Consolidation of Seven State-Owned Logistics Firms Draws Scrutiny

A total of seven State-Owned Enterprises (BUMN) in the logistics sector have officially merged into a single entity through the signing of a Shareholder Agreement (SHA) and a Consolidation Merger Deed. The seven logistics companies are Pelindo Sinergi Lokaseva Multiterminal Indonesia, Pelindo Sinergi Lokaseva Prima Indonesia Logistik, Pos Logistics, Pelni Logistics, PT Kawasan Berikat Nusantara (KBN), PT Varia Usaha Dharma Segara (VUDS), and Krakatau Integrated Logistics. Executive Director of The National Maritime Institute (Namarin) Siswanto Rusdi assessed that the merger of these state-owned logistics firms has not yet addressed the existing problems. “The companies being consolidated are medium-sized entities. If they are later merged into PT Pos Indonesia in the second phase, the holding company’s share of the national logistics business will still grow larger,” Siswanto said in Jakarta on Thursday (2/7). He added that logistics companies which are subsidiaries or sub-subsidiaries of Pertamina and PLN have not been included in the consolidation. Siswanto stressed that the logistics firms within these two BUMN hold a significant market share. “State-owned companies with massive logistics activities, such as Pertamina and PLN, also have logistics business arms that, to a certain degree, are not being consolidated,” he concluded. Previously, the Chairman of the Steering Committee for the BUMN Logistics Consolidation PMO, Daud Joseph, stated that PT Multi Terminal Indonesia would serve as the surviving entity to house the seven companies during the transition period. “So it is called a surviving entity, or one entity that survives. The surviving entity will be PT Multiterminal Indonesia,” Daud said. During this transition period, the merged companies will undergo an integration process covering operations, legal, finance, and governance before entering the final transaction stage. Daud further explained that the merger of the seven BUMN logistics companies is the initial step in the national logistics consolidation by Danantara Asset Management to build a more efficient and integrated logistics ecosystem in Indonesia.