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Adhi Karya seeks Rp 2t back pay from govt for Jabodebek LRT
Adhi Karya has asked the government to resolve almost $130 million in outstanding payments for the Greater Jakarta LRT project so it can meet its its obligations to vendors, an issue that has only been compounded by last month's sweeping budget cuts.
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Passengers watch as a Greater Jakarta light rail transit (Jabodebek LRT) train arrives on Dec. 21, 2023, at Dukuh Atas Station in Setiabudi, South Jakarta. (Antara/Rifqi Raihan Firdaus)
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tate-owned construction firm PT Adhi Karya is still waiting to be paid Rp 2.1 trillion (US$129 million) by the Transportation Ministry for its work developing the Greater Jakarta light rapid transit (Jabodebek LRT) system, which began commercial operations in August 2023.
The company said the outstanding payment was significant enough to impact the future sustainability of its working capital.
“We have met with both the Transportation Ministry and the Finance Ministry to seek a resolution to this issue,” Adhi Karya CEO Entus Asnawi Mukhson said on Wednesday, during a meeting with House of Representatives Commission VI overseeing state-owned enterprises (SOEs).
Compared to other state-owned construction companies, Adhi Karya has maintained stronger financial health, ending last year with a debt-to-equity ratio (DER) of 2.62.
In contrast, Waskita Karya and Wijaya Karya recorded significantly higher DERs of respectively 8.1 and 6.2, reflecting a greater dependence on debt and thus, a higher financial risk.
This situation has stemmed from the aggressive infrastructure push under the previous administration of Joko “Jokowi” Widodo, which required construction SOEs to finance projects upfront through debt, with limited state support.
Read also: Construction SOEs face steeper climb to recovery amid budget cuts
