JAKARTA (TheInsiderStories) – The contentious rhetoric about the increasing of state-owned enterprises‘ (SOE) debt has been broadly discussed among observers and economists. Indeed, the debt of the red-plate companies has continued to swell.
The main factor is infrastructure development debt which is from the Joko Widodo government’s strategic program. As we know, the total SOEs debt in the non-financial sector has reached Rp1,980 trillion (US$136.55 billion).
While banking activities, assets and liabilities or third party funds recorded Rp3,000 trillion. So, the polemic about the swelling of SOEs debt which reached Rp5,000 trillion is true because the valuation has been calculated by the amount of banking activity.
Based on the report by SOEs ministry, in the third quarter (3Q) of 2018 the total debt of the companies worth of Rp5,271 trillion. While, the assets reached Rp7,718 trillion. The equity of all SOEs stands at Rp2,414 trillion. The net profit until the 3Q 2018 was only Rp79 trillion.
However, up to 3Q 2018 the company itself has contributed almost Rp380 trillion to the state treasury which consists of dividends, taxes, and non-tax state revenues.
There are several SOEs which carry the largest debt burden, including the financial sector, where the debt reaches Rp3,311 trillion, 74 percent of which are deposits. The debt in the financial sector is actually public money stored in banks which is part of the banking business, so it is necessary to distinguish between deposits that are public funds and bilateral debt.
Meanwhile, the non-financial sector reached Rp1,960 trillion, of which 26 percent were state-owned electricity sector debt and 27 percent were oil and gas sector.
It is still considered safe because SOEs are still able to pay. It can be seen from the amount of the companies assets. But next year, there are several SOEs that have to pay debts that will be due, so it is estimated that the company’s cash flow burden will be disrupted.
The ten SOE’s with the largest debt includes PT Bank Rakyat Indonesia Tbk (IDX: BBRI) Rp1.008 trillion, PT Bank Mandiri Tbk (IDX: BMRI) Rp997 trillion, PT Bank Negara Indonesia Tbk (IDX: BBNI) Rp660 trillion, PT Perusahaan Listrik Negara Rp543 trillion, PT Pertamina Rp522 trillion.
Then, PT Bank Tabunagn Negara Tbk (IDX: BBTN) Rp249 trillion, PT Taspen is Rp222 trillion, PT Waskita Karya Tbk (IDX: WSKT( is Rp102 trillion, PT Telkom Indoensia Tbk (IDX: TLKM) is Rp99 trillion, and PT Pupuk Indonesia is Rp76 trillion.
It is crucial for the government and stakeholders to monitor the financial performance of SOE’s because even though SOEs are agents of development, they must still be monitored so that the company balance sheet can be positive.
The balance sheets of the state companies have been criticizing by various parties. The spotlight is on the swell debt of the SOEs caused by the government infrastructure development, but the return was still obtained for a long time. Problems occur when projects are delayed or when they require time to generate revenue.
Written by Daniel Deha, Email: email@example.com