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View all search resultsConstruction SOE merger to be concluded by December, govt says
The plan to merge state-owned enterprises (SOEs) in the construction sector was first proposed in 2023 with the aim to strengthen the building companies’ stretched finances.
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The Samarinda-Balikpapan toll road, pictured on Sept. 3, 2024, cuts through a vast stretch of forest in Palaran, Samarinda, East Kalimantan. (Antara/M. Risyal Hidayat)
T
he State-owned Enterprises (SOEs) Regulatory Agency (BP BUMN) has announced its intention to conclude a long-planned merger of construction sector SOEs next month.
“We are currently assessing the merger of the construction SOEs cluster, but hopefully it can be completed in December,” Deputy BP BUMN Head Aminuddin told reporters on the sidelines of Antara Business Forum event on Wednesday.
He noted that establishing, liquidating or merging state owned firms, as well as forming holding companies, fell within BP BUMN’s area of responsibility, which differentiated the agency’s tasks from those of state asset fund Danantara’s role of managing SOEs' assets and dividends.
Speaking at the same event, Danantara chief investment officer Pandu Sjahrir said the institution would focus primarily on improving SOEs' performance by leading them toward a more “results-oriented” approach with “less politics”.
Read also: Govt faces hurdles in bridging infrastructure funding gap
“Our task is to fix [state-owned] firms that suffer losses through consolidation. We will consolidate companies that run businesses in the same category [...]; our asset management [entity] will become the largest in Indonesia that can compete at the regional level,” he said.
The plan to merge construction SOEs was first proposed in 2023 with the aim to strengthen the finances of the state builders, some of which are heavily leveraged.
