12 SOEs to Receive Stimulus as Part of Economic Recovery Programs

Finance Minister delivers a press statement after attending a limited meeting through a video conference, Wednesday (3/6). (Photo by: Agung/PR).

As part of the national economic recovery (PEN) programs, the Government has announced plan to provide financial stimulus for twelve ailing state-owned enterprises (SOEs) deemed to have a major influence on the livelihoods of the people.

According to Minister of Finance Sri Mulyani Indrawati, the stimulus will be in the forms of distribution of social assistance, state capital injections (PMN), and bailout funds with a total amount of Rp52.57 trillion

Those twelve SOEs are state-owned electricity company PT PLN, state-owned construction company PT Hutama Karya, state-owned train operator PT KAI, state-owned investment company PT BPUI, state-owned agriculture holding PTPN, state-owned flag carrier Garuda Indonesia, the State Logistics Agency Perum Bulog, state-owned housing company Perum Perumnas, state-owned steelmaker PT Krakatau Steel, the Indonesian Tourism Development Corporation (ITDC), state-owned oil and gas company PT Pertamina, and state-owned micro financing company PT PNM.

“The role of SOEs in term of sovereign status has a large exposure to the financial system and is also owned by the Government with a substantial total asset,” the Minister said after a limited meeting, Wednesday (3/6).

For the record, PT PLN will receive additional subsidies for extended electricity discounts, state capital participation, and compensation payments from government receivables to be paid amounting to Rp45.4 trillion, PT Hutama Karya will receive RP11 trillion and PT KAI will receive Rp3.5 trillion in bailout funds, PT BPUI, which handles Jamkrindo and Askrindo, will receive a state capital investment of Rp6 trillion in the framework of emergency working capital loan guarantee program, and non-cash PMNs of Rp268 billion.

In the meantime, PTPN will receive a working capital loan bailout and for PNM that conducts programs for Ultra Micro (Umi) and the prosperous family economic development (Mekaar) program worth Rp2.5 trillion, Perum Perumnas will receive Rp650 billion, PT Pertamina will receive assistance in the form payment of compensation costs, the ITDC will receive RP500 billion for PMN this year, and Perum Bulog will receive Rp10.5 trillion for social assistance.

In addition to those twelve SOEs, Sri Mulyani also said that regional governments will also receive similar financial stimulus.

According to her, regional governments play an important role in the Government’s economic recovery program; therefore, Ministry of Finance has revised the State Budget posture of Rp5 trillion in incentive funds, as well as a special physical allocation fund to support local governments that will carry out labor-intensive self-management programs and those empowering local labors within the next five months before the end of the 2020 fiscal year.

“We allocate Rp8.7 trillion and we increase the loan facilities to the regions,” she said. (TGH/EN)

Translator: Muhardi
Reviewed by: M. Ersan Pamungkas