Owned Enterprises to 30 by 2025-Dec 25
The State-Owned Enterprises (SOEs) Ministry is ramping up efforts to streamline state-owned companies through mergers, aiming to reduce their number from 47 to just 30. The initiative focuses on consolidating SOEs within similar sectors. SOE Minister Erick Thohir revealed that the merger process is underway for companies in the construction, port, ferry transportation, and railway sectors. In the railway sector, state railway operator Kereta Api Indonesia (KAI) will merge with train manufacturer Industri Kereta Api (INKA). Meanwhile, in the maritime sector, port operator Pelabuhan Indonesia (Pelindo), shipping company Pelayaran Indonesia (Pelni), and ferry operator ASDP Indonesia Ferry are also set to merge. For the construction sector, which currently has seven companies, the ministry plans to consolidate them into three clusters. The companies involved include Hutama Karya, Waskita Karya, PT PP, Wijaya Karya, Brantas Abipraya, Adhi Karya, and Nindya Karya.
“We have discussed 45 programs for the next five years, including consolidating 47 companies into 30,” Erick Thohir said during a press conference at the SOE Ministry in Jakarta on Tuesday. “This includes the KAI-INKA merger, but it requires further studies and processes,” he added. Erick provided updates on the merger progress, highlighting ongoing collaboration with relevant ministries. For construction SOEs, the ministry is coordinating with the Public Works Ministry since many of these companies handle government-assigned projects.
Similarly, the ministry is working closely with the Transportation Ministry to ensure the maritime and port sector mergers improve ferry transportation services. Since 2020, the SOE Ministry has been restructuring corporations through holding companies, mergers, and acquisitions. In 2017, there were 142 state-owned enterprises, but this number has declined to 47 as of this year.
According to the SOE Ministry, there are currently 12 SOE business clusters covering various sectors, including healthcare, manufacturing, and financial services. Additionally, the ministry has established a holding structure to enhance efficiency and performance. Each holding oversees 2 to 14 subsidiaries, categorized based on their respective business sectors. Read more at:
