligible shareholders registration schedule ismet, the shareholders of theCompany's shares in the form of certificates intending to exercise their rights to acquire Preemptive Rights and have notregistered their transferof shareownershipsareadvised to registerat theSecuritiesAdministrationBureaubefore the finaldeadlinefortheregistrationofShareholders,whichshallbeOctober18,2016.2. DistributionofPreemptiveRightsForShareholderswhose sharesareadministered in theCollectiveDepository systematKSEI, thePreemptiveRights shallbedistributedelectronicallytotheSecuritiesAccountsatKSEIthroughtheSecuritiesAccountsoftherespectiveMembersoftheStockExchangeorCustodianBanksatKSEIbynolaterthan1(one)ExchangeDayafterthedateofregistrationofshareholdersentitledtoPreemptiveRightsintheSR,whichshallbeOctober11,2016.TheProspectusesandimplementationguidelinesshallbe distributed by the Company through KSEI,whichmay be obtained by the Company's shareholders from their respectiveMembersofStockExchangeorCustodianBanks.ForshareholderswhosesharesarenotadministeredintheCollectiveDepositoryatKSEI,theCompanyshallissueaPreemptiveRightCertificateunderthenameoftheshareholders,whichmaybeobtainedbytheeligibleshareholdersortheirrepresentativesattheSABoneverybusinessdaysduringworkinghoursstartingfromOctober11,2016bypresenting:a. Aphotocopyofvalidpersonalidentification(forindividualshareholders)andaphotocopyoftheArticlesofAssociationfor
(for legal entity/institutional shareholders) The Shareholders shall also be required to present the original of suchphotocopies.
b. Theoriginal copyof power of attorney (in the event of representative), supplementedwith photocopies of other validpersonalidentification,bothfortheprincipalandtheagent(theoriginalcopyofidentificationsoftheprincipalandagentmustbepresented).
3. PreemptiveRightsExercise/RegistrationProceduresPreemptiveRightsmaybeexercisedfromOctober12,2016untilOctober18,2016.a. TheholdersofPreemptiveRightsintheCollectiveDepositoryatKSEIintendingtoexercisetheirPreemptiveRightsshallfilea
requesttoexercisesuchrightsthroughtheMembersoftheStockExchange/CustodianBanksappointedastheirsecuritiesmanager.Subsequently,MembersoftheStockExchange/CustodianBanksshallsubmittheexerciserequestorinstructionthroughtheCentralDepository-BookEntrySettlementSystem(C-BEST) inaccordancewiththeproceduresstipulatedbyKSEI. In carrying out the exercise instruction, Members of the Stock Exchange/Custodian Banks must comply with thefollowingprovisions:i. HoldersofPreemptiveRightsshallprovidethePreemptiveRightsexercisefunduponsubmissionofsuchrequest.ii. The adequacy of Preemptive Rights and payment fund to exercise the Preemptive Rightsmust be available at the
SecuritiesAccountsoftheholdersofPreemptiveRightsexercisingtheirrights.Onthenextbusinessday,KSEIshallsubmitthePreemptiveRightsHolderRegisterexercisingtheirrightstotheCollectiveDepositoryatKSEIanddepositthepaymentfundtoexercisesuchPreemptiveRightstotheCompany'sBankAccount.
NewSharesfromexercisedPreemptiveRightsshallbedistributedbytheCompany/theCompany'sSABelectronicallytotheaccounts determined by KSEI to be further distributed by KSEI to each security account of the respective Holders ofPreemptive Rightswho exercised their rights. New Shares from exercised Preemptive Rights shall be distributed by theCompany/theCompany'sSABbynolaterthan2(two)businessdaysfromthereceiptofsuchrequesttoexercisebyKSEIandafterthepaymentfundsarereceivedingoodfundattheCompany'sBankAccount.
