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Govt to conclude Waskita, Hutama Karya consolidation in September
The ministry has previously considered putting debt-laden Waskita Karya under Hutama Karya, which it deems to be in much better financial condition.
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A worker prepares to operate a tower crane at the Soekarno-Hatta International Airport integrated building construction project in Tangerang, Banten, on July 29, 2020. (JP/Dhoni Setiawan)
T
he planned consolidation of two state-owned construction firms Waskita Karya and Hutama Karya is set to be completed this September, a State-Owned Enterprises (SOEs) Ministry official stated on Tuesday.
The ministry has previously considered putting debt-laden Waskita Karya under Hutama Karya, which it deems to be in much better financial condition.
“We don’t want construction SOEs competing with each other for the same projects, as Hutama Karya, Waskita and others have their own specializations. Thus, they do not need to battle each other and make significant discounts [to win tenders],” Arya Sinulingga, an expert staff member to the SOEs minister, said as quoted by Antara.
Hutama Karya’s vice president director Aloysius Kiik Ro expressed his readiness to follow the ministry’s direction and join hands with Waskita Karya.
In March, the SOEs Ministry announced plans to reduce the number of infrastructures SOEs to three from the current seven, hoping each could focus on its respective core tasks and expertise.
For instance, Hutama Karya with Waskita Karya as its subsidiary, would focus on toll road projects, institutional building and commercial residential.
Another construction SOE PT Pembangunan Perumahan (PTPP), which would take another debt-laden construction SOE Wijaya Karya as its subsidiary, would concentrate on airport and seaport projects.
