The construction sector especially the infrastructure soon will be extremely important especially with the government’s plan to encourage the economy to be evenly distributed throughout Indonesia. It is true to say that the vast number of construction companies makes auctioning a project to be difficult, causing difference in quality and failing to work synergistically. The result is damaged and dangerous toll roads.
So, the state-owned holding that bonds the builders and operators is a good step to ensure excellent toll road services for drivers. But why must Hutama Karya (HK), a company 100% owned by the government, become a parent company? This is regardless of HK is 100% being owned by government while both WIKA and WSKT are not.
Why Hutama Karya?
Toll road holding will include the companies engaged in the construction and toll road operation. How will Hutama Karya’s performance be as a parent company, compared to its subsidiaries?
The companies considered to be doing many toll road constructions to date are Hutama Karya (HK) that will be a parent company, Waskita Karya Tbk (WSKT), and probably Wijaya Karya Tbk (WIKA). The three construction companies had a lot of toll road construction portfolios spread all around Indonesia. As for the toll road operator, it will be certainly be managed by Jasamarga Tbk (JSMR).
According to the ratio shown in the table, it could be concluded that HK is smaller than its subsidiaries, and its performance has lower profitability. Its influence on the highways is significant, although it could not be called the most significant one. Best quality could not be guaranteed, considering the damaged JORR that happened recently under the HK management.
Are we only going to stop on land transport? What about the sea and air transport? HK has not had a big track record on these aspects.
But, Hutama Karya is the best construction company in terms of asset, turnover and performance compared to a state-owned constructor that is fully controlled by government. And if it is well-guarded, HK together with its subsidiaries can be the infrastructure builders of the transportation giant in the future.
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