Indonesian Government to Consolidate Transportation SOEs

Merger Details and Rationale

The Indonesian government has confirmed plans to proceed with the merger of three major state-owned transportation companies: PT Pelni (Persero), PT Pelabuhan Indonesia (Persero) (Pelindo), and PT ASDP Indonesia Ferry (Persero). According to Aminuddin Ma'ruf, Deputy Head of the State-Owned Enterprises (SOE) Holding Company Supervisory Agency, the merger has been thoroughly studied and is ready for execution.

Strategic Objectives

This consolidation is a key component of the government's broader strategy to reduce the total number of SOEs from approximately 1,000 to around 200-220 entities. The reduction aims to enhance operational efficiency, eliminate redundancy, and create more competitive entities in their respective sectors. The transportation sector consolidation is expected to create a more streamlined and effective industry structure.

Implementation and Future Plans

While specific timelines were not detailed, the government has indicated that the merger will be executed in 2026. The consolidation is anticipated to bring about significant improvements in the transportation infrastructure and services by creating larger, more capable entities. This move aligns with the government's efforts to optimize the performance of SOEs and contribute to the overall economic development.