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Erick to merge seven state construction companies into three

Jakarta Globe - March 19, 2024

Djibril Muhammad, Jakarta – State-Owned Enterprise Minister Erick Thohir said Tuesday his office is in the process of merging seven state-run infrastructure companies into three enterprises to boost efficiency and reshape their business focus.

The seven companies include Hutama Karya, Waskita, PTPP, Wijaya Karya, Brantas Abipraya, Adhi Karya, and Nindya Karya.

The merger process includes the separation of main business lines to allow the companies to focus on their respective expertise, Erick said in Jakarta.

Brantas Abipraya, Adhi Karya, and Nindya Karya will join forces in railway and water infrastructure projects, while Hutama Karya and Waskita will team up to handle toll road, state building, and commercial housing and apartment projects.

"Wijaya Karya and PTPP will no longer get involved in toll road projects, instead they will focus on seaport and airport projects. However, they will still work on residential building projects to conclude their previous job contracts," Erick said.

The minister said he will continue the efforts to streamline the number of SOEs to just 30, focusing on areas of public interest that require "the presence by the state".

He has until October to conclude the mammoth tasks before the term of the current cabinet expires.

Source: https://jakartaglobe.id/business/erick-to-merge-seven-state-construction-companies-into-thre