b. The holders of Preemptive Rights in the form of certificate/Preemptive Rights Certificate intending to exercise theirPreemptiveRights shall submit the request toexercise suchPreemptiveRights to theCompany's SAB,by submitting thefollowingdocuments:i. TheoriginalcopyofsignedandcompletePreemptiveRightCertificate.ii. Theoriginalpaymentslipbywayoftransfer/book-entrysettlement/giro/cheque/cashtotheCompany’saccountfrom
thebankwherethepaymentisdeposited.iii. PhotocopyofvalidResidentCard(KTP)/Passport/TemporaryStayPermitCard(KITAS)(forindividual),oraphotocopyof
ArticlesofAssociationandsupportedbyBoardofDirectors/Managementcomposition(forInstitution/LegalEntity).iv. Theoriginalcopyofpowerofattorney(intheeventofrepresentative)withRp6,000(sixthousandRupiah)stampduty,
supplemented with photocopies of valid Resident Card (KTP)/Passport/Temporary Stay Permit Card (KITAS) of thePrincipalandAgent.
v. IntheeventthattheholdersofthePreemptiveRightsintendtohavetheNewSharesfromexercisedPreemptiveRightsinelectronicform,theexerciserequestshallbesubmittedtotheCompany'sSABthroughtheappointedMembersoftheStockExchangeorCustodianBanksbysubmittingthefollowingadditionaldocuments:• The original copy of power of attorney from the holders of the Preemptive Rights to theMembers of the Stock
Exchange or Custodian Banks to submit the request to exercise Preemptive Rights and undertake the securitiesmanagementofsharesfromexercisedPreemptiveRightsattheCollectiveDepositoryatKSEIonbehalfofthePrincipal.
• TheoriginalcopyofsignedandcompleteSecuritiesDepositFormissuedbyKSEI.TheCompanyshallissuethesharesfromexercisedPreemptiveRightsinthephysicalformofCollectiveShareCertificate(CSC)intheeventthattheholdersof Preemptive Rights Certificate do not intend to have their shares from exercised Preemptive Rights to beadministeredintheCollectiveDepositoryatKSEI.
EachandeveryconversioncostpertainingtothetransferoftheCompany'ssharesfromcertificatetoelectronicformand/orviceversafromelectronicformtocertificateshallbeentirelypaidandbornebytheconcernedshareholdersoftheCompany.RegistrationtoexercisePreemptiveRightsCertificatesshallbeconductedattheofficeoftheCompany’sSAB’sduringbusinessdaysandworkinghours(MondaytoFriday,09.00-15.00WesternIndonesianTime).In the event that the Preemptive Rights Certificates are not completed in accordance with the shares subscriptionguidelines/requirementsstatedonthePreemptiveRightsCertificateandintheProspectus,thesubscriptionmayberejected.Preemptive Rights shall be deemed exercised only when such payments have been proved to be in good funds in theCompany'sBankAccountinaccordancewiththerequirementsstipulatedinthetermsofsubscription.
4. AdditionalSharesSubscriptionEligibleShareholderswhodonotselltheirPreemptiveRightsorbuyers/holdersofPreemptiveRightswhosenamesarestatedonthePreemptiveRightsCertificate,ortheholdersofPreemptiveRightsintheCollectiveDepositoryatKSEI,mayfileadditionalshares subscription inaddition to theirexisting rightsby filling in theadditional shares subscriptioncolumnprovidedon thePreemptiveRightsCertificateorAdditionalShareSubscriptionForminasumofnolessthan100sharesoranymultiplesthereof.a. HoldersofPreemptiveRightsintheformofcertificate/PreemptiveRightsCertificateintendingtohavetheNewSharesfrom
their allotment in electronic form shall file a request to the Company’s SAB through the Members of StockExchange/CustodianBankbysubmittingthefollowingdocuments:- TheoriginalcopyofAdditionalShareSubscriptionForm(SSF)thathasbeenfilledincompletelyandcorrectly.- TheoriginalcopyofthepowerofattorneyfromtheHoldersofPreemptiveRightstotheMembersofStockExchangeor
CustodianBankstofiletheAdditionalNewSharesSubscriptionrequestsandundertakethesecuritiesmanagementofNewSharesfromallotmentintheCollectiveDepositoryatKSEIandotherauthorizationswhichmayhavebeengiveninrelationtothesubscriptionofAdditionalNewSharesonbehalfofthePrincipal.
- PhotocopyofvalidResidentCard(KTP)/Passport/TemporaryStayPermitCard(KITAS)(forindividual),oraphotocopyofArticlesofAssociationandsupportedbyBoardofDirectors/Managementcomposition(forInstitution/LegalEntity).
