Why did President Prabowo revoke the funding for Waskita Karya?

President Prabowo Subianto has expressed a preference for private sector involvement in infrastructure projects, believing they are often more efficient and cost-effective than state-owned enterprises. The revocation aligns with this philosophy.

Where will the revoked funding now be directed?

The funds have been reallocated to PT Hutama Karya (Persero) to facilitate the acquisition of assets from Waskita Karya as part of a restructuring effort.

What are National Strategic Projects (PSN)?

National Strategic Projects (PSN) are infrastructure projects deemed crucial for Indonesia's economic development and are given priority status by the government.

What is Waskita Karya's role in Indonesian infrastructure?

Waskita Karya is a state-owned construction company that has been heavily involved in numerous infrastructure projects across Indonesia, including toll roads, bridges, and other public works.

How might this decision impact future infrastructure development in Indonesia?

The revocation of funding suggests a potential shift towards greater private sector involvement in Indonesian infrastructure,which could lead to new opportunities for private companies but also raises questions about the role of state-owned enterprises.

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Q: How much funding was revoked from Waskita Karya?

The revoked National Capital Participation (PMN) amounted to IDR 3 trillion, which is approximately $197 million USD.

Business

3 Jumbo companies will IPO, one of which is Prajogo Pangestu issuer

by Priya Shah – Business Editor June 23, 2025

written by Priya Shah – Business Editor

Indonesian IPO Market Gears Up for Lighthouse Companies

Indonesia’s stock market is anticipating a surge of initial public offerings (IPOs) from “Lighthouse Companies” this year, promising substantial capital injections. This marks a pivotal moment, potentially reshaping the financial landscape with significant investment opportunities.

IPO Plans Unveiled

The Indonesian Stock Exchange (IDX) is anticipating three companies to go public in the “Lighthouse” category, with substantial market capitalization. According to IDX Assessment Director I Gede Nyoman Yetna, these companies are expected to list this year. One of these firms is Prajogo Pangestu’s PT Chandra Daya Investment Tbk (CDIA).

Nyoman stated on Monday, June 23, 2025, that three prospective companies, including CDIA, are poised to record shares within the Lighthouse IPO classification. They plan to list in 2025.

The IDX is aiming for five Lighthouse IPOs in 2025. Three companies have already registered, including PT Raharja Energi Cepu Tbk (Ratu), PT Bangun Kosambi Sukses Tbk (CBDK), and PT Yupi Indo Jelly Gum Tbk (Yupi). Nyoman added that three companies have been recorded toward this target.

Chandra Daya Investment is linked to PT Chandra Asri Pacific Tbk (TPIA). CDIA plans to release 12.48 billion shares, approximately 10% of the company’s issued and fully paid capital after the IPO. The stock price range is set between Rp. 170 and Rp. 190 per share.

This IPO could generate approximately Rp 2.37 trillion for CDIA. The company has appointed several securities firms as emission and insurance guarantors.

BRI Danareksa Sekuritas’ IPO Initiatives

BRI Danareksa Sekuritas (Brids) intends to introduce about three companies to the Indonesia Stock Exchange (IDX) during the second half of 2025. These firms are expected to raise around Rp 1 trillion from their IPOs. The companies involved operate in the consumer, trading, and manufacturing sectors, according to Director Laksono Widodo.

Laksono mentioned that the three companies are currently in the IPO queue. He also noted that no companies have withdrawn from the IPO schedule. Laksono believes that these firms will be attractive to investors.

“We plan in the second semester, so we don’t know yet. It is still too early to be able to walk and not,” he added.

Looking Ahead

The anticipated IPOs signal growing confidence in Indonesia’s capital markets. Recent data indicates a 15% rise in IPOs across Southeast Asia last year (Statista 2024), reflecting a regional trend of expansion.

The new IPOs are expected to bring new investment opportunities, helping to energize Indonesia’s economy.

