JAKARTA (TheInsiderStories) – President Joko Widodo injected fresh capital into PT Perusahaan Pengelola Aset (PPA) by transferring shares of PT Indosat Ooredoo Tbk (IDX: ISAT), PT Bank KB Bukopin Tbk (IDX: BBKP), PT Socfin Indonesia, PT Prasadha Pamunah Limbah Industri, and PT Kawaasan Industri Lampung. The decision showed by the Government Regulation Number 51 Year 2021 has been signed last month.
Initially, the state-owned firm proposed new capital injection of Rp5 trillion (US$349.65 million) to support labor-intensive corporate financing. Based on Article 2, the central government transferred 776.62 million Series B shares of Indosat Currently, the government hold one Series A shares and 14.29 percent of Indosat’ Series B shares, while Ooredoo Asia at 65 percent.
Then transferred 50 shares of Prasadha Pamunah, 4.74 million Series A and 1.03 million Series B shares of Bank BK Bukopin, Lampung Industrial Estate 1,762 unit, and Series B shares Socfin Indonesia together with 2,999 Series C shares and 2,000 Series D shares to the investment company.
Since last year, Widodo’ administration has injected state-owned enterprises to support the national economic recovery program (ERP). In May 2020, Widodo has signed a Government Regulation Number 23 of 2020 regarding ERP. The regulation written that the government can carry out capital injection to state-owned enterprises (SOEs), placement of the funds, government investment, and guarantees for the program.
in Article 8, its written that the capital injection is given in order to improve the capital structure of SOEs and subsidiaries affected by COVID-19. The funds can also be given to increase the business capacity of SOEs and subsidiaries, including to carry out special assignments in the implementation of the ERP Program.
In total, funds disbursed to SOEs under the ERP Program reached Rp149.15 trillion during 2020, consisting of the acceleration of compensation and assignment payments also working capital bailouts. PPA has a duty from SOEs minister, Erick Thohir, to restructure 21 state firm, such as PT Industri Gelas, PT Pembangunan Armada Niaga Nasional (PANN), PT Merpati Nusantara Airlines, PT Kertas Kraft Aceh, PT Istaka Karya, PT Kertas Leces, PT Djakarta Lloyd, PT Indah Karya, PT Doc and Shipping Surabaya, PT Industri Sandang Nusantara, and PT Barata Indonesia.
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