Hutama Karya (HK) has been appointed as holding company of State-Owned Enterprise (SOE). HK will handle the construction of several toll road projects. However, many still hope that the management of toll road division will be handled better. What are the pros and cons?
If HK only manages the division of highways from several constructions in SOE, it will have a clear focus on business. Toll road construction and management is one of the bottlenecks in Indonesia’s infrastructure and transportation. The construction, which is divided into several sections to fulfill tender requirements, generates sub-optimal quality and varies from one segment to another. Not to mention the toll roads management that often resulted in traffic jams.
Meanwhile, the constructions in SOE that are left by toll road divisions could improve other competences strategically. Wijaya Karya tbk (WIKA) could do better in exploring power plant and EPC construction. PP (Persero) tbk (PTPP) could develop its competence in marine infrastructure construction.
But to collect the toll roads divisions, a spin-off of toll roads will be necessary. It is harder to recall several constructions owned by the public. The process of spin-off, approval, as well as acquisition, will take longer than expected.
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