This would involve changes to the original plan to merge the seven companies into three corporations, Thohir revealed. They could be merged to make two or even one corporation instead, he expounded.
"If state spending is lowered, I agree that we will refocus BUMN Karya. Of course, the pressure would be significant," he said during a working meeting at the parliament complex here on Thursday.
As of now, he added, the plan to consolidate the seven BUMN Karya into three entities is well-calculated.
The seven state construction companies that will be merged into three corporations are PT Hutama Karya, PT Waskita, PT PP, PT Wijaya Karya, PT Brantas Abipraya, PT Adhi Karya, and PT Nindya Karya.
The minister did not rule out the possibility of merging the companies into two or even one BUMN Karya if, in the next two-three months, the companies are impacted by budget efficiency measures.
"After we observe the situation over these two–three months, it is not impossible that the merger of BUMN Karya could go from three to two, or even one," he stated.
With the new bill on SOEs, the process of merging BUMN Karya and others could be expedited, he added.
Earlier, legislator Ahmad Labib raised concerns about the impact of budget efficiency on the growth of SOE businesses as state spending is one of contributors to the sustainability of SOE business growth.
"Is there an effect (of budget efficiency) on the growth and sustainability of SOE businesses? Especially related to those state construction companies that are often discussed (by the public)," he asked.
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Translator: Putu S, Kenzu
Editor: Azis Kurmala
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