Suspension of Elevated Road Project Depresses Construction State-Owned Enterprises' Stock Prices

The suspension of the elevated road project due to the collapse of the Becakayu toll road construction formwork has negatively impacted the shares of state-owned construction companies (BUMN Karya). This, coupled with the decline in leading stock prices, caused the Jakarta Composite Index (IHSG) to fall 19.47 points (0.29%) to 6,643.3, leading to a decline in the shares of BUMN Karya and its subsidiaries.

As is known, the project contractor involved in the accident was PT Waskita Karya Persero Tbk. As a result, the shares of this company, traded under the code WSKT, immediately experienced a decline for two consecutive days. Only PT PP Persero Tbk saw an increase in its share price.

On Wednesday (February 21st), the closing price of WSKT shares fell 3.96% to Rp 2,940 per share. Compared to the closing price two days earlier (February 19th), Waskita's share price has fallen 5.47%. This decline is the deepest among BUMN Karya and its other subsidiaries. WSKT's subsidiary listed on the Indonesia Stock Exchange, PT Waskita Beton Tbk, also experienced a 2.86% decline over two trading days.