SOEs expects to grab $23b from repatriated funds

JAKARTA (TheInsiderStories) - State-owned enterprises (SOEs) expect to grab Rp300 trillion (US$22.90 billion) from repatriated funds by offering financial investment instruments and infrastructure projects, said senior official on Wednesday.

State owned banks, namely PT Bank Mandiri Tbk (IDX: BMRI), PT Bank Negara Indonesia Tbk (IDX: BBNI) and PT Bank Rakyat Indonesia Tbk (IDX: BBRI) have been picked as a designated banks for the repatriated funds.

Asset management companies, namely PT Mandiri Sekuritas, PT Bahana Securities, PT Danareksa Sekuritas and PT BNI Securities, have also been selected as gateway for repatriated funds under tax amnesty program.

The SOE Minister Rini Soemarno explained, around 25 SOEs are ready to offer various investment products like deposits, ownerships in the projects and stocks, global and domestic bonds , asset back to securities, limited mutual funds and other instruments.

“So, we have several schemes. We offer the repatriated funds collected by the investment managers under the SOEs securities houses before investing the funds in the financial instruments or projects,” She told reporters after meeting with the Coordinating Minister for the Economy Darmin Nasution.

Rini said, several projects have been done and are ready to become alternative investments choices, such as Malang - Pandaan toll road in East Java, initial public offering of subsidiaries of SOEs like PT HK Realty owned by toll operator PT Hutama Karya and insurance firm PT Tugu Pramata owned by the energy firm PT Pertamina, as well as agriculture projects under plantation producer PT Perkebunan Nusantara.

“Pertamina has several big projects such as the expansion of the refinery in Balikpapan, fuel storage terminals in several places that need huge investment. Other company like PT Perusahaan Listrik Negara is also looking for investors for the development of the 35,000 megawatts power plant projects,” Rini said.

To reach the targets, she expects Financial Services Agency (OJK) to simplify the procedure and related requirements for the programs.

Previously, President Joko Widodo said that the government is preparing several SOEs to go public and issue bonds to take advantage of the capital inflows from repatriated funds.

Some SOEs have expressed their interest to issue bonds, namely PT Waskita Karya Tbk (IDX: WSKT) which plans to issue bonds worth Rp 5 trillion, PT PP Tbk (IDX: PTPP) Rp2 trillion, PT Jasa Marga Tbk (IDX: JSMR) Rp3 trillion, BBRI up to Rp20 trillion in two stages, BMRI Rp10 trillion and PT Bank Tabungan Negara Tbk (IDX: BBTN) Rp3 trillion.

According to the government’s figures, SOEs’ total assets amounted to Rp 440 trillion (US$33.7 billion), which could be maximized by listing on the stock market. (*)