The transfer of Series B shares of several state-owned construction companies owned by PT Danantara Asset Management (DAM) to the State-Owned Enterprise Regulatory Agency (BP BUMN) is considered to encourage private companies to participate in government projects.
The transfer of shares was carried out by four state-owned construction companies, namely PT Waskita Karya (Persero) Tbk (WSKT), PT Wijaya Karya (Persero) Tbk (WIKA), PT Pembangunan Perumahan (Persero) Tbk (PTPP), and PT Adhi Karya (Persero) Tbk (ADHI), as stated in the disclosure of information to the Indonesia Stock Exchange (IDX) and the Financial Services Authority (OJK) in early January 2026.
On Monday (12/1), a number of economists assessed that the transfer was a correction in the management of state-owned enterprises, both in terms of management and administration, amid the swelling financial problems of several issuers.
Head Researcher at the Center of Macroeconomics and Finance Institute for Development of Economics and Finance (Indef) M. Rizal Taufikurahman said that this major consolidation in the construction sector presents both opportunities and challenges for the private sector.
"If the government positions state-owned enterprises as partners, the private sector can participate more freely. Conversely, strengthening the dominance of state-owned enterprises could actually drive out the private sector," Rizal told SUAR Jakarta on Monday (12/1).
According to Rizal, state-owned enterprises have been placed in the logic of pure investment holdings. "This creates a distance between decision makers and the actual fiscal risks borne by the state," Rizal told SUAR on Monday (12/1/2026).
Rizal emphasized that SOEs should focus on strategic and high-risk projects that are less attractive to the private sector, while bankable projects should be opened up to the private sector. "Without disciplined management, large infrastructure spending has the potential to be inefficient and increase hidden risks to the state budget," he said.
By returning control to state-owned enterprises, Rizal said, the government wants to be fully present as the owner. He gave examples such as public assignments must be paid transparently, project risks must be calculated openly, and the state will no longer automatically bear the burden of state-owned enterprise failures.
A similar sentiment was expressed by Airlangga University economist Gigih Prihantono, who warned that consolidation could potentially suppress private participation if state-owned enterprises became too dominant. Conversely, flexible and collaborative management opens up opportunities for partnerships, innovation, and additional investment.
"This consolidation is a momentum to improve governance, increase efficiency, but remain financially sound and sustainable. This is an opportunity for the government to reaffirm the direction of state-owned enterprises, from project implementers to professional and competitive development partners," he said.
Based on the companies' financial reports, in the first half of 2025, the four state-owned construction companies above recorded operating cash deficits. WSKT experienced a deficit of IDR 1.26 trillion, WIKA IDR 1.05 trillion, ADHI IDR 181.35 billion, and PTPP IDR 305.66 billion.
Waskita Karya was one of the first companies to report the transfer of shares. Based on information disclosed on January 8, 2026, WSKT transferred 217,056,333 Series B shares, equivalent to 0.75% of ownership, from DAM to BP BUMN.
"The type of information or material facts is the transfer of shares owned by PT Danantara Asset Management (Persero) to the State-Owned Enterprise Regulatory Agency in the context of implementing Law Number 16 of 2025," wrote Waskita Karya management in its report, quoted on Monday (12/1/2026).
The law regulates direct state ownership of shares through the Head of BP BUMN at 1% in the form of Series A Dwiwarna shares. These shares have special rights and a strategic position in corporate decision-making.
With this transaction, the transferred Series B shares will be reclassified as Series A Dwiwarna shares, giving BP BUMN a 1% stake in WSKT. In terms of voting rights, BP BUMN's ownership increased from 0% to 0.75%, while DAM's decreased from 75.349% to 74.60%. The government remains the controlling shareholder or ultimate beneficial owner of Waskita Karya.
A similar step was taken by Wijaya Karya by transferring 0.91% of DAM's Series B shares to BP BUMN. With this transaction, BP BUMN now holds 362,917,027 WIKA Series B shares, while DAM still controls 35,928,785,753 Series B shares.
PT PP also transferred 31,619,477 Series B shares, equivalent to 0.51% of ownership, from DAM to BP BUMN. DAM's ownership in PT PP decreased from 3,161,947,835 Series B shares to 3,130,328,358 Series B shares.
Adhi Karya became the fourth state-owned construction company to transfer shares. On January 5, 2026, ADHI transferred 54.09 million Series B shares, equivalent to 0.64% of ownership, from DAM to BP BUMN. After the transaction, BP BUMN controls 54.09 million Series B shares with 0.64% voting rights, while DAM still holds 5.35 billion Series B shares, equivalent to 63.69% voting rights.
"The Republic of Indonesia, through its direct ownership of ADHI's Series A Dwiwarna shares, remainsthe ultimate beneficial owner of ADHI through its indirect ownership via DAM," wrote the management.
All of these share transfers were conducted between state entities, not through trading mechanisms on the stock exchange, and did not affect public ownership or the operational activities of each company.
Efficient
Airlangga University economist Gigih Prihantono added that this consolidation is an effort to create a more efficient, integrated, and accountable state-owned enterprise structure.
"So far, state-owned enterprises have often experienced overlapping functions, making the risk of duplication and waste inevitable. With consolidation, state-owned enterprises can focus more on their strategic roles," he said.
The long-term impact is believed to be positive for economic efficiency and infrastructure spending. By reducing duplication of functions and utilizing larger operating scales, project costs can be reduced, while the number of projects increases.
Rizal from Indef added that this transfer could have an impact on the sustainability of infrastructure projects. However, according to him, it depends on the transition management.
The initial adjustment, he said, may cause a temporary slowdown, but in the medium term, consolidation will enable the filtering of truly viable projects and improve the quality and financial health of infrastructure.
"Balancing SOEs as agents of development and business entities is not a matter of choosing one over the other, but rather a matter of policy design integrity," Rizal asserted.
Market signals
In response to this, Director of Reliance Sekuritas, Reza Priyambada, said that market players hope that consolidation will encourage improved company performance, which will ultimately be reflected in share price movements.
"For now, investors are still observing the direction of this policy going forward. If there is an improvement in performance, the market response will likely be positive," Reza explained to SUAR.
One important aspect of this consolidation is the conversion of shares into Series A Dual Class shares. Reza believes that this change in share structure could be a positive catalyst, especially if the transfer of control through Danantara improves corporate governance and financial performance.
"The impact should be positive, because improved issuer performance, better governance, and the achievement of corporate targets will increase the attractiveness of the shares," he said.
Communication strategies are also key for BUMN Karya to maintain investor confidence. Reza emphasized the importance of transparency regarding performance direction, corporate actions, and business development.
"Visible improvements in performance will send a positive signal to market participants. Open communication is sufficient to maintain confidence," he said.
Meanwhile, for investors, the most crucial factors now are news about corporate actions, project developments, and actual business performance.
"All of this information will be key indicators before deciding to enter or increase ownership in state-owned construction companies," he said.
