State-Owned Construction Companies' Merger Targeted for Completion by End of This Year

PT Hutama Karya (Persero) has revealed updates on the merger process of BUMN Karya state-owned enterprises. Acting Executive Vice President and Corporate Secretary of Hutama Karya, Hamdani, stated that the transition to the BUMN Karya holding is targeted for completion by the end of this year.

Hamdani explained that the merger process awaits the completion of financial restructuring for the BUMN Karya entities. “In terms of timeline, we can expect this restructuring to be finished around mid-year, so integration will begin from mid-year and is hoped to be completed by year-end,” he said during a media briefing in Jakarta on Thursday, 2 April 2026.

Currently, Hamdani noted, a Project Management Office has been established to support the merger process. Through this PMO, Hutama Karya and the prospective holding entities are synchronising various aspects, from human resources and operations to company systems.

Nevertheless, Hamdani mentioned that some BUMN Karya entities still have poor financial conditions. “Thus, the government’s programme is to first improve these two, restructure them first; once their financial reports or books have improved, they will be integrated with us,” he said.

Head of the State-Owned Enterprises Regulatory Agency, Dony Oskaria, previously stated that the restructuring of BUMN Karya is nearly final. The process will then enter the consolidation phase for the three main cores: construction in building, infrastructure, and engineering procurement and construction (EPC).

Dony explained that restructuring will start with fundamental company improvements, particularly through financial report enhancements. “They (BUMN Karya) are currently undergoing restructuring, which is almost final. We have also made improvements to the gaps in their books. Then, restructuring of their debts. After this, they will enter the consolidation phase,” Dony said in a statement in Jakarta on Tuesday, 17 March 2026.

The BUMN Karya merger plan has been underway since 2024 under Minister of State-Owned Enterprises Erick Thohir. Erick stated that seven BUMN companies will be merged: PT Adhi Karya, PT Wijaya Karya (Persero) Tbk, PT Hutama Karya (Persero), PT PP (Persero) Tbk, PT Waskita Karya (Persero) Tbk, PT Brantas Abipraya (Persero), and PT Nindya Karya (Persero).