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Govt to make Waskita Karya subsidiary of Hutama Karya after restructuring
The government plans to make state-owned construction firm PT Waskita Karya a subsidiary of another state-run company, following a debt restructuring of the company.
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Workers of PT Waskita Sriwijaya, a subsidiary of state-owned construction firm Waskita Karya, pave a section of the trans-Sumatra toll road in Ogan Komering Ilir regency, South Sumatra, on April 3, 2023. (Antara/Nova Wahyudi)
T
he government plans to make state-owned construction firm PT Waskita Karya a subsidiary of another state-run company, following a debt restructuring of the company.
Deputy State-Owned Enterprises (SOEs) Minister Kartika Wirjoatmodjo told reporters on Monday that the government expected to conclude Waskita Karya’s debt-restructuring process early next year.
After the restructuring ends, the government will transfer its share in Waskita Karya to state-owned construction firm Hutama Karya through a private placement, he said. Therefore, Waskita Karya will become a subsidiary of Hutama Karya.
“We hope this can be concluded next year,” Kartika said.
Read also: Govt eyeing limit on state-owned banks’ loans to construction SOEs
Waskita Karya is struggling to pay its debts and expenses. On Aug. 6, Waskita Karya missed debt repayments to its bondholders.
In May, Waskita Karya also failed to make timely coupon payments on its corporate bonds, causing the Indonesia Stock Exchange (IDX) to announce another trading halt on its shares.
