Adhi Karya Faces Challenges as Jakarta Plans Monorel Demolition

Background of the Monorel Dispute

PT Adhi Karya Tbk (ADHI), a major Indonesian construction company, is facing potential challenges following the Jakarta government's plan to demolish monorel pillars in January 2026. The demolition plan affects ADHI's assets along Jalan HR Rasuna Said, which the company claims ownership of based on court rulings in 2012 and 2017.

Legal and Financial Implications

The situation remains complex due to ongoing legal disputes and asset ownership claims. According to Rozi Sparta, Corporate Secretary of ADHI, the company is still in discussions with the Jakarta government regarding the demolition plan. The legal basis for ADHI's claim includes a court decision dated 22 October 2012 and a legal opinion from the State Attorney's Office dated 16 August 2017.

Impact on Adhi Karya's Performance

The planned demolition could potentially affect ADHI's financial performance in early 2026. The company's stock may face pressure as investors assess the potential impact of the asset demolition on ADHI's overall business operations and financial health. The outcome of the ongoing discussions between ADHI and the Jakarta government will be critical in determining the future implications for the company.