JAKARTA (TheInsiderStories) – Indonesian government transferred minority shares in the five state-owned enterprises (SOEs) with total values of Rp2.95 trillion (US$203.45 million) to PT Perusahaan Manajemen Aset (PPA), said the minister on Wednesday. Of the five companies, two are public companies, PT Indosat Ooredoo Tbk (IDX: ISAT) and PT Bank KB Bukopin Tbk (IDX: BBKP).
The other shares are PT Prasadha Pamunah Limbah Industri, PT Kawasan Industri Lampung, and PT Socfin Indonesia. Its expecting with the injection will be strengthening the capital structure of PPA which is currently being transformed together with other financial firm, PT Danareksa in the cluster towards National Asset Management Company (NAMCO). Danareksa as a candidate for holding of Danareksa – PPA cluster.
SOEs minister, Erick Thohir, the government surrenders 14.29 percent of Series B shares of Indosat, 3.18 percent Series A shares of Bank KB Bukopin, 5 percent shares of Prasadha, 10 percent shares of series B, series C and series D of Socfin Indonesia, and 20.36 percent shares of Kawasan Industri Lampung.
He continued, the transfer of shares would be useful for optimizing assets, can provide benefits to the state as a voter 100 percent shares of PPA, and also be a source of funding for the SOEs restructuring program. CEO of PPA, Yadi Jaya Ruchandi, said, the five companies are expected to strengthen their capital structure and improve flexibility in capital, as well as increasing the PPA’ business capacity in order to achieve this NAMCO.
CEO of Danareksa, Arisudono, said that the transfer of state-owned minority shares is the first step to support the PPA transformation. So far, the ministry has granted a special power of attorney to PPA to handle 23 SOEs as well as the transfer of state minority shares.
“For this trust, we are committed to becoming the leading turnaround company in Indonesia and a trusted partner in the fields of restructuring, investment and asset management,” said the CEO.
Initially, the state-owned firm proposed new capital injection of Rp5 trillion to support labor-intensive corporate financing. Based on Article 2, the central government transferred 776.62 million Series B shares of Indosat. Beside PPA, the other Series B shares owned by Ooredoo Asia of 65 percent and the rest hold by public.
Since last year, Joko Widodo’ administration has injected state-owned enterprises to support the national economic recovery program (ERP). In May 2020, Widodo has signed a Government Regulation Number 23 of 2020 regarding ERP, written that the government can carry out capital injection to SOEs, placement of the funds, government investment, and guarantees for the program.
in Article 8, its written that the capital injection is given in order to improve the capital structure of SOEs and subsidiaries affected by COVID-19. The funds can also be given to increase the business capacity of SOEs and subsidiaries, including to carry out special assignments in the implementation of the ERP Program. In total, funds disbursed to the state firm under the ERP Program reached Rp149.15 trillion during 2020, consisting of the acceleration of compensation and assignment payments also working capital bailouts.
PPA has a duty from SOEs minister, Erick Thohir, to restructure 21 state firm, such as PT Industri Gelas, PT Pembangunan Armada Niaga Nasional (PANN), PT Merpati Nusantara Airlines, PT Kertas Kraft Aceh, PT Istaka Karya, PT Kertas Leces, PT Djakarta Lloyd, PT Indah Karya, PT Doc and Shipping Surabaya, PT Industri Sandang Nusantara, and PT Barata Indonesia.
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