Dissolution of Seven State-Owned Companies

Erick Thohir, Minister for State-Owned Enterprises (BUMN), promises periodic updates on steps underway to dismantle 7 State-owned corporations.

As reported by Bisnis.com, The National Asset Company (PPA) — a subsidiary of BUMN– has been mandated to assume control of the seven BKPM companies slated for dissolution.

Minister Thohir confirmed that thorough surveys and reviews have confirmed that 7 BUMN companies will be dissolved and dismantled. The Minister said the companies selected have long suspended operations.

Erick Thohir, Minister for State-Owned Enterprises (BUMN)

The seven companies slated for deregistration are:

  • PT Merpati Nusantara Airlines – Founded in 1962 and headquartered in Jakarta, the company ceased formal operations on 01 February 2014 after 52 years of operating in Indonesia and the region. The company was closed due to a no-longer serviceable debt burden and cash shortages.
  • PT Kertas Kraft Aceh – Operating since 2007, this company eventually ceased operations due to difficulties in obtaining raw materials. The producer of sacks and packing for cement, at its height, enjoyed a production capacity of 135 tons per year in North Aceh. This company had the unique distinction of once employing the future President of Indonesia, Joko Widodo when he lived in North Sumatra.
  • PT Pembiayaan Armada Niaga Nasional, also known as  PT PANN, was involved in commercial shipping. PT PANN also owned hotels in Bandung and Surabaya.
  • PT Kertas Leces – the oldest paper factory in Indonesia- began suffering financial difficulties in 2014 when it could no longer meet its obligations. It was declared bankrupt in September 2018.
  • PT Istaka Karya is a construction company established in 1979 as PT Indonesian Consortium of Construction Industries (ICCI). President Joko Widodo dissolved Istana Karya by Presidential decree in 2023, following an earlier bankruptcy decree on 12 July 2022.
  • PT Industri Gelas, also known as “Iglas,” manufactures glass bottles. Iglas stopped production in 2015, only to suffer another setback when the CEO of Iglas, Daniel Sunarya, was accused of corruption.
  • PT Industri Sandang Nusantara (ISN) is a government-owned textile company producing thread and plastic containers. ISN had branches in Makassar, Pasuruan, Malang, Semarang, Tegal, Cilacap, and Bandung. The President declared the company officially closed in 2023 after ceasing production in 2018.

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