- Theoriginalpaymentslipbywayoftransfer/book-entrysettlement/giro/cheque/cashtotheCompany’saccountfromthebankwherethepaymentisdeposited.
- The original copy of Securities Deposit Form issued by KSEI, which has been filled in completely for the purpose ofdistributingsharesfromexercisedpreemptiverightsbytheSAB.
b. HoldersofPreemptiveRightsintheformofcertificate/PreemptiveRightsCertificateintendingtohavetheNewSharesfrom
theirallotmenttoremaininthethephysicalform/certificatesshallfilearequesttotheCompany’sSABthroughtheMembersofStockExchange/CustodianBankbysubmittingthefollowingdocuments:- TheoriginalcopyofAdditionalSSFthathasbeenfilledincompletelyandcorrectly.- PhotocopyofvalidResidentCard(KTP)/Passport/TemporaryStayPermitCard(KITAS)(forindividual),oraphotocopyof
ArticlesofAssociationandsupportedbyBoardofDirectors/Managementcomposition(forInstitution/LegalEntity).
- Theoriginalcopyofpowerofattorney(intheeventofrepresentative)withRp6,000(sixthousandRupiah)stampduty,supplemented with photocopies of valid Resident Card (KTP)/Passport/Temporary Stay Permit Card (KITAS) of thePrincipalandAgent.
- Theoriginalpaymentslipbywayoftransfer/book-entrysettlement/giro/cheque/cashtotheCompany’saccountfromthebankwherethepaymentisdeposited.
c. HoldersofPreemptiveRightsintheCollectiveDepositoryatKSEIshallfillinandsubmittheAdditionalSSFwhichhavebeen
distributedsupplementedbythefollowingdocuments:- TheoriginalcopyofsettledexerciseinstructionsconductedinC-BESTaccordingtothenameoftheconcernedHoldersof
PreemptiveRights(onlyforholdersofPreemptiveRightsintheCollectiveDepositoryatKSEIwhohaveexercisedtheirrightsontheC-BESTsystem).
- The original copy of Securities Deposit Form issued by KSEI, which has been filled in completely for the purpose ofdistributingsharesfromexercisedpreemptiverightsbytheSAB.
- Theoriginalpaymentslipbywayoftransfer/wire/giro/cheque/cashtotheCompany’saccountfromthebankwherethepaymentisdeposited.
PaymentforsuchadditionalsubscriptionshallbemadeandmustbereceivedingoodfundsintheCompany'sbankaccountbyno later thanOctober20,2016.Subscriptionsthat fail tomeettheguidelinesaccordingtothetermsofsubscriptionmayberejected.5. AllotmentofAdditionalSharesSubscriptionintheRightsIssueITheallotmentofadditionalsharessubscriptionwillbedeterminedonOctober21,2016,subjecttothefollowingprovisions:a. Intheeventthatallsubscribedshares,includingadditionalsharessubscription,donotexceedthetotalnumberofshares
offeredinthisRightsIssueI,thenallsubscriptionofadditionalsharesshallbefulfilled;b. Intheeventthatallsubscribedshares,includingadditionalsharessubscription,exceedthetotalnumberofsharesoffered
inthisRightsIssueI,thenthesubscribersplacingadditionalsharessubscriptionsshallbesubjecttotheallotmentsysteminproportiontotheadditionalsubscriptionofPreemptiveRightsexercisedbyeachshareholderplacingsuchadditionalsharesubscriptions.
