Observers Reveal Potential Impact Of BUMN Karya Restructuring

Illustration: Photo: Doc. ANTARA

JAKARTA - The Ministry of State-Owned Enterprises (BUMN) plans to merge a series of state-owned companies in the construction sector, from seven to three companies. This step is taken so that each company can focus on its specialities.

The seven SOEs that will be merged are PT Waskita Karya (Persero) Tbk. PT Hutama Karya (Persero), PT Brantas Abipraya (Persero), PT Nindya Karya (Persero), PT Adhi Karya (Persero) Tbk, PT Wijaya Karya (Persero) Tbk, PT Pembangunan Perumahan (Persero) Tbk.

The plan is that PT Waskita Karya (Persero) Tbk will join PT Hutama Karya (Persero).

Then, PT Adhi Karya (Persero) Tbk will become the holding holding company for Brantas Abhipraya and Nindya Karya. Third, combining PT Pembangunan Perumahan (Persero) or PTPP with PT Wijaya Karya (Persero) Tbk.

BUMN observer Herry Gunawan explained that the merger of BUMN Karya from seven to three companies will risk transmitting disease and affecting the company's performance.

"If the solution taken is a merger from seven to three, it's consolidated with merging. That means, there is a healthy work bumn, then combined or carrying unhealthy ones. The risk is that those who are healthy can be infected later, because they must support the unhealthy finances of SOEs," he told VOI, Wednesday, July 30.

For example, continued Herry, Hutama Karya or HK, who is currently in good health, is merged with Waskita Karya who is sick, and has the potential to transmit disease.

"For example, Adhi Karya or Hutama Karya which is relatively healthy is merged with Waskita Karya or Wijaya Karya who is sick. Maybe later the illness will spread. So there is a high risk," he said.

According to Herry, one holding can be the holding company for companies operating by region. With regionalization, he continued, subholding must also have an office in the center of the area of operation.

In my opinion, consolidation is carried out by means of the redistribution of operational areas. For the sick, go first to the 'Clinic Danantara'. First cure the disease. Now about the consolidation of redistribution of operational areas, for example Hutama Karya works in parts of Java and Kalimantan. Then Adhi Karya is partly Javanese with Maluku, and so on," he explained.

In this way, Herry assessed, there will be no cannibalism in business. Conditions are different if the consolidation is with a merger or merger.

"In the future, overlapping business will happen again. Playing in the same niche. Not healthy," he said.

Previously, the operational holding of the Danantara Indonesia Investment Management Agency (BPI), PT Danantara Asset Management (Persero) or DAM will continue its planned merger or merger of SOEs in the work sector this year.

Chief Operating Officer (COO) and Deputy Minister of SOEs Dony Oskaria said the BUMN Karya merger plan is one of Danantara's priority agendas in the remaining five months by 2025.

"The scheme will certainly be multi, one of which must have a definite merger. So, we are reviewing the reduction of the number of BUMN Karya," said Dony at the Parliament Complex, Senayan, Jakarta, Wednesday, July 27.

Dony menjelaskan, merger BUMN Karya ini bertujuan untuk membentuk entitas yang lebih efisien dan berfokus pada bisnis inti sebagai kontraktor. Nantinya, hanya akan ada tiga perusahaan yang bertahan.

Dony explained that the BUMN Karya merger aims to form a more efficient entity and focus on the core business as a contractor. Later, only three companies will survive.

"We are still calculating, more or less, there will be three strong work companies going forward and the business is only focused on being a contractor," he said.

In addition, Dony said that later the subsidiaries of state-owned construction companies that are not directly related to business cores will be consolidated.

"So it is the subsidiaries who are not the contractors who have been the source of several problems that we will group in," he said.