State-Owned Enterprises Ministry (tempo.co)

State-owned enterprises watchdog (BUMN Watch) coordinator Naldi Nazar Haroen has called on the State-Owned Enterprises Ministry to be more transparent about the use of state capital injections into state-owned enterprises.

House of Representatives'€™ Commission VI overseeing state-owned enterprises has approved the allocation of Rp 34.318 trillion (US$2.49 million) in state capital injections into 23 state-owned companies in the 2016 state budget, a decrease from Rp 64.88 trillion in the 2015 state budget.

The government has allocated more than Rp 100 trillion of capital injections into state-owned enterprises over the last two years.

"The supervision has not been effective or transparent," Naldi told thejakartapost.com on Wednesday.

He acknowledged that there had been no clear audit related to the use of state capital injections. "If a company suffers losses, would they be categorized as state losses or business losses?" he asked.

Earlier, deputy Commission VI chairman Dodi Reza Alex Noerdin said that state capital injections in 2016 would focus on the development of infrastructure and energy sovereignty, food sovereignty and the sustainability of small loans and small and medium enterprises (SMEs).

State-own electricity company PLN gained the greatest share of share capital injections, Rp 10 trillion, which was allocated to electrification of remote areas and construction of transmission, in addition to power plant projects.

Other state-owned companies set to receive significant amounts of capital injection include construction companies Wijaya Karya (Rp 4 trillion), Hutama Karya (Rp 3 trillion) and PT Pembangunan (Rp 2.25 trillion). (bbn)

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