Istaka Karya, Dubbed BUMN Ghost, Bankrupt Before Disbanding Page all

KOMPAS.com – The Central Jakarta Commercial Court decided BUMN PT Istaka Karya (Persero) bankrupt. Before Istaka Bankruptcythis construction company is also included in the plan to dissolve the SOE Minister Erick Thohir.

The dissolution was carried out because Istaka Karya was considered to be a burden on state finances. The three other SOEs that will be disbanded are PT Kertas Kraft Aceh, PT IGLAS, and the Nusantara Clothing Industry.

Meanwhile, bankruptcy is a legal process in which a company is declared unable to pay its debts by court order. Therefore, the company needs to make arrangements for assets to be then handed over to creditors, and if there is any remaining, it is handed over to shareholders.

Istaka Karya Profile

Compared to other state-owned enterprises such as Wika, Waskita, HK, Adhi Karya to PP, Istaka Karya’s business actions are relatively rarely heard by the public in the country.

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Istaka Karya is a state-owned company headquartered in Graha Iskandarsyah, Jalan Iskandarsyah Raya Number 66, Kebayoran Baru, South Jakarta.

Quoted from its official website, Istaka Karya was originally established as a consortium construction company in 1979 under the name PT ICCI which stands for Indonesian Consortium of Construction Industries.

The company later changed its name to PT Istaka Karya (Persero) which handles projects in several areas, especially government projects.

Several projects that Istaka Karya had worked on included the reclamation of Bitung Manado, Plaza Batamindo, and the YIA airport train. Istaka is also known for several fly over projects in several areas.

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Dubbed SOE Ghost

In a working meeting with the DPR, by members of the council, Istaka Karya was dubbed a “ghost SOE”. The PT Istaka Karya Labor Union also rejected the designation and sent a letter of protest.

“With this letter, allow us to convey that Istaka Karya is not a ghost SOE,” said Adriyansyah, chairman of the Palace Work Union, as quoted from Compass TV.

They refuse to be called “ghost SOEs” that are not operating because they are still working on four new projects this year.

As a state-owned enterprise, the name Istaka Karya itself is not very popular. In terms of assets and number of projects, Istaka Karya is far behind other construction SOEs.

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However, despite not working on many projects, Adriyansyah revealed that the BUMN he works for is currently working on at least four development projects.

Some of the projects include the construction of education and health facilities in Central Sulawesi, the construction of the Luminor Signature in Sumenep, the construction of an integrated government office in Brebes Regency, and the Royal Paradise apartment in Bandung.

On the other hand, the union admits that the current condition of the company is not so good. One of them is because it does not get full support from banks with the status of the PKPU process in which there has been an amicable decision between the company and creditors.

Istaka Karya also experienced difficult conditions in 2019 and 2020. The year 2019 which was a political year made it difficult for companies to get projects. This is because many project tenders have been postponed until the election ends.

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Meanwhile, 2020, which was the initial year of the Covid-19 pandemic, caused the entire order in Indonesia, both in the economic and other fields, to be affected.

Entering 2021, the union stated that the company was slowly recovering from adversity. The employees’ salaries, which had been nine months in arrears, had also been paid.

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