Heaptalk, Jakarta — The Ministry of State-Owned Enterprises (SOEs) plans to consolidate state-owned construction enterprises to accelerate food and energy self-sufficiency and downstream programs. According to Minister of SOEs Erick Thohir, the infrastructure sector is vital in supporting these initiatives.
“Infrastructure is the key to the success of energy and food self-sufficiency as well as downstream since it allows us to reduce logistics costs at ports, airports, toll roads, and regional roads,” Erick stated during a press conference at the SOE Ministry office in Central Jakarta (11/15).
In detail, the ministry plans to reduce seven state-owned construction firms into only three entities. The seven companies are Hutama Karya, Waskita Karya, Pembangunan Perumahan, Wijaya Karya, Brantas Abipraya, Adhi Karya, and Nindya Karya. Erick explained, “We have discussed that these seven SOEs will be consolidated under three parent companies. This is part of our restructuring process.”
Enhancing efficiency
Reducing the number of state-owned construction firms is expected not to disrupt the government’s targets. Erick expressed optimism that this consolidation will enhance efficiency and accelerate the implementation of national strategic programs. “God willing, we will execute this. Previously, we have carried out restructuring efforts. We are working hard to ensure that these construction SOEs are in good financial health and operate efficiently,” he said.
Beyond business improvements, the Ministry continues its ‘clean-up’ initiatives within state-owned construction firms to uphold good corporate governance. Erick emphasized that the ministry will not hesitate to penalize individuals who violate regulations.
“Anyone found guilty of violations—recently, we’ve collaborated with the Attorney General’s Office, and many have been detained for their cases. We believe the current board of directors works professionally, transparently, and efficiently. We continue to enforce this,” Erick concluded.
