Jakarta. Sovereign wealth fund Danantara aims to merge Indonesia’s state-run construction engineering firms by the first quarter of 2026, according to a senior official who admitted that the plan could not take place within this year due to financial troubles.

Danantara is currently undertaking a major overhaul of state firms for better efficiency. The nine-month-old fund has set its sights on consolidating the seven construction companies into three separate holdings. The seven firms in question are Hutama Karya, Waskita Karya, Wijaya Karya, Adhi Karya, PTPP, Brantas Abipraya, and Nindya Karya. However, Danantara’s chief operating officer Dony Oskaria said that the consolidation might need more time, citing that the agency is still looking for the “best scenario”.

“Merger is certain, there is no doubt about it. But we are still determining the best way to proceed with the merger. There are some options available,” Dony told the press in Jakarta on Wednesday evening.

“We have to carry the work to the first quarter of 2026. There are many problems in our construction firms. We still have to restructure the debt and even reevaluate our assets.”

Dony admitted that he could not confirm or deny whether Adhi Karya would join forces with PTPP as reported by local news outlets. He claimed that Danantara was still working on the merger details, including the pairings. 

Debt and losses have plagued Indonesia’s construction sector. 

Wijaya Karya suffered a Rp 3.21 trillion ($192.9 million) loss as of the third quarter of 2025 despite booking a Rp 741.43 billion net profit in the same period the previous year. The company, known by its ticker symbol WIKA, is planning to have another restructuring to deal with the interest-bearing debt that had hit Rp 29 trillion as of Q3 2025, news agency Bisnis Indonesia wrote.

Waskita Karya is in the red with a net loss of Rp 3.17 trillion as of September. PTPP's net profit dropped 97.92 percent year-on-year (yoy) to Rp 5.55 billion in Q3. The same goes for Adhi Karya whose net profit plummeted 93.62 percent yoy to Rp 4.4 billion.

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