Antara News·Indonesia·Thursday, October 8, 2026 at 11:53 AM UTC

Indonesia's Danantara targets Nov 2026 merger for four state builders

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Jakarta (ANTARA) - Sovereign wealth fund Danantara Chief Operating Officer (COO) Dony Oskaria has set a target for the merger of four state-owned construction companies to be completed by the end of November 2026 at the latest.

The four companies are PT Nindya Karya and PT Brantas Abipraya, as well as PT Adhi Karya and PT PP, with the two mergers targeted for completion by the end of November at the latest.

"We hope that everything will be completed by the end of November at the latest," he said at the Investor Daily Summit 2026 here on Thursday.

Following the mergers, the recovery strategy will continue through the divestment of non-core assets.

All proceeds from the divestments will be allocated specifically to reducing outstanding operational debt, before the companies undergo a final debt restructuring process tailored to each entity's repayment capacity.

"We are resolving these companies one by one properly because I don't want things to be given a 'touch-up,' only to become a problem again later. Our fixes must be fundamental," Oskaria said.

In addition, the restructuring of state-owned construction companies with extremely heavy financial burdens, such as PT Waskita Karya and PT Wijaya Karya (WIKA), is considered to require deeper and more fundamental measures.

In WIKA's case, the company's debt burden stands at around Rp34 trillion, which is not matched by sufficient underlying assets.

Meanwhile, in the case of Waskita Karya, Danantara is studying restructuring options, including the potential optimization of its toll road asset portfolio, Waskita Toll Road.

"We really have to look at what to do with this company, because the President's direction is that once we carry out improvements, they must be complete," he said.

He said the merger of the four relatively healthier state-owned construction companies should be relatively straightforward to carry out.

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