Danantara ensures completion of state-owned construction companies merger by 2026

Jakarta (ANTARA) - Danantara’s Operational Director Dony Oskaria has assured that the merger or consolidation of state-owned construction companies will be completed in 2026, even though it has been pushed back from the original target of June 2026. “It is very likely (that the BUMN Karya merger) will be delayed after I reviewed the timeline. But, it will certainly be finished this year,” Dony stated when met on the sidelines of the Jakarta Globe Insight event in Jakarta on Tuesday. Dony, who is also the Head of the State-Owned Enterprises Executive Agency (BP BUMN), explained that there are several stages that the construction SOEs must go through before entering the merger. The first stage is divesting businesses unrelated to their core operations in the construction sector. For example, some construction SOEs have businesses in fibre optics, SPAM (drinking water supply systems), and toll roads. “We will divest these first, to reduce their debts (the construction SOEs),” Dony said. According to Dony, the divestment process takes time because each business must be analysed individually. “We cannot carry out divestments that are not beneficial. We must ensure that what we divest also provides benefits and profits, particularly in reducing the obligations of the construction SOEs before they are consolidated,” Dony stated. After the divestment, Dony continued, the merger or consolidation will then proceed. The seven construction SOEs to be consolidated include PT Hutama Karya (Persero), PT Waskita (Persero), PT PP (Persero), PT Wijaya Karya (Persero), PT Brantas Abipraya (Persero), PT Adhi Karya (Persero), and PT Nindya Karya (Persero). The State-Owned Enterprises Executive Agency (BP BUMN) and Danantara are targeting a more directed and measured restructuring so that Construction SOEs can become a key pillar in sustainable national infrastructure development. These efforts are expected not only to improve company performance but also to strengthen the contribution of Construction SOEs to the national economy and public welfare.