State-Owned Construction Companies Merger Delayed from June 2026 Target, Danantara Boss Explains Reasons

JAKARTA, KOMPAS.com - The consolidation of seven State-Owned Enterprises (BUMN) in the construction sector is estimated to be delayed from the initial target set for completion in June 2026. These BUMN 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). The Head of the State-Owned Enterprises Regulatory Agency (BP BUMN) and Chief Operating Officer (COO) of Danantara Indonesia, Dony Oskaria, stated that the restructuring process for BUMN Karya is highly complex, thus requiring a longer timeframe. According to him, one of the main challenges in the consolidation process is the significant debt held by BUMN Karya. Therefore, Danantara plans to divest several assets and business lines that are not directly related to the core construction business. Dony said that several BUMN Karya possess assets outside their primary sector, such as fibre optic businesses, drinking water supply systems (SPAM), and toll roads. “So, several non-related items to their business as construction companies will be divested. For example, if a construction company has fibre optics, SPAM, toll roads, and so on. These will be divested first,” he explained. He noted that the process of divesting these assets and businesses also takes time because it must go through valuation by the Public Appraisal Services Office (KJPP). In addition, the government must conduct the asset divestment carefully to avoid harming the companies or the state. “We must not also carry out divestments that are not beneficial. We certainly have to ensure that what we divest also provides benefits and profits, especially in reducing the obligations (debt) of these construction companies,” Dony stated. Although the completion target is delayed from June 2026, he assured that the BUMN Karya consolidation remains targeted for completion this year. “We might still hope, but most likely it will be postponed, because after looking at the timeline, it will definitely be completed this year,” Dony concluded.