ABSTRACT:- This study evaluates the financial performance and health of state-owned construction companies in Indonesia from 2018 to 2023, including PT Adhi Karya, PT Pembangunan Perumahan, PT Wijaya Karya, PT Waskita Karya, PT Hutama Karya, PT Nindya Karya, and PT Brantas Abipraya. Under President Joko Widodo’s administration, the construction sector has experienced significant growth with major infrastructure projects such as the construction of toll roads and the relocation of the new capital. Although these developments have enhanced accessibility and connectivity, challenges such as high debt and regulatory complexities remain. Analysis using the Altman Z-Score model and various financial ratios indicates that some companies have experienced significant declines in financial performance, while others show signs of recovery. The study also evaluates external factors affecting the industry using PESTEL analysis and Porter’s Five Forces, highlighting the importance of regulatory reforms to improve the competitiveness and stability of this sector. Recommendations include debt restructuring, effective asset management, aggressive marketing strategies, and improving cash flow to strengthen the financial position of the companies. In conclusion, companies need to optimize operational efficiency and form strategic partnerships to address existing challenges and ensure long-term sustainability.

KEYWORDS – Indonesian Construction, Financial Performance, State-Owned Enterprises, Infrastructure Projects, Z-Score Analysis