Consolidation of Construction SOEs: PT PP Prepares Merger Framework with Adhi Karya

Jakarta - The President Director of PT PP (Persero) Tbk (PTPP), Novel Arsyad, stated that the company is continuing preparations for the merger process of construction SOEs. PT PP is currently engaging in intensive communication with PT Adhi Karya (Persero) Tbk (ADHI) to compile the merger framework. He explained that this coordination is part of the technical preparations before Danantara Indonesia consolidates the seven construction SOEs into three clusters. “Up to now, we are preparing together with Adhi Karya in outlining the process towards the merger,” Novel said during the 2025 fiscal year Earnings Call held online on Tuesday (7/4/2026). He elaborated that preparations for the merger of construction SOEs have been underway since last year. However, Danantara requested a comprehensive evaluation first to reflect the real conditions of each company. “This is because we were asked to conduct an evaluation, so currently the focus is on each company’s books,” he added. The seven construction SOEs to be consolidated, besides PT PP and Adhi Karya, are PT Wijaya Karya (Persero) Tbk (WIKA), PT Hutama Karya (Persero), PT Waskita Karya (Persero) Tbk (WSKT), PT Brantas Abipraya (Persero), and PT Nindya Karya (Persero). Danantara plans to divide these seven SOEs into three core business areas with specialisations in buildings, infrastructure, and engineering procurement and construction (EPC). The process towards the merger of construction SOEs is accompanied by improvements in the companies’ financial performance. According to Arsyad, PT PP has now completed a comprehensive evaluation of the company’s condition and is proceeding to the restructuring process. This restructuring step is deemed important to make the company’s condition healthier, so that the merger with other construction SOEs can run optimally. “Whether this merger will be carried out before or after this restructuring, of course, we will refer back to Danantara,” he said. “From our perspective, it should lean more towards restructuring first with the company’s condition truly healthy, so that the merger can then be carried out. However, we still defer to Danantara on how far it will go,” Novel added. According to him, before entering the merger stage, Danantara conducts recovery first. The improvement process has started since last year with cleaning and correcting the books, including recording asset impairment. After that, the company undergoes business and financial restructuring, including reducing debt burdens, until its condition returns to health. After the restructuring stage, the company will then enter the business consolidation phase through a merger scheme. “So it’s most likely that we will carry it out in the second semester,” said Danantara’s Chief Operating Officer (COO) Dony Oskaria when met at the DPR RI Building, Jakarta, on Thursday (5/2/2026).