Indonesia launches major restructuring of state construction firms

Jakarta (ANTARA) - Indonesia’s State-Owned Enterprises Regulatory Agency (BP BUMN) has enlisted the Association of State-Run Banks (Himbara) to support the restructuring of two state construction firms, PT PP and PT Adhi Karya.

“We are learning from experience. The restructuring must serve as a turning point to help state construction companies grow stronger and healthier, improve their management, and pursue sustainable growth to support national development,” BP BUMN Head Dony Oskaria said.

Contacted by ANTARA from Jakarta on Thursday, he described the restructuring as a strategic measure to strengthen the companies’ financial positions and governance while redirecting financing toward productive and commercially viable projects.

To that end, Oskaria said he chaired a meeting attended by executives of PT PP and PT Adhi Karya, along with directors of three state-owned lenders—Bank Mandiri, BRI, and BNI.

He explained that the meeting reviewed the restructuring progress of the two construction firms and explored financing support from Himbara to facilitate their transformation.

Elaborating further, he said discussions focused on designing financing schemes to enable both companies to undertake commercially viable projects, improve performance, and ensure long-term business sustainability.

Beyond the financial aspect, BP BUMN intends the restructuring to encourage better corporate administration, strengthen risk management, and develop more resilient business models.

Oskaria emphasized that the restructuring is necessary for PT PP and PT Adhi Karya to enhance their capacity to support national strategic projects, contribute more to state revenue, and accelerate infrastructure development.

The restructuring is part of a broader government overhaul of state-owned enterprises, aimed at reducing the number of companies and subsidiaries from more than 1,000 to around 250.

President Prabowo Subianto has said the reform aims to reduce losses from underperforming SOEs, improve transparency, streamline spending, and redirect state assets toward public-oriented initiatives.

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Translator: Putu Indah, Tegar Nurfitra

Editor: M Razi Rahman

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