Adhi Karya Faces Challenges from Jakarta Monorail Demolition Plans

Potential Impact on Early 2026 Performance

PT Adhi Karya Tbk (ADHI) is bracing for potential headwinds in early 2026 as the Jakarta Provincial Government plans to accelerate the demolition of monorail pillars along Jalan HR Rasuna Said in January 2026. The company is currently engaged in further discussions with the Jakarta government regarding this matter.

Legal Status of Monorail Pillars

The monorail pillars are considered assets owned by ADHI based on a court ruling dated 22 October 2012 (Decision No. 296/Pdt.G/2012/PN.JKT.Sel) and a legal opinion from the State Attorney's Office No. B.354/G/Gph.1/08/2017 dated 16 August 2017. This legal status is crucial as it determines the responsibilities and potential liabilities associated with the demolition process.

Ongoing Discussions and Next Steps

ADHI's Corporate Secretary, Rozi Sparta, confirmed the demolition plans and the ongoing discussions between the company and the Jakarta Provincial Government. The exact details of how the demolition will be carried out and who will be responsible for the process are still being negotiated.

Potential Financial and Operational Implications

The demolition plans could have significant implications for ADHI's financial and operational performance in the coming months. The company is working to mitigate any potential negative impacts and is in discussions with the government to determine the best course of action.