Indonesia's State-Owned Construction Companies Merger Delayed

Financial Health Concerns Drive Decision

The merger of Indonesia's state-owned construction companies (BUMN Karya) has been postponed to next year following concerns over their financial health. Rosan Roeslani, CEO of Badan Pengelola Investasi (BPI) Daya Anagata Nusantara (Danantara), stated that the decision to delay was made to ensure that the companies' financial condition improves before proceeding with the merger.

Conditions for Merger

The merger is contingent upon the companies achieving healthier financial statements and ensuring business continuity. Rosan emphasized that the current financial state of BUMN Karya is not optimal, necessitating the delay to allow for improvement. The companies will be merged once their financial health is restored, and their going concern is more secure.

Background and Implications

The initial plan was to complete the merger by the end of 2025. However, due to the current financial challenges faced by BUMN Karya, the timeline has been pushed to the following year. This strategic decision aims to create a more robust and financially stable entity post-merger, potentially enhancing their competitiveness in the construction sector.