Indonesian Govt Injects US$1.26B to Seven SOEs

Indonesian government will injected fresh capital to seven state companies with total amount Rp17.73 trillion (US$1.26 billion) - Photo by Finance Ministry Office

JAKARTA (TheInsiderStories) – Indonesian government will injected fresh capital to seven state companies with total amount Rp17.73 trillion (US$1.26 billion), said finance minister. At the hearing with parliament on Monday (12/02), PT Perusahaan Listrik Negara (PLN) will become the largest recipient worth of Rp5 trillion.

She explained, the funds will be used to complete the construction of electricity projects across the nation. Then, financing firm PT Pengembangan Armada Niaga Nasional  Rp3.76 trillion to convert subsidiary loan agreement become an equity.

“This is to develop the national maritime fleet and supporting the government’ goal in realizing the world’ maritime axis,” she said.

Other state companies are toll road operator PT Hutama Karya with amount of Rp3.5 trillion, financing provider PT Sarana Multigriya Financial Rp2.5 trillion, lender PT Permodalan Nasional Madani Rp1 trillion, energy company PT Geo Dipa Energi Rp700 billion, and PT Bahana Pembinaan Usaha ndonesia Rp270 billion.

In addition, the government will also allocate Rp1 trillion to strengthen the current account balance which has been a structural problem in Indonesia. At the other meeting, state own enterprises (SOEs) minister, Erick Thohir said, over the past four years, the government has injected capital of Rp105.5 trillion to SOEs.

Of these funds, there are two companies absorbing the most, PLN Rp35.1 trillion and Hutama Karya of Rp16.1 trillion. This year, the power producer required new capital injection Rp6.5 trillion with Rp2.5 trillion has been injected. PLN used the fund to build electricity installations and Hutama Karya to support the construction of the Trans Sumatra toll road, he adds.

The state capital investment budget is included in investment financing. Investment financing is aimed at increasing economic growth and supporting various Government policies, such as accelerating infrastructure development, encouraging national export programs, improving the quality of human resources, improving people’s welfare through cooperative empowerment, and enhancing Indonesia’s participation in the international level.

US$1: Rp14,000

Written by Staff Editor, Email: theinsiderstories@gmail.com