State-Owned Construction Firms Urgently Need Restructuring, Government Demands Total Overhaul

The government is accelerating steps to restructure state-owned construction companies to improve company performance and governance. This transformation is deemed crucial for maintaining the health of the national construction sector amid economic pressures.

Head of the State-Owned Enterprises Regulatory Agency, Dony Oskaria, stated that accelerating restructuring is the main focus alongside Danantara. “This meeting is part of efforts to strengthen the restructuring steps for state-owned construction companies to make them healthier, more transparent, and accountable,” said Dony in a written statement on Thursday (16/4/2026).

Dony emphasised the importance of improving more realistic and credible financial reports. In addition, compliance with regulations and strengthening transparency also form the main foundation in the transformation being carried out.

“The SOE Regulatory Agency together with Danantara continues to push for strengthening governance and improving financial performance as part of sustainable restructuring,” said Dony.

This step aims to strengthen the company’s foundation while increasing stakeholder confidence. The transformation not only targets financial aspects but also improvements in governance and operational discipline.

“Through this step, state-owned construction companies are expected to become healthier, more credible, and have strong competitiveness,” said Dony.

The government considers state-owned construction companies to have a strategic role in national infrastructure development. Therefore, restructuring is carried out in a directed manner to support development projects sustainably.

In the future, the SOE Regulatory Agency together with Danantara will continue to oversee this transformation process. “This effort is expected not only to improve company performance but also to have a real impact on the economy and public welfare,” said Dony.