Employee Training as Human Capital Development at Pt. Wijaya Karya

Employee Training as Human Capital Development at PT. Wijaya Karya

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By:

Ashanti Hastuti

M.S. Pebruwidodo

Andi Tenri Harahap

Rebecca Agiestha

This paper is made for Final Exam

Strategic Human Capital & Change Management

MM Executive Batch 28

Bina Nusantara University

CHAPTER I

Background

1. Background statement

This paper will cover the analysis of an established public company in Indonesia. Our group appointed PT. Wijaya Karya, Tbk. as the object of the assessment. PT. Wijaya Karya, Tbk. (WIKA) is an Indonesian company that is involved in engineering and construction work in both Indonesia as well as abroad. Its businesses include civil engineering, building construction, and construction of industrial plants as well as energy facilities. The company is majority-owned by the Indonesian government.

As explain later, we will be identifying on how WIKA manage the people development inside the company. Our group will focus more on employee training as the part of talent development. Thus, identifying the impact in growth and excellence for the better business entity and performance.

1. Objective

The objective of this paper is to assess the strategic human capital and management through interpreting the company talent development which is particularly by analysing the training system within the organization.

1. Selection of an Organization: PT. Wijaya Karya, Tbk. (WIKA)

III.1. Company Profile

WIKA was formed by the nationalization process of a Dutch company named, Naamloze Vennotschap Technische Handel Maatschappij en Bouwbedijf Vis en Co. or also known NV Vis en Co. Pursuant to government regulation No. 2/1960 and Minister of Public Works and Electric Power (PUTL) Decree No. 5 dated 11 March 1960, to be named Perusahaan Negara Bangunan Widjaja Karja. WIKA’s line of business at the time was electrical and water pipe installation works. In the early 1960s, WIKA took part in the construction project of Gelanggang Olah Raga Bung Karno in order of Games of the New Emerging Forces (GANEFO) and the 4th Asian Games providence in Jakarta.

Various improvements were made in overtime to keep growing, as well as WIKA dedication to contribute the development of our nation by providing construction services throughout the country.

The first significant growth was in 1972, when Perusahaan Negara Widjaja Karja was changed to PT Wijaya Karya. WIKA then expanded into a construction contractor by handling various important projects, such as installation of electricity grids at Asahan and the Jatiluhur irrigation project.

A decade later, in 1982, WIKA start the expansion with establish of several new divisions, such as building, construction civil division, concrete and metal products division, commerce civision, energy, housing facilities division, and industrial construction division. Many projects being handled at the time, among others the LIPI Building, Bukopin Building, and construction and Irrigation Project. Moreover, with the progressive growth of its subsidiaries in the construction industrial sector, WIKA has transformed into an integrated and synergetic infrastructure company.

Wijaya Karya has two core businesses: Construction, which is divided into Civil Construction (roads, bridges, seaports, airports and dams) and Building Construction (residential and commercial housing as well as utility buildings) and Mechanical Electrical, which consists of Energy and Industrial Plants. The Energy segment is focused on Engineering, Procurement and Construction (EPC) and Investment.

WIKA’s personnel expertise in construction industry have pushed the company to further explore in various business areas by establishing a number of its subsidiaries to become independent as business ventures that specializes in creating their own respective products. In 1997, WIKA establish its first subsidiary company, named PT Wijaya Karya Beton, a reflection of how fast the Concrete Division growing in WIKA at the time.

PT Wijaya Karya Beton's activity at the time, among others, is the rail tracks provision for the Manggarai double-track lane construction in Jakarta, Grati Gas and Steam Power Station (PLTGU) construction and also Barelang cable-stayed bridge in Batam. The establishment of PT Wijaya Karya Realty in the year 2000 as expansion of the Realty Division was follows PT Wijaya Karya Beton steps. Subsequently at the same year, PT Wijaya Karya Intrade was also established as the expansion of the Industrial and Commercial Division.

The more a company expanded, the higher level of public trust to the company’s capablility. These reflect on WIKA’s achievement on committing to Initial Public Offering (IPO) on October 27th, 2007 in Indonesia Stock Exchange (IDX). In that occasion, WIKA release 28,64 percent shares to the public, thereby Indonesian Government hold 68,42 percent shares, and the rest is owned by the public includes WIKA employees through Employee/Management Stock Option Program (E/MSOP), and Employee Stock Allocation (ESA).

In the mean time, expansions of division action to be independent subsidiaries are continuing. WIKA established PT Wijaya Karya Gedung on 2008 as subsidiaries that specialize on high-rise building development business. WIKA also acquired 70,08 percent of PT Catur Insani Pertiwi shares that specialized on mechanical-electrical business, afterward PT Catur Insani Pertiwi’s company name was changed to PT Wijaya Karya Insan Pertiwi. Along with PT Jasa Sarana and RMI established PT Wijaya Karya Jabar Power that specialized on Geothermal Power Plant development.

WIKA along with other companies are successfully completed Suramadu Bridge in mid 2009, a prestigious project which connect Java Island and Madura Island. At the present, many people are experience the benefit of the project.

Entering 2010, WIKA face business environment transformation with a grater challenge. For that, WIKA has setting up the brand new Company’s Vision, which is 2020 VISION to be one of the EPC. Company and the best Integrated Investment in Southeast Asia. This vision was believed to give directions to all WIKA’s ranks to achieve optimal, healthy and sustainability growth.