Danantara Chief Reveals Latest on State-Owned Construction Firm Merger
Jakarta, CNBC Indonesia — The Daya Anagata Nusantara Investment Management Agency (BPI Danantara) has confirmed that the merger of state-owned enterprises (SOEs) in the construction sector will be completed this year. It is reported that two publicly listed companies, PT Adhi Karya (Persero) Tbk. (ADHI) and PT PP (Persero) Tbk. (PTPP), will be merged.
Chief Operating Officer of BPI Danantara Dony Oskaria revealed that the merger process for the construction SOEs is still under review. This means the plan for grouping the companies to be merged is still subject to change.
“Oh, it has not been determined yet (the merger between PTPP and ADHI) either. We will see later, and it is also not certain whether it will be ADHI and PP and so forth,” he said when met at the DPR RI building in Jakarta on Monday (31/8/2026).
Dony, who also serves as Head of BP BUMN, stressed that the most important aspect of this consolidation action is to rehabilitate the state-owned companies.
“So we will see; the important thing is that there will be consolidation of our construction companies in the context of a rescue and rehabilitation process,” he said.
Previously, President Director of PTPP Novel Arsyad revealed that the company had made a number of preparations regarding the planned merger of construction SOEs. For this effort, he acknowledged that PTPP had communicated intensively with Adhi Karya.
“Before carrying out the integration of construction SOEs or the merger to be conducted by Danantara, what is certainly desired is how we ensure full transparency and a more detailed evaluation before the merger is carried out,” Novel said during the 2025 financial year earnings call on Tuesday (7/4/2026).
Novel detailed that this step is a mandate from Danantara for construction SOEs to return to their core business, namely construction. Other businesses must be resolved promptly, whether through investment changes or other business measures.
“So that it truly returns purely to the core business with a sufficiently lean organisation. Then, as we move in that direction, we must accelerate our strategy by making one-off adjustments, which are reflected in our financial statements,” Novel explained.
In addition, PTPP also carried out significant asset impairment in its 2025 financial statements as a form of transparency regarding its fundamental condition.
Meanwhile, PTPP Finance Director Agus Purbianto added that this book value adjustment is a critical phase that must be passed before restructuring and consolidation are carried out.
With the presentation of fair asset values, it is hoped that the merger process will not leave hidden burdens for the new entity later.
“After the books reflect fair value, the next stage is restructuring. Of course, after the restructuring is complete, we will be merged. This is part of the initial stages,” Agus said on the same occasion.
The synchronisation measures are also accompanied by an organisational streamlining strategy and the divestment of non-core assets, or asset recycling.
For information, in addition to impairment of certain assets in subsidiary entities, PTPP also established an allowance for impairment losses on receivables and adjusted inventory values, as part of strengthening asset quality and implementing more prudent risk management.
These measures are part of applying the precautionary principle, strengthening corporate governance, and adjusting to industry dynamics. This does not reflect any problems in the company’s operational management.
The policy has put pressure on the company’s consolidated financial performance for the 2025 reporting period. Nevertheless, management emphasised that this step is part of the company’s strategy to strengthen its financial fundamentals in the long term.
This is also part of the overall process of restructuring and strengthening the company’s financial structure to ensure business sustainability and improve performance quality in the future.