State-owned construction company PT Wijaya Karya (WIKA) has confirmed discussions regarding a potential merger with fellow state-owned company PT PP (PTPP).
If the merger proceeds, the combined entity is expected to focus on large-scale infrastructure projects such as ports, airports, factories, and residential developments.
Mahendra Vijaya, Corporate Secretary of Wijaya Karya, said that the company is prepared to follow any direction from the government regarding the merger.
He emphasized that WIKA is currently preparing its systems, assessing readiness, and reviewing various operational conditions, systems, and procedures to ensure it is ready for the merger should it occur.
“We are preparing ourselves so that if the merger takes place, WIKA will be ready to execute the projects,” Mahendra said during a visit to the Jakarta Sewerage Development Project (JSDP) on Thursday, December 12, 2024.
However, WIKA has not yet disclosed a timeline for when the merger process will be completed. “Let’s see. Right now, we are in the process of evaluation and analysis,” Mahendra added.
This announcement follows a statement from the Ministry of State-Owned Enterprises (SOEs) last month confirming that the consolidation of state-owned construction companies (BUMN Karya) is progressing.
Erick also revealed plans to reduce the number of SOEs in construction business from seven to three, aiming to streamline operations and improve the performance of these firms.
“This consolidation is part of a broader effort to restructure and enhance the expertise of each remaining BUMN,” Erick said.
Erick further stated that once approval is granted, the Ministry of SOEs will swiftly take measures to implement the merger, with the goal of accelerating the financial recovery and strengthening the capabilities of Indonesia’s state-owned construction companies.
