JAKARTA – The decline in consumer purchasing power has the potential to pressure the performance of several state-owned construction companies (BUMN Karya), according to research by Kiwoom Sekuritas Indonesia. Among those affected are PT Adhi Karya (Persero) Tbk (ADHI), PT PP (Persero) Tbk (PTPP), and PT Wijaya Karya (Persero) Tbk (WIKA).

Although the impact is not as direct as in the consumer sector, Kiwoom Sekuritas Indonesia notes that the weakening purchasing power is still an indirect factor that could affect BUMN Karya’s financial performance, now under the umbrella of BPI Danantara.

Several BUMN Karya companies have ventured into residential and integrated area projects. For instance, ADHI, through PT Adhi Commuter Properti Tbk (ADCP), developed the Transit-Oriented Development (TOD) concept via LRT City projects across Bekasi, Ciracas, Tebet, and Jatibening.

Similarly, PTPP, through its subsidiaries, has developed projects such as Evenciio Depok and Grand Kamala Lagoon in Bekasi. Meanwhile, WIKA Gedung, in collaboration with WIKA Realty, offers affordable housing portfolios like Tamansari Hive and Teras Alun-Alun Bekasi.

Kiwoom Sekuritas Indonesia notes that these projects target middle-income buyers and first-time homebuyers, meaning sales depend heavily on bank financing, such as mortgage loans (KPR).

“When purchasing power weakens or mortgage interest rates are high, unit sales slow down, projects are delayed, cash flow for developers is disrupted, and the main contractors (BUMN Karya’s parent companies) also feel the impact.”

Additionally, cuts in the 2025 state budget (APBN) efficiency are expected to limit new project contracts for BUMN Karya. “New contracts from the state budget will become more restricted,” Kiwoom Sekuritas Indonesia explained.

According to data from  WIKA’s stock price has plunged 21.5% since the beginning of 2025 until the close of trading on Monday (21/4). Meanwhile, PTPP shares dropped 12.15%, while ADHI’s stock rose 4.39%. (KR/LM)