Istaka Karya Debt Guarantee Assets Auctioned To Pay Creditors

Chairman of the MPR RI Bambang Soesatyo received representatives of the Istaka Karya Victims Association in Jakarta, Thursday, March 23, 2023. (Photo: Doc. Antara)

JAKARTA - The Ministry of SOEs has prepared the best solution to solve the BUMN debt problem of PT Istaka Karya (Persero), one of which is by auctioning off debt guarantee assets through the Asset Management Company (PPA).

SOE Minister Erick Thohir said there are several schemes to solve the problems experienced by creditors who come from various micro, small and medium enterprises (MSMEs) that have not been resolved since 2013.

"One scheme, debt collateral assets will be auctioned off, then part of the proceeds from the auction will be used to pay MSME creditors contained in the creditor list," Erick said in a written statement in Jakarta, quoted from Antara, Monday, July 31.

Erick said he was ready to work hard to resolve the problems left by Istaka Karta through a legal process at the Central Jakarta District Court.

"God willing, we will solve the problem that actually existed before we served at the Ministry of SOEs," said Erick.

Istaka Karya is working on various infrastructure projects that involve many MSMEs and development vendors. One of them, the Ir Sedyatmo Toll Road Project in 2007-2008.

The project has not been paid by Istaka Karya since 2011. This company was then subject to Postponement of Debt Payment Obligations (PKPU) and was declared homologated so that Istaka Karya's debts were converted into shares in 2013.

In 2022, Istaka Karya was decided to bankrupt the Central Jakarta District Court. Istaka Karya was officially disbanded in March 2023 based on Government Regulation (PP) Number 13 of 2023.

However, the Ministry of SOEs and SOE Companies - PPA continues to help find the best solution.

The Central Jakarta District Court, curators and creditors are scheduled to announce the completion of MSME creditors, auctions of assets belonging to Istaka Karya and others on August 4, 2023.