Erick Thohir to Merge 7 SOEs into 3 Holding Companies

TEMPO.CO, Jakarta - Indonesian Minister of State-Owned Enterprises (SOE) Erick Thohir affirmed that the ministry will merge seven SOEs or companies operating in the infrastructure sector into three holding companies. “We are in the process of merging seven companies into three holding companies,” he said in Jakarta, on Tuesday, March 19.

The seven construction companies are Hutama Karya, Waskita, PP, Wijaya Karya, Brantas Abipraya, Adhi Karya, and Nindya Karya.

Erick said that the merger aims to improve the governance of state construction firms. The ministry has started classifying and grouping them so that they can focus on their respective tasks.

He outlined that Brantas Abipraya, Adhi Karya, and Nindya Karya will be merged to focus on water, railway, and other development projects, while Hutama Karya and Waskita will be united to work on toll roads, non-toll roads, buildings, and residential commercial projects.

“Wika (Wijaya Karya) and PP will not focus on the construction of toll roads, but seaports and airports. But they are still working on residential construction projects as these are their previous assets,” Erick explained.

He confirmed that PP will be the holding company for the merger with Wijaya Karya.

According to Erick, the SOE Ministry will continue to encourage consolidation so that state corporations have specialization and expertise, leading to more efficient performance.

Earlier, Erick Thohir revealed that there will only be 30 SOEs to focus on their respective duties and that the ministry still has time to conduct the consolidation by October 2024 or before the end of its term.

ANTARA

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