June 23, 2025 0 comments

News

Prabowo Revokes Rp3T Waskita Karya Capital Rule: What Happened?

by Emma Walker – News Editor June 17, 2025

written by Emma Walker – News Editor

Prabowo Subianto Rescinds $197 Million Waskita Karya Funding

Table of Contents

Prabowo Subianto Rescinds $197 Million Waskita Karya Funding

Jakarta, Indonesia – President prabowo Subianto has revoked a planned IDR 3 trillion (approximately $197 million USD) National Capital Participation (PMN) for PT Waskita Karya (Persero) Tbk, a state-owned construction company. the decision, formalized in Government Regulation (PP) Number 20 of 2025, effectively reverses a prior commitment made to bolster Waskita Karya’s capital structure.

The regulation, signed into law on May 6, 2025, rescinds Government Regulation Number 34 of 2022, which initially authorized the capital injection.This move signals a potential shift in the Indonesian government’s approach to infrastructure development, favoring private sector involvement over direct state funding for certain projects.

Background of the Revoked Funding

The now-canceled IDR 3 trillion PMN was originally allocated by former President Joko Widodo (Jokowi) with the intention of strengthening Waskita Karya’s financial position and enhancing its capacity to complete National Strategic Projects (PSN), notably in the toll road sector.The funds were to be drawn from the 2022 state Budget (APBN). Though,the plan was ultimately scrapped,and the funds were slated to be returned to the state treasury.

Did You Know? Waskita Karya was heavily involved in the construction of several sections of the Trans-Java toll road, a major infrastructure project aimed at improving connectivity across the island of Java.

Waskita Karya’s Viewpoint

In 2023, Waskita karya’s President Director, Mursyid, disclosed that the Privatization committee had approved the return of the 2022 PMN funds to the State General Cash Account.This decision effectively halted the company’s planned rights issue and privatization process, according to information released to the Indonesia Stock Exchange (BEI).

Shift to Hutama Karya

Following the decision to retract the PMN from Waskita Karya, State-owned Enterprises (BUMN) Minister Erick Thohir redirected the funds to PT Hutama Karya (Persero). The intended purpose of this reallocation was to enable Hutama Karya to acquire assets from Waskita Karya as part of a broader restructuring effort.

Prabowo’s Stance on State Capital Participation

President Prabowo Subianto has expressed reservations about the effectiveness of state capital participation, particularly in the construction sector. He voiced his concerns at the International Conference on Infrastructure (ICI) 2025 in Jakarta, emphasizing his belief that the private sector is frequently enough more efficient and capable in handling infrastructure projects.

“I believe in the strong role of the state for intervention overcoming poverty, hunger, improved education… but I also know that in certain fields, especially physical development construction, the private sector is often more modern, efficient, and on time by saving a large budget,” Prabowo stated at the conference The Jakarta Post reported.

Prabowo criticized the perceived inefficiencies of state-owned enterprises, suggesting that they sometimes operate without a strong sense of urgency due to the expectation of continued financial support from the government.

Pro Tip: monitoring government regulations and policy shifts is crucial for understanding the future direction of infrastructure development in Indonesia.

Potential Implications

The revocation of funding for Waskita Karya and President Prabowo’s statements suggest a potential shift towards greater private sector involvement in Indonesian infrastructure projects. this could lead to increased opportunities for private companies, both domestic and international, to participate in the country’s ongoing development initiatives. However, it also raises questions about the future role of state-owned enterprises in the sector.

What impact will this decision have on ongoing infrastructure projects? How will it affect the competitive landscape within the construction industry?

Key Figures
Entity	Funding (IDR)	Funding (USD)	Status
Waskita Karya (Originally)	3 Trillion	$197 Million	Revoked
Hutama Karya (Currently)	3 Trillion	$197 Million	Reallocated

Evergreen Insights: The Evolving Landscape of Indonesian Infrastructure

Indonesia’s infrastructure development has been a key focus of successive administrations, recognizing its importance for economic growth and connectivity. The country has historically relied on a mix of state funding and private investment to finance these projects. However, the balance between these two approaches has shifted over time, influenced by factors such as government priorities, economic conditions, and the perceived efficiency of different models.

