Danantara Prioritises Prudence in Restructuring State-Owned Construction Firms
Chief Operating Officer of Danantara Indonesia and Head of BP BUMN, Dony Oskaria, has affirmed that the government is applying a very high level of prudence in the restructuring process of state-owned construction firms (BUMN Karya). This approach is being taken given the complexity of long-standing and large-scale problems in the state-owned construction sector.
Dony explained that the restructuring process is taking considerable time because the issues are not only at the holding company level but also extend to subsidiaries and sub-subsidiaries. He noted that each BUMN Karya has on average more than 20 subsidiaries, each with its own dynamics and problems.
“The problems are quite extensive. Firstly, the liabilities are large, the debts are substantial. Secondly, the issues are not only at the holding level, but there are also problematic subsidiaries,” Dony said, as reported by Antara on Tuesday (18/8).
According to Dony, the government is avoiding instant measures such as immediately merging or bankrupting companies without careful consideration. This is being done to maintain the stability of the construction industry ecosystem and to minimise negative impacts on stakeholders.
Regarding the completion target, Dony is working towards finishing the restructuring process by the end of 2026. However, he acknowledged that complex legal and operational dynamics, such as problems at LRT City and lawsuits related to WIKA Realty, mean the timeline remains flexible.
Previously, the merger target for BUMN Karya, originally scheduled for June 2026, was shifted to the fourth quarter of 2026. This delay is a consequence of the in-depth audit and internal improvement processes currently underway.
The seven BUMN Karya included in the restructuring and merger plan are PT Hutama Karya (Persero), PT Waskita Karya (Persero) Tbk, PT Wijaya Karya (Persero) Tbk, PT Adhi Karya (Persero) Tbk, PT PP (Persero) Tbk, PT Brantas Abipraya (Persero), and PT Nindya Karya (Persero).