JAKARTA (TheInsiderStories) – The Indonesian government transferred the property assets with worth of Rp6 trillion (US$425.53 million) to plantation holding, PT Perkebunan Nusantara 3 (PTPN 3). The capital injected through its unit, PT Riset Perkebunan Nusantara, as part of the national economic recovery program.
The spokeswoman, Imelda Alini, explained that these assets include land for experimental gardens, permanent laboratory buildings, installations, tools and machines. The funds, she said, will be used primarily in the fields of research, development, and supply of plantation seeds such as rubber, palm oil, arabica coffee, cocoa, and ecopark.
In 2020, finance ministry has allocated Rp19.7 trillion for five state-owned enterprises (SOEs) through a non-permanent government investment scheme. The support as part of the country’ economic recovery program from the COVID-19 outbreak.
Beside PTPN 3, the capital allocated to the flag carrier, PT Garuda Indonesia Tbk (IDX: GIAA) of Rp8.5 trillion, the railway operator PT Kereta Api Indonesia (KAI) of Rp3.5 trillion, Perum Perumnas Rp700 billion, and PT Krakatau Steel Tbk (IDX: KRAS) Rp3 trillion.
“Non-permanent investment which is a loan that serves as a stimulus for working capital for companies affected by COVID-19 and must be returned to the government along with the interest,” reads the ministry report in the 2020 State Budget.
The government reasoned to injected Perkebunan Nusantara caused more support due to a decrease in the price of crude palm oil, as well as the volume of export demand that would affect the peoples’ economy such as smallholders sugar cane. Moreover, the plantation is one of the sectors included in the labor-intensive.
Previously, Febrio Kacaribu, who heads the ministry’ fiscal policy office, said that state companies on the list would receive capital injections or some form of compensation to help with their financial woes, adding they include companies that are important for the economy.
PTPN 3 was founded in 1958, beginning with the process of taking over Dutch plantation companies by the Indonesian government, known as the nationalization process of foreign plantation companies to become PT Perusahaan Perkebunan Negara. In 1968, the PPN was restructured into several Perusahaan Negara Perkebunan (PNP) units.
In 1974, the company was changed to limited firm and the government merging the plantation businesses based on areas of exploitation and streamlining the organizational structure, starting with a management merger step. In 1994, three other state plantation companies, PTPN 3, PTPN 4, and PTPN 5 were managed into one management.
In September 2012, the SOEs ministry officially appointed PTPN 3 to be the holding company for the plantation holding. While, the unit originated from research institutions that have existed since the colonial era. This institute conducts research on commercial commodities operated by plantation companies, namely oil palm, rubber, cocoa, coffee, tea, quinine and sugar.
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