Danantara COO reports complex restructuring for BUMN Karya

Dony Oskaria, Chief Operating Officer of Danantara Indonesia, has reported that the restructuring and health improvement process for state-owned construction enterprises (BUMN Karya) remains ongoing and complex. The process is hindered by massive liabilities totaling hundreds of trillions of rupiah and issues that extend beyond parent companies to include more than 20 subsidiaries and sub-entities per enterprise.

Oskaria emphasized that Danantara is avoiding instant solutions, such as immediate mergers or bankruptcy filings, to prevent negative impacts on the broader business ecosystem, including workers, creditors, and investors. Instead, the agency is pursuing a gradual approach that involves examining business models and cost structures. While there is a target to complete the restructuring by the end of 2026, Oskaria noted that the complexity of issues, including legal challenges facing WIKA Realty and problems with LRT City, makes the timeline uncertain.