6. TermsofPaymentforHoldersofPreemptiveRightsCertificates(OutsideKSEI’sCollectiveDepository)andAdditionalNew
SharesSubscriptionsPaymentofthesharessubscriptionsinrelationtotheRightsIssueIwhichsubscriptionsarefileddirectlytotheCompany'sSABshallbepaid in fulland ingoodfunds inRupiahcurrencyuponsubscriptions,bywayofcash/cheques/bilyetgiro/book-entrysettlement/transferbystatingthePreemptiveRightsCertificateNumberorAdditionalSSFNumberandsuchpaymentsshallbetransferredtotheCompany’sbankaccount(the“Company’sBank”)statedbelow:
Bank●Branch:Jl.[●]
AccountNumber:A/C.[●]Underthenameof:PT●
Allchequesandbankdraftsreceivedshallbeimmediatelyendorseduponreceipt.Intheeventthatsuchchequesorbankdraftsaredishonoredbythedrawingbankuponendorsement,thePreemptiveRightsSharessubscriptionsshallbeconsideredvoid.Intheeventofpaymentbywayofcheques/book-entrysettlement/bilyetgiro,thenpaymentdateshallbeconsideredbasedonthedate that such cheques/book-entry settlement/bilyet giroare received in good funds in theCompany'sbankaccount statedabove.For subscriptions of additional Preemptive Rights Shares, payments shall be made on the day of subscription, where suchpaymentsshallbereceivedingoodfundsintheCompany'sbankaccountbynolaterthanOctober20,2016.AllcoststhatmayarisewithrespecttothesharessubscriptionsinrelationtothisRightsIssueIshallbebornebythesubscribers.Sharessubscriptionsthatfailtosatisfythetermsofpaymentshallbeconsideredvoid.7. ReceiptofShareSubscriptionTheCompany,throughtheCompany'sSABreceivingthePreemptiveRightsSharesubscriptionrequestsshallprovidestampedandsignedReceiptofShareSubscriptionstothesubscribersasevidenceofPreemptiveRightsShareSubscription,whichshallsubsequentlybeusedasoneoftheevidenceduringthecollectionofthePreemptiveRightsShares.HoldersofPreemptiveRightsintheCollectiveDepositoryatKSEIshallreceiveconfirmationontherequeststoexercisePreemptiveRightsfromC-BESTatKSEIthroughtheAccountHoldersatKSEI.8. CancellationofShareSubscription
TheCompany reserves the right to cancel thePreemptiveRights Share subscriptions,whether inpartor inwhole,withdueconsiderationtotheprevailingrequirements.NotificationconcerningcancellationofthePreemptiveRightsSharesubscriptionsshall be delivered by allotment confirmation form and the refund of subscription fund to the members of the stockexchange/custodianbanks/orholdersofsharesintheformofcertificates.OthermattersthatmayresultinthecancellationofthePreemptiveRightsSharesubscriptionsare,amongothers,asfollows:a. Failure to complete the Preemptive Right Certificates or Additional SSF in accordance with the guidelines/terms of
subscriptionofNewSharesstatedonthePreemptiveRightCertificatesandintheProspectus;b. Failuretosatisfythetermsofpayment;c. Failuretosatisfytherequirementsconcerningthecompletenessofsubscriptiondocuments.IntheeventthattherearepartiesthatareprohibitedtoexercisetheirPreemptiveRightsassuchconversionofPreemptiveRightstosharesisprohibitedbytheprevailinglaw,butsuchpartiescontinuestosubscribetotheSharesandpaythesubscriptionfund,theCompanyshallhavetherighttodeemsuchPreemptiveRightsorotherPreemptiveRightsdocumentationsubmittedbysuchpartiesasinvalidandtoreturnallthesubscriptionfundpaidinRupiahcurrencybytransferringsuchfundtothebankaccountunder the nameof the said subscribers. TheCompany shall refund the subscription by no later than 2 (two) BusinessDayssubsequenttotheAllotmentDate.Refundsmadeuntilsuchdateshallnotbesubjecttointerest.9. RefundofSubscriptionIntheeventoffailuretofulfilltheadditionalPreemptiveRightsShares,whetherinpartorinwhole,orintheeventofcancellationofsharesubscriptions,theCompanyshallrefundsuchsubscriptions,whetherinpartorinwhole,inRupiahcurrencybywayoftransfertothebankaccountunderthenameofthesubscribers.TheCompanyshallrefundthesubscriptiononOctober25,2016,(bynolaterthan2(two)BusinessDayssubsequenttotheAllotmentDate).RefundsmadeuntilOctober25,2016,shallnotbesubjecttointerest.Intheeventoflatenessinrefundingthesubscriptionbymorethan2(two)BusinessDayssubsequenttotheAllotmentDate,therefundsumshallincludethepenalty,whichshallbecalculatedstartingthe3rd(third)businessdaysubsequenttotheAllotmentDateuntilthedateofrefund,whichshallbecalculatedbasedontheannualinterestrateof1(one)monthtimedepositatthebankwheresuchfundisplaced.TheCompanyshallnotbesubjecttofineforthelatenessinrefundingthesharesubscriptionfundifsuchlatenessisduetothesubscribers’errorinstatingthenameofthebankandthebankaccountnumber.Refund