Restructuring of State Construction Enterprises Accelerated, Key Focus Areas
The State-Owned Enterprises Regulatory Body (BP BUMN) and Danantara Indonesia are driving the acceleration of restructuring for construction SOEs. Corporate Secretary of PT PP (Persero), Joko Raharjo, stated the company’s commitment to supporting and implementing directives to speed up restructuring steps, aiming to boost competitiveness and strengthen contributions to the national economy.
“PT PP’s management views the restructuring initiatives led by BP BUMN and Danantara as crucial efforts to fortify the national construction industry’s foundation, making it healthier, more transparent, accountable, and strongly competitive amid industry dynamics,” Joko said in a written statement in Jakarta on Friday (17/4/2026).
As part of the construction SOEs, Joko affirmed that PT PP is prepared to implement various strategic directives, including improving the quality of more realistic and credible financial reports, enhancing regulatory compliance, and strengthening transparency principles across all operational lines. Joko added that PT PP is also continuously promoting good corporate governance and sustainable financial performance improvements.
Joko assessed that these steps align with the restructuring directives aimed at building stronger company fundamentals, increasing stakeholder trust, and enhancing corporate competitiveness. PT PP, Joko continued, fully supports the transformation initiatives led by BP BUMN and Danantara.
“The company is committed to executing these directives in a disciplined and consistent manner, both in financial, governance, and operational aspects, to realise a healthier, more credible, and competitive company,” Joko added.
With directed and measured restructuring implementation, Joko is optimistic that PT PP can strengthen its position as one of Indonesia’s leading construction companies. PT PP, Joko continued, is determined to increase competitiveness in facing industry opportunities and challenges, while actively contributing to sustainable national infrastructure development.
“Going forward, PT PP will continue to coordinate with BP BUMN and Danantara in overseeing this transformation process to ensure it runs optimally and delivers tangible impacts on company performance, the national economy, and public welfare,” Joko said.
Director of Economics at the Center of Economic and Law Studies (CELIOS), Nailul Huda, assessed that construction SOEs face heavy pressure due to their significant role in infrastructure development during the Joko Widodo (Jokowi) administration. Huda noted that these assignments were not matched with smooth payments, impacting the companies’ financial conditions.
“Clearly, construction SOEs during the Jokowi era became the spearhead of the economy with a very heavy burden,” Huda said when contacted by Republika in Jakarta on Friday (17/4/2026).
According to Huda, the issues have become more complex due to assignments outside core competencies and payment delays from executed projects. He assessed that this condition then pressures cash flow, affecting the companies’ ability to meet obligations to vendors.
“Construction SOEs are asked to build infrastructure, but government payments are delayed. There are also construction SOEs asked to manage toll roads, which is not their field, as a reason for payment delays,” Huda stated.
Huda emphasised that fundamental improvements must focus on strengthening cash flow to restore healthy company operations. Additionally, he reminded that the restructuring process should consider the real financial conditions of construction SOEs comprehensively.
“As a result, from a cash flow perspective, there is a problem. They also cannot pay construction vendors. Therefore, what must be fixed is the company’s cash flow. Danantara must also examine the financial side of construction SOEs before restructuring,” Huda said.