Gov’t Unveils Criteria of SOEs Receiving Stimulus as Part of Economic Recovery Programs

Infographics on National Economic Recovery Programs (PEN). (Source: Ministry of Finance)

The Government has announced that twelve state-owned enterprises (SOEs) to be listed in the National Economic Recovery Programs (PEN) are those in good financial condition but are hardest hit by the COVID-19 pandemic.

Ministry of Finance has also unveiled criteria for SOEs eligible to receive the stimulus, among others, those with a major influence on the livelihoods of the people, the role the SOEs play, total assets owned, exposure to the financial system, and government ownership.

“The point of the National Economic Recovery Program’s is what we must do to improve the economy, not because of non-COVID problems. For example, we ensure that the micro, small, and medium enterprises are healthy, prudent customers long before the COVID-19 pandemic occurred,” Head of Ministry of Finance’s Fiscal Policy Agency (BKF) Febrio Kacaribu said in Jakarta, Thursday (4/6.).

For the record, an SOE can be eligible to receive stimulus from the Government if it meets the following criteria:

First, it is deemed to be maintained and developed including those with a high market share and market attractiveness, good performance, strong regulations, and systemic risks.

Second, it is deemed to be transformed including those with a high market share and market appeal, but low performance and systemic risks.

Third, it is deemed to be consolidated including those with a low market share, high market attractiveness, good performance, and systemic risks in terms of consolidation.

Fourth, it is deemed to be prioritized for public services including those with a high/low market share, low market attractiveness, good/poor performance, and Public Service Obligation (PSO) or other social values.

Fifth, it is deemed to be divested or partnered including those with a low market share and market appeal, good/poor performance, and social value.

In the meantime, as part of the national economic recovery (PEN) programs, the Government has announced plan to provide financial stimulus in the forms of distribution of social assistance, state capital injections (PMN), and bailout funds for twelve SOEs with a total amount of Rp52.57 trillion.

Those twelve SOEs in question 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. (Ministry of Finance/EN)

Translator: Muhardi
Reviewed by: M. Ersan Pamungkas