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Ministry merges seven construction SOEs as consolidation continues
The State-owned Enterprises (SOE) Ministry hopes consolidating seven construction firms into three will put them on a firmer financial footing and make their operations more efficient.
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State-Owned Enterprises (SOEs) Minister Erick Thohir (second left) presents an award to PT Permodalan Nasional Madani (PNM) CEO Arief Mulyadi (third left) during the State-Owned Enterprises 2024 Corporate Communication and Sustainability Summit (BCOMSS) in Jakarta in March 2024.
The government has announced plans to merge seven state-owned infrastructure enterprises into three entities.
The companies are PT Hutama Karya, PT Waskita, PT PP, PT Wijaya Karya, PT Brantas Abipraya, PT Adhi Karya and PT Nindya Karya.
State-owned Enterprises (SOEs) Minister Erick Thohir said on Tuesday that the merger of the seven companies was aimed at improving the governance of state-owned construction firms.
The ministry has categorized the companies based on their core tasks. Brantas Abipraya, Adhi Karya and Nindya Karya would merge and focus on water infrastructure as well as railway construction, Erick said, as reported by news agency Antara.
Furthermore, the minister said Hutama Karya and Waskita would focus on highway projects, institutional buildings and commercial residential development.
Read also: Govt should expect less from debt-laden SOEs: Analysts
“This is a form of consolidation effort to revitalize [the companies], and we have begun to classify the state-owned construction companies. We have coordinated with the public works and housing minister and the finance minister to move forward with the plan,” Erick said, as quoted by KataData.
