Jakarta – The planned merger between state-owned construction companies PT PP (Persero) Tbk (PTPP) and PT Adhi Karya (Persero) Tbk (ADHI) is targeted for completion by the end of December 2026. However, the deal has yet to reach a final decision as both companies continue to conduct reviews and evaluations.
PTPP Finance Director Faizal Rahmad said the year-end completion target remains indicative and could change depending on several stages that must be completed before the merger can proceed.
“The target timeline may be adjusted, taking into consideration the completion of the restructuring process, the results of the review and due diligence, the fulfillment of corporate and/or regulatory approvals, as well as other relevant conditions,” Faizal said in an information disclosure to the Indonesia Stock Exchange (IDX) on Friday (September 4, 2026).
PTPP is currently prioritizing its corporate restructuring while strengthening its financial and operational position. Once these stages are completed, the merger process will proceed based on the results of the assessment and directions from shareholders.
The proposed merger is part of a broader consolidation agenda for Indonesia’s state-owned construction companies, driven by Danantara Indonesia. The combination of PTPP and ADHI is expected to form part of efforts to reorganize state-owned companies in the construction sector.
No Decision Yet on Surviving Entity
Although a target completion date has been announced, there has been no final decision on the structure of the merger or which company will remain as the surviving entity.
Faizal said the review and due diligence process are still underway. As a result, the final decision will have to take into account various factors, including the companies’ financial and operational conditions, as well as legal, tax, governance, risk management and business prospects.
“These matters will be determined by the relevant authorities, taking into consideration financial, operational, legal, tax, governance, risk management and business prospects, as well as the interests of shareholders and stakeholders,” he said.
Adhi Karya has also stated that the end-2026 completion date is an indicative target set by its majority shareholder. The implementation will remain subject to the results of the review, shareholder decisions, the readiness of both companies, and the fulfillment of all required procedures and regulatory requirements.
