JAKARTA (TheInsiderStories) - Indonesian government targeting to raises the dividend payment from state-run companies around Rp26.13 trillion (US$1.76 billion), the 2021 State Budget data showed. Next year dividend comes from banking sector worth of Rp11.9 trillion and non-banking Rp14.2 trillion.
State own enterprises minister, Erick Thohir, asserted, “Like it or not, SOE’ situation is the same with most of private companies. Around 90 percent are affected, only 10 percent are running normally.”
In 2019, state lender, PT Bank Rakyat Indonesia Tbk (IDX: BBRI) lead the list of the 10 largest SOEs that have paid dividends to the government, amounting to Rp9.25 trillion. Then, PT Telkom Indonesia Tbk (IDX: TLKM) Rp8.45 trillion, PT Pertamina Rp7.95 trillion, PT Bank Mandiri Tbk (IDX: BMRI) Rp6.75 trillion, and PT Perusahaan Listrik Negara (PLN) Rp4.00 trillion
Then, PT Bank Negara Indonesia Tbk (IDX: BBNI) Rp2.25 trillion, PT Pegadaian Rp1.38 trillion, PT Indonesia Asahan Aluminum Rp1.08 trillion, PT Pupuk Indonesia Rp1.04 trillion, and PT Jasa Raharja Rp891.12 billion.
Last year, the government pocketed dividend payment from the SOES Rp65 trillion. In 2021, the country also plans to injects new capital to the eight state companies amounting to Rp37.4 trillion.
Based on the draft, the eight SOEs that received the fresh investment are PT Sarana Multigriya Finansial Rp2.3 trillion, PT Hutama Karya Rp6.2 trillion, PLN Rp5 trillion, PT Bahana Pembagunan Usaha Indonesia Rp20 trillion, PT PAL Indonesia Rp1.3 trillion, PT Pelabuhan Indonesia III Rp1.2 trillion, PT Kawasan Industri Wijayakusuma Rp1 trillion, and PT Indonesia Tourism Development worth of Rp500 billion.
The companies will carry out various programs such as the infrastructure development, tourism, electricity, insurance, port, and industrial estate. According to finance minister, Sri Mulyani Indrawati on August 14, the targets took into account the impact of COVID-19 on the SOEs performances.
She hopes that the decrease in the state-run firm’ profit can be compensated by the projected increase in non-tax state revenues for natural resources and oil and gas. The government projects that next year’ commodity price movements will move steadily.
Non-tax revenues from these sector is pegged at Rp72.4 trillion in 2021. The other non-tax revenues target reaches Rp107 trillion. In more detail, non-tax payments from public service agencies in 2021 are targeted to be valued at IDR 58.8 trillion. In total, the non-tax revenues targets is set at Rp293.5 trillion or a 0.2 percent decrease from this year’ outlook of Rp294.1 trillion.
In the proposed 2021 State Budget to parliament, President Joko Widodo projected next year’ deficit around 5.5 percent of gross domestic products (GDP) or Rp971.2 trillion to cover the impact of the COVID-19 in Indonesia. The deficit widens then initial planned around 5.2 percent of GDP and lower than this year’ targets about 6.34 percent of GDP or Rp1,039.2 trillion.
“The pandemic has become health and humanitarian crises in this century affecting all sectors of human lives. Starting from health issues, the impacts of the COVID-19 pandemic have spread to social, economic and even financial sectors. Many countries have rolled out extraordinary mitigation measures particularly through fiscal stimulus,” he told member of parliament last week.
Widodo said, the widening of the deficit is carried out by taking into account the need for state spending to deal with health issues and to rebuild the economy amid the declining state income. The government prepared health budget Rp169.7 trillion or equivalent to 6.2 percent of the GDP, geared towards an increase in and equal distribution of supply as well as facilitation for the procurement of vaccine.
He continued, the national economic recovery will be carried along with the reform in various sectors. The policy of deficit relaxation that exceeds 3 percent of GDP in 2021, he adds, is still necessary by still maintaining fiscal prudence, credibility, and sustainability. He revealed, the 2021 State Budget bill is drawn up to speeding up national economic recovery due to the COVID-19 and encouraging structural reform to increase productivity, innovation, and economic competitiveness. It also speeding up economic transformation towards digital era and capitalizing and anticipating demographic changes.
In 2021, the government set the macroeconomic assumptions as follows, the economic growth 4.5 to 5.5 percent, inflation at 3.0 percent, Indonesian Rupiah 14,600 against the US Dollar, 10-year government securities interest rate at 7.29 percent, Indonesian Crude Price $45 per barrel, Oil and gas lifting is estimated to reach an equivalent of 705 thousand barrels and 1 million thousand barrels of oil per day, respectively.
The budget deficit of 2021 will be financed by making of secured financing sources that are prudently managed. The deficit financing, said Widodo, will be carried out through cooperation with monetary authority, while upholding the principles of fiscal discipline and monetary policy discipline as well as maintaining the integrity, credibility, and market trust of the government bond.
US$1: Rp14,800
Written by Editorial Staff, Email: theinsiderstories@gmail.com
