Danantara Reveals the Complicated Problems of State-Owned Construction Firms: Hundreds of Trillions in Debt, Subsidiaries Also in Trouble
Jakarta — The Indonesia Investment Authority (BPI) Danantara has revealed the scale of the problems currently facing state-owned construction companies. Combined, the total debt of these companies has reached hundreds of trillions of rupiah.
Danantara COO Dony Oskaria said the agency is working to resolve various problems within the state-owned construction companies gradually. According to him, the large amount of debt is one of the factors making the resolution process time-consuming.
“This is what takes time, and the public also needs to know that this problem has been around for quite some time and is substantial. This is why we are handling it one by one. Because the impact is that their total debt reaches hundreds of trillions of rupiah. This is the combined total among the construction companies,” Dony said at the Parliament Complex in Senayan, Jakarta, Tuesday (August 18, 2026).
Dony said the problems facing the state-owned construction companies are not limited to their large liabilities and debt. According to him, similar problems also exist among many subsidiaries under each state-owned construction company.
“I am saying this as it is. First, their liabilities are very large. Their debts are very large,” he said.
According to Dony, the situation has become increasingly complex because each state-owned construction company has numerous subsidiaries. Each company, he said, has more than 20 subsidiaries.
“The problem is not only at the holding company level. They also have subsidiaries that are facing problems. Just imagine, each of them has more than 20 subsidiaries,” Dony said.
Therefore, Danantara has to resolve the problems one by one. This process is considered one of the reasons why restructuring the state-owned construction companies takes time.
“So we have to sort them out one by one, one by one, one by one. That is what takes time,” he added.
No Instant Solution
Dony revealed that Danantara could actually take a faster approach to resolving the problems facing the state-owned construction companies. However, such measures could have an impact on workers and the broader business ecosystem.
According to him, one option would be to declare a company bankrupt or carry out a merger. However, these options have not been immediately pursued because Danantara is also considering their broader impact.
“But we are also considering the impact. What would the impact be on the other parts of the ecosystem? So we have to be very careful,” he said.
Given the complexity of the problems, Dony could not yet confirm when all issues involving the state-owned construction companies would be resolved.
He said Danantara is still aiming to resolve the problems by the end of 2026. However, the process continues to face fairly complex dynamics.
“I can’t say for certain because the process is ongoing. I am still working to have this completed by the end of this year. But the dynamics involved in resolving this are quite complicated,” Dony added.
