Hutama Karya to Wholly Acquire Istaka

Jakarta, July 22 (Antara) - Minister for State Enterprises Dahlan Iskan said state construction company PT Hutama Karya will wholly acquire PT Istaka Karya, also a state construction company, to increase its capacity. Acquisition of Istaka, which has faced bankruptcy charge over unsettled debts , will take place this year, Dahlan said here on Monday. Hutama Karya needs to increase its capacity to reach the seventh grade, a requirement to build big construction projects, Dahlan said. Istaka, which already has the seventh grade will become a subsidiary of Hutama Karya. It will be in charge of large projects allowing Hutama Karya to focus on the management of Trans Sumatra toll road project. Istaka will handle big projects such as building, road and bridge construction, engineering, procurement and construction (EPC) projects together with other subsidiaries of Hutama Karya. Hutama Karya has been assigned by the government to build the 2,700 kilometers Trans Sumatra toll road linking the northern and southern ends of the country's most populous island. In order to be able to carry out the assignment, Hutama Karya needs to be a special toll road developer. Dahlan said the administrative matter could be wrapped up this year after Hutama Karya has met the requirement in grade. In addition to Istaka, Hutama Karya also plans to acquire other subsidiaries, Dahlan said. (*)