forHolders of PreemptiveRights in the collective depository at KSEIwhoexercise their rights throughKSEI shall beperformedbyKSEI.10. DeliveryofSharesfromExercisedPreemptiveRightsSharesfromExercisedPreemptiveRightsforsubscribersexercisingtheirPreemptiveRightsaccordingtotheirrightsthroughKSEI,shallhavetheirsharescreditedtothesecuritiesaccountin2(two)businessdaysaftertheinstructionstoexercisePreemptiveRightsarereceivedfromKSEIandthepaymentshavebeenreceivedingoodfundsintheCompany'sbankaccount.SharesfromexercisedPreemptiveRightsforholdersofPreemptiveRightsintheformofcertificateexercisingtheirPreemptiveRightsaccordingthroughtheirrightsshallreceivetheCollectiveShareCertificateorsharesintheformofcertificatesbynolaterthan2(two)businessdaysaftertherequestsarereceivedbytheCompany'sSABandthepaymentshavebeeneffective(ingoodfunds)intheCompany'sbankaccount.WhereastheCollectiveShareCertificateofthePreemptiveRightsSharesfromtheallotmentofadditionalPreemptiveRightsSharessubscriptionshallbeavailableorshallbedistributedelectronicallytotheCollectiveDepositoryatKSEIbynolaterthan2(two)businessdaysaftertheallotment.PreemptiveRightsShareCertificatesfromtheexercisedPreemptiveRightsshallbeavailableforcollectiononeveryBusinessDay(Monday - Friday, 9.00 - 15.00 Western Indonesian Time), starting from October 14, 2016. Whereas the Collective ShareCertificatesfromshareallotmentshallbeavailableforcollectionstartingfromOctober25,2016.CollectionmaybeconductedintheSAB'sofficebypresenting/submittingthefollowingdocuments:
a. PhotocopyofvalidResidentCard(KTP)/Passport/TemporaryStayPermitCard(KITAS)(forindividual);orb. Photocopy of Articles of Association (for Institution/Legal Entity) and supported by valid Board of
Directors/Managementcomposition;c. Theoriginalcopyofpowerofattorney(forinstitutions/legalentityorindividualswithrepresentative)withRp6,000(six
thousand Rupiah) supplemented with photocopies of Resident Card (KTP)/Passport/Temporary Stay Permit Card(KITAS)ofthePrincipalandAgent.
d. TheoriginalReceiptofShareSubscription.11. AllocationofRemainingSharesUnsubscribedbytheHoldersofPreemptiveRights
IntheeventthatthesharesofferedinthisRightsIssueIarenotentirelysubscribedbytheholdersofPreemptiveRights,theremainingsharesshallbeallocatedtootherholdersofPreemptiveRightswhosesubscriptionsexceedtheirrespectiverightsasstatedinthePreemptiveRights,inproportiontotheamountoftheirrespectiveexercisedPreemptiveRights.
DESCRIPTION OF PREEMPTIVE RIGHTS Shares offered in this Rights Issue I shall be issued based on the Preemptive Rights issued by the Company to the eligibleshareholders. Preemptive Rights are tradable during the trading period by transferring the ownership of Preemptive Rightsthroughbook-entrysettlementofPreemptiveRightsbetweenSecuritiesAccountatKSEI.Holders of Preemptive Rights intending to trade shall open the Securities Accounts at theMembers of Stock Exchange orCustodianBankswhichhavebeenregisteredasAccountHoldersinKSEI.SeveralimportanttermswhichshallbeconsideredwithrespecttothisPreemptiveRightsareasfollows:1. PartiesEntitledtoPreemptiveRightsCertificateShareholdersentitledtoacquirePreemptiveRightsshallbetheShareholderswhosenamesareregisteredintheCompany'sSRonOctober10,2016at16.00WesternIndonesianTime.2. LegitimatePreemptiveRightsCertificateHoldersLegitimatePreemptiveRightsCertificateHoldersare:
a. TheCompany'sshareholderswhosenamearelegitimatelyregisteredintheCompany'sSRasofOctober10,2016,upto16.00WesternIndonesianTime,whosePreemptiveRightsarenotsolduntiltheendofthePreemptiveRightstradingperiod.
b. Thebuyers of PreemptiveRightswhosenames are statedon thePreemptiveRights Certificateuntil th endof thePreemptiveRightstradingperiod.
c. TheholdersofPreemptiveRightsadministeredintheCollectiveDepositoryatKSEIupthelastdateofthePreemptiveRightstradingperiod.
