JAKARTA (TheInsiderStories) – President Joko Widodo has signed a special rule Government Regulation Number 23 of 2020 regarding Economic Recovery Program (ERP), which was just enacted yesterday (05/11). The regulation written that the government can carry out capital injection to state-owned enterprises (SOEs), placement of funds, government investment, and guarantees for the program. The program can also be implemented through state expenditure.
In policy making, the coordinating minister for the economic affairs, the coordinating minister for maritime and investment affairs, the minister of finance, the governor of Bank Indonesia, chairman of the Financial Service Agency and Deposit Insurance Agency will determined the implementation strategy of the ERP, including in setting priorities in the business sectors affected by the epidemic.
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.
Based on the official data sent to parliament, it was written that the government allocated Rp25.27 trillion to affected SOEs or SOEs that received special assignments. In details, power producer PT Perusahaan Listrik Negara (PLN) will received Rp5 trillion, toll operator PT Hutama Karya Rp11 trillion, financial holding, PT Bahana Pembinaan Usaha Indonesia Rp6.27 trillion, financial services firm PT Permodalan Nasionanal Modal Rp2.5 trillion, and PT Pengembangan Pariwisata Indonesia with Rp500 billion.
In total, funds disbursed to SOEs under the ERP Program reached Rp149.15 trillion, consisting of the acceleration of compensation and assignment payments also working capital bailouts. For accelerating the payment of compensation and assignments allocated Rp94.23 trillion, especially for Energy holding PT Pertamina Rp48.25 trillion, PLN at Rp45.42 trillion, and food operator Perum Bulog at Rp560 billion.
Then, working capital is budgeted at Rp32.65 trillion is channeled to flight carrier PT Garuda Indonesia Tbk (IDX: GIAA) Rp8.5 trillion, plantation company PT Perkebunan Nusantara III Rp4 trillion, PT Krakatau Steel Tbk (IDX: KRAS) up to Rp3 trillion, PT Kereta Api Indonesia Rp3.5 trillion, Perum Bulog Rp13trillion, and housing developer PT Perumnas worth of Rp650 billion.
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