Indonesia's State-Owned Construction Companies Merger Slated for Early 2026 Completion

Background and Current Status

The merger of Indonesia's state-owned construction companies (BUMN Karya) is expected to be finalized in the first quarter of 2026. This was announced by Aminuddin Ma'ruf, Deputy Head of the State-Owned Enterprises (SOE) Management Body. The process is currently still under review as various aspects are being assessed.

Companies Involved

The BUMN Karya companies slated for merger include:

• PT Hutama Karya (Persero)
• PT Waskita Karya (Persero) Tbk
• PT Wijaya Karya (Persero) Tbk
• PT Adhi Karya (Persero) Tbk
• PT PP (Persero) Tbk
• PT Brantas Abipraya (Persero)
• PT Nindya Karya (Persero)

Rationale and Prioritization

The merger aims to strengthen the financial performance and competitiveness of these state-owned companies. According to Aminuddin Ma'ruf, the companies with financial performance issues will be prioritized in the merger process. However, companies like Nindya Karya and Brantas Abipraya, which are considered to have healthy financials, will not be prioritized.

Challenges and Next Steps

Dony Oskaria, COO of Danantara (the entity overseeing the merger), previously stated that the merger couldn't be completed this year due to the complexity of the process. The companies are currently undergoing a thorough assessment to determine the best merger structure. The delay to early 2026 allows for a more comprehensive evaluation and preparation, ensuring the merger achieves its intended objectives.