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Balancing Financial Health and Debt Risk in State Construction Companies

Monday, March 25, 2024

The government plans to merge several state-owned construction companies, reducing their number to just three. This could spread debt problems among them.

arsip tempo : 173054330647.

Construction work by Waskita Karya on Becakayu Toll Road Section 1A in Prumpung, Jakarta, December 2021. TEMPO/Tony Hartawan . tempo : 173054330647.

EFFORTS to consolidate state-owned enterprises (SOEs) in the construction sector are entering a new phase. Speaking before Commission VI of the House of Representatives (DPR) on March 19, SOEs Minister Erick Thohir said he would merge seven state construction companies, known collectively as BUMN Karya, down to just three. “We are consolidating for (financial) health,” he said.

Consolidation is one way to save several constructi

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