CORRECTED-Indonesia's Wijaya Karya sees 22 percent profit growth this year

Thu Jan 9, 2014 3:40am EST

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(Corrects asphalt production to 290 billion rupiah in 4th paragraph)

JAKARTA Jan 9 (Reuters) - State-controlled construction company PT Wijaya Karya is aiming for a 22 percent rise in profit growth this year to 678.6 billion rupiah ($55.46 million) compared to 555 billion rupiah last year, a company director told reporters on Thursday.

Finance director Adji Firmantoro said the company is also targeting a sales increase of 22.8 percent to 18.93 trillion rupiah this year and plans to spin off its concrete unit, Wika Beton.

Wika Beton contributes 40 percent to Wijaya Karya's profit, but Firmantoro said the IPO would not affect on its parent company's profitability.

Wijaya Karya will start to produce premium-grade asphalt through its subsidiary, Sarana Karya. Asphalt production is targeted at 50,000 tonnes per year for next three years with an investment of 290 billion rupiah and most production is to be exported to China.

The construction firm's shares rose as much as 1.52 percent to 1,670 rupiah. The broader Jakarta Composite Index was up 0.29 percent, while the blue-chip index rose 0.39 percent.

($1 = 12,235 rupiah)

(Reporting by Fahiyah Dahrul; Editing by Matt Driskill)

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