While considering selling bonds to part-fund its financial restructuring mandate, state-sanctioned PT Perusahaan Pengelola Aset (PPA) says this does not represent a policy shift as it remains dependent on the state budget as its main source of funds.
PPA, tasked to restructure ailing state companies and help them get back on their feet, gets funds from the government for its operations.
But, last Wednesday, PPA president director Boyke Mukijat said it was studying the possibility of selling up to Rp 1 trillion of bonds if the government could not provide Rp 1 trillion (US$105 million) in additional funds, as PPA has proposed.
In 2008, the government allocated Rp 1.5 trillion for PPA, which was disbursed in 2009.
For 2009, which would be disbursed early next year, the government has set aside Rp 1 trillion for PPA but the latter is asking for another Rp 1 trillion.
"The 2009 state budget allocation for our use is still not enough to restructure companies.
"If the government does not give an additional budget, we will consider issuing bonds," Boyke said last Wednesday.
However, on Sunday, Boyke said that PPA - despite considering this bond issue - would remain reliant on its annual allocation from the state budget for future funding.
"We are still expecting funds from the government. If the government can provide us with the money, why should we look for other sources?" he said in a phone interview Sunday, adding that a bond issue was only one of the options to secure funds should the government not be able to provide needed additional funds.
Commenting on the use of its budget allocation, Boyke said that the 2008 state budget had been spent on restructuring companies such as airline company PT Merpati Nusantara (Rp 260 billion), paper producer PT Kertas Kraft Aceh (Rp 125 billion), textile producer PT Sandang Nasional (Rp 25 billion) and ship-building firm PT PAL (US$46 million).
Boyke added that now about 16 ailing state companies were in line waiting to be restructured.
These included cement producer PT Semen Kupang, construction company PT Waskita Karya, glass-maker PT Industri Gelas (Iglas), the shipping company PT Djakarta Lloyd, and PT Industri Kapal Indonesia.
PPA is also targeting to restructure Waskita Karya next year by injecting up to Rp 475 billion.
PPA is now also working on five subsidiaries of state oil and gas producer PT Pertamina which were transferred to come under PPA recovery programs in April.
The five are: PT Pelita Air Service, PT Patra Jasa, PT Patra Dok Dumai, PT Usayana and PT Seamless Pipe Indonesia Jaya.
