Jakarta (ANTARA) - Minister of State-Owned Enterprises (SOEs) Erick Thohir announced plans on Tuesday to merge seven state construction companies into three larger firms.

"We are in the process of combining seven companies into three companies," he remarked.

The seven companies are Hutama Karya, Waskita, Pembangunan Perumahan (PP), Wijaya Karya (Wika), Brantas Abipraya, Adhi Karya, and Nindya Karya.

The merger was aimed at improving the governance of state-run construction companies, he said, adding that his ministry had begun classifying and grouping of the companies based on their strengths.

Brantas Abipraya, Adhi Karya, and Nindya Karya will merge and focus on water development projects, rail construction, and other related areas.

Hutama Karya and Waskita will combine forces to handle toll road and non-toll road projects, along with institutional buildings and residential and commercial developments.

"Wika and PP will focus on seaports and airports, while also continuing their presence in the residential sector by taking on previously neglected assets," Thohir revealed, adding that PP will serve as the holding company for the merger with Wika.

The ministry is committed to further consolidation, aiming to create state-owned companies with specialized expertise. This process is expected to improve efficiency and performance across the board.

Earlier, Thohir expressed his belief that the number of SOEs could be reduced to 30. He remains confident in achieving this target by October 2024, before the current government's term ends.

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Translator: Maria Cicilia Galuh Prayudhia, Cindy Frishanti Oct
Editor: Anton Santoso
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