3. TradingofPreemptiveRightsCertificateHoldersofPreemptiveRightsmaytradetheirPreemptiveRightsCertificateduringthetradingperiod,whichshallcommencefromOctober12,2016,uptoOctober18,2016.TradingofscriplessPreemptiveRightsshalldulyconsidertheprovisionsoftheprevailinglawsandregulationsinthejurisdictionsoftheUnifiedStateoftheRepublicofIndonesia,includingbutnotlimitedto,taxregulationsandtheregulationsintheCapitalMarket,includingtheregulationsofstockexchangewheresuchPreemptiveRightsaretraded,namelyPTBursaEfekIndonesiaandtheregulationsofPTKustodianSentralEfekIndonesia(KSEI).IntheeventthattheholdersofPreemptiveRightsareindoubtsastowhatdecisionshouldbetaken,youareadvisedtoconsult investmentconsultants,stockbrokers, investmentmanagers,legalcounsels,publicaccountantorotherprofessionalconsultants,atyourowncost,PreemptiveRightsadministeredintheCollectiveDepositoryatKSEIshallbetradedontheIndonesianStockExchange,whereasPreemptiveRightsintheformofPreemptiveRightsCertificatemaybetradedsolelyoutsideofthestockexchange.Settlement of Preemptive Rights trading on the Stock Exchanges shall bemade by way of book-entry settlement betweensecuritiesaccountsunderthenameofCustodianBanksorMembersofStockExchangeatKSEI.AllcostsandtaxesthatmayarisefromthetradingandtransferofPreemptiveRightsshallbetheresponsibilityandcostoftheholdersofPreemptiveRightsorprospectiveholdersofPreemptiveRights.
4. FormsofPreemptiveRightCertificatesFortheCompany'sshareholderswhosesharesarenotadministeredintheCollectiveDepositoryatKSEI,theCompanyshallissuePreemptiveRightsCertificateswhichshallstatethenameandaddressofthePreemptiveRightsholders,numberofsharesowned,thenumberofPreemptiveRightsthatmaybeexercisedtopurchasePreemptiveRightsShares,thenumberofPreemptiveRightsShares tobepurchased, the sum tobepaid, the amountof additional PreemptiveRights Share subscriptions, endorsementcolumnandotherrequiredinformation.ForshareholderswhosesharesareadministeredintheCollectiveDepositoryatKSEI,theCompanyshallnotissuePreemptiveRightsCertificate,butshallcreditthePreemptiveRightstothesecuritiesaccountsunderthenameoftheCustodianBanksorSecuritiesCompaniesappointedbyeachshareholderatKSEI.5. RequestforPreemptiveRightCertificateSplitHolders of Preemptive Rights Certificate intending to sell or transfer a portion of their Preemptive Rightsmay contact theCompany’sSABtoobtainthedesireddenominationofPreemptiveRights.HoldersofPreemptiveRightssplit thePreemptiveRightsCertificatefromOctober12,2016,untilOctober18,2016.