The current administration’s emphasis on private sector involvement reflects a broader trend towards greater fiscal responsibility and a desire to leverage the expertise and resources of private companies. This approach is not without its challenges, as it requires a robust regulatory framework, clear procurement processes, and effective risk management strategies to ensure that projects are delivered on time and within budget. According to a 2024 report by the World Bank,Indonesia needs to improve its regulatory environment to attract more private investment in infrastructure World Bank.

Frequently Asked Questions (FAQs)

Share your thoughts: How do you think this policy shift will affect Indonesia’s infrastructure development? Subscribe to our newsletter for more updates on global economic trends.

June 17, 2025 0 comments

Business

Adhi Karya’s Rp 5.9 Trillion Payment: Details Inside

by Chief editor of world-today-news.com May 1, 2025

written by Chief editor of world-today-news.com

Adhi Karya’s 2024 performance: Debt Reduction and Leadership Stability

May 1, 2025

Key Takeaways from the Annual General Meeting

adhi Karya (ADHI) successfully reduced liabilities by 18.8%, equivalent to Rp 5.9 trillion. [[2]]
The company’s net profit increased by 18% compared to the previous year.
the board of directors will remain the same. [[1]]
Amendments were made to the use of funds from a limited public offering.

Financial performance Highlights

PT Adhi Karya (Persero) Tbk. has announced significant strides in it’s financial health following the 2024 Annual General Meeting of Shareholders (AGMS). The meeting, which approved the audited performance report for the fiscal year 2024, revealed a ample reduction in liabilities and an increase in net profit.

The company reported an 18.8% decrease in liabilities, amounting to Rp 5.9 trillion.[[2]] This reduction was primarily driven by:

Obligations to partners: Rp 2.1 trillion
Obligations to banks and other financial institutions/bonds: Rp 3.1 trillion

Furthermore, Adhi Karya experienced an 18% increase in net profit compared to the previous year. According to the company’s statement, this growth was fueled by two key factors:

2024’s net profit increased by 18.0% when compared to the previous year. This is caused by two things, the first is the gross profit margin that increased by 12.2% when compared to the previous year of 11.6%. secondly, JV’s profit growth from the previous year was 81.4%.

Strategic Adjustments in Fund Allocation

The AGMS also addressed amendments to the plan for utilizing funds from a limited public offering thru the addition of capital by giving the right to order effect II (“PMHmetd II”). These changes are aimed at optimizing the construction of a critical infrastructure project.

The company is re-evaluating how it uses its capital.

Changes in the use of funds to optimize the construction of the Solo-Yogyakarta-Kulon Progo toll road project that has been carried out by the study and review of the BPKP. The proposal of this change changes the essence of the use of funds from the results of public offers both in contributing to the economy and to the interests of the wider community.

Pro Tip: Strategic allocation of funds is crucial for infrastructure projects. Regular reviews and adjustments, like the one conducted by BPKP, ensure that resources are used efficiently and effectively, maximizing economic and community benefits.

Leadership Confirmation

A significant outcome of the AGMS was the confirmation of the company’s management structure. the composition of the Board of commissioners and directors remains unchanged,providing stability as Adhi Karya continues its strategic initiatives. [[1]]

The confirmed leadership is as follows:

Board of Commissioners:

President Commissioner: Dody Usodo Hargo
Independent Commissioner: R. Erwin Moeslimin Singajuru
Independent Commissioner: Elan Suherlan
Independent Commissioner: Rustam Sofyan Sirait
Commissioner: bob Arthur Lombogia

Directors:

president Director: Entus Asnawi Mukhson
Director of Human Capital and Legal: Ki Syahgolang Permata
Finance Director: Bani Iqbal
Operations Director I: Alloysius Suko Widigdo
Director of Operations II: Harimawan
Director of Operations III: Vera Kirana
Director of Risk Management and System: Yan Arianto

FAQ

What was the main outcome of the AGMS?: Approval of the 2024 audited performance report, showcasing a significant reduction in liabilities.
How much did Adhi Karya reduce its liabilities?: By 18.8%,equivalent to Rp 5.9 trillion.
What contributed to the increase in net profit?: Increased gross profit margin and JV’s profit growth.
Were there any changes to the leadership?: No, the composition of the Board of Commissioners and Directors remains the same. [[1]]

May 1, 2025 0 comments