EachsplitshallbesubjecttoachargeofRp[●]([●]Rupiah)pereachnewPreemptiveRightCertificateasaresultofsuchsplit.SuchchargeisinclusiveofValueAddedTax.ThePreemptiveRightCertificateresultingfromsuchsplitshallbeavailableforcollectionwithin1(one)ExchangeDayafterthecompleterequestisacceptedbytheCompany'sSAB.6. ValueofPreemptiveRightsThevalueofPreemptiveRightsofferedbythelegitimateholdersofPreemptiveRightsshallvaryfromoneanother,basedontheexistingdemandandsupplyinthemarket.Forexample, thecalculationofPreemptiveRightsvaluepresentedbelow isoneof themethods tocalculate thePreemptiveRightsvalue,butsuchcalculationshallnotguaranteethattheresultofPreemptiveRightsvalueshallreflecttheactualvalueofthePreemptiveRights.ThefollowingelucidationisexpectedtoprovideageneraloverviewoncalculatingPreemptiveRightsvalue:
- TheshareclosingpriceonthelastexchangedaypriortothetradingofPreemptiveRights =Rpa
- ExercisePricesofRightsIssue =Rpb- OutstandingSharesPriortoRightsIssueI =A- SharesIssuedinRightsIssueI =B- TheoreticalPriceofthePreemptiveRightShare =(RpaxA)+(RpbxB)
(A+B)=Rpc
Therefore,theoreticallythepriceofPreemptiveRightspershareis =Rpa-Rpc7. UseofPreemptiveRightCertificateThePreemptiveRightCertificateisanevidenceoftherightsgrantedbytheCompanytotheHoldersofPreemptiveRightstopurchasePreemptiveRightShares.ThePreemptiveRightCertificatesareissuedsolelyfortheeligibleShareholderswhohavenotconverttheirsharesandtobeusedtosubscribePreemptiveRightShares.PhotocopiesofPreemptiveRightCertificatesarenotvalid.PreemptiveRightCertificatescannotbeexchangedwithcashoranyotherformsbytheCompany.EvidenceofownershipofPreemptiveRightsforholdersofPreemptiveRightsadministeredintheCollectiveDepositoryatKSEIshallbedeliveredbyKSEIthroughtheirrespectiveMembersoftheStockExchangeorCustodianBanks.
8. FractionofPreemptiveRightsPursuanttothePOJKNo.32/2015,intheeventthatshareholdersownPreemptiveRightsintheformofafraction,therightsoversuchfractionofsecuritiesmustbesoldbytheCompany,andtheproceedsofsuchsalesshallbedepositedtotheCompany'saccount.9. OthersAllcostsincurredinrelationtothetransferofPreemptiveRightsshallbebornebytheHoldersofPreemptiveRightsCertificateorprospectiveholdersofthePreemptiveRights.
DISTRIBUTION OF PROSPECTUS AND PREEMPTIVE RIGHT CERTIFICATES (PRC)
TheCompanyhasannouncedkeyinformationwithregardtothisRightsIssueIthroughadvertisementinthenewspapers.1. ForShareholderswhosesharesareadministeredintheCollectiveDepositorysystematKSEI,thePreemptiveRightsshallbe
distributedelectronicallytotheSecuritiesAccountsoftheirrespectiveMembersoftheStockExchangeorCustodianBanksatKSEIbynolaterthan1(one)BusinessDayaftertheregistrationdateintheSRforRightsIssueI,whichshallbeOctober11,2016.TheProspectusandadditionalSSFareavailableattheCompany'sSAB.
2. ForShareholderswhosesharesarenotadministeredintheCollectiveDepositorysystematKSEI,theCompanyshallissuePreemptiveRightCertificatesunderthenameoftheshareholders,andsuchshareholdersmayobtainthePreemptiveRightCertificates,Prospectus,AdditionalSSFsandotherformsstartingOctober11,2016,bypresentingtheoriginalcopyofvalididentification(ResidentCard(KTP)/Passport/TemporaryStayPermitCard(KITAS))andsubmitthephotocopiesthereofandtheoriginalPowerofAttorneyforthoseunabletoobtainthedocumentsreferredbythemselvestotheCompany'sSAB:
PTDatindoEntrycom
WismaSudirman-PuriDatindo
Jl.JenderalSudirman,Kav.34,JakartaPhone.021-5709009Fax.021-5709026
IntheeventthattheCompany'sshareholderswhosenamesareregisteredintheShareholderRegisteronOctober10,2016,at16.00Western Indonesian Timehavenot obtained theProspectus andPreemptiveRight Certificates anddonot contact PTDatindoEntrycomastheCompany'sSAB,thenallrisksoflossesshallnotbetheresponsibilityofPTDatindoEntrycomortheCompany,butshallremainastheresponsibilityoftheconcernedshareholder.
SUPPLEMENTARY INFORMATION IntheeventofanyuncertaintiesconcerningthisProspectusorintheeventthattheshareholdersrequireadditionalinformationconcerningthisRightsIssueI,theshareholdersmaycontact:
CorporateSecretaryandInvestorRelation
PTWijayaKarya(Persero)Tbk
HeadOfficeJl.D.I.PanjaitanKav.9
Jakarta,13340,IndonesiaPhone:(021)819-2808Fax:(021)819-1235
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