TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Ministry plans to beef up SOEs with Rp73t in cash injections, rights offers
The State-Owned Enterprises Ministry plans to raise money for state-owned firms through multiple rights issues in the second half of this year, followed by more than Rp 73 trillion worth of state capital injections next year.
Change Size
A worker walks in front of a Garuda Indonesia aircraft parked at Garuda Maintenance Facility (GMF) AeroAsia at Soekarno-Hatta International Airport near Jakarta on Jan. 21. (Reuters/Willy Kurniawan)
T
he State-Owned Enterprises (SOEs) Ministry plans to raise money for state-owned firms through multiple rights issues in the second half of this year, followed by more than Rp 73 trillion worth of state capital injections next year.
Garuda Indonesia is set to raise funds via two rights issues to support its debt restructuring effort and new business plan. First, it will absorb Rp 7.5 trillion in state capital injections, which are to be paid out once the airline concludes its debt restructuring process – slated for June 17.
The national flag carrier plans to then raise funds from new investors in the fourth quarter of this year, with the government to hold its stake at 51 percent.
State-owned cement holding company SIG, construction SOEs Waskita Karya and Adhi Karya, state-owned lender Bank BTN and state-owned steel company Krakatau Steel plan to follow in Garuda’s footsteps through rights issues of their own to maintain ownership stakes after receiving this year's state capital injections, as well as to pay off debt and fund business plans.
“We have quite a lot to do in the second half. We hope the rights issue will run smoothly. We hope the capital market can absorb the rights issue well,” Deputy SOEs Minister Kartika Wirjoatmodjo told lawmakers on Tuesday during a meeting with House Commission VI overseeing SOEs, trade and investment.
Read also: Garuda Indonesia requests third extension of restructuring period
The COVID-19 pandemic has hit many SOEs hard, with some struggling to meet their debt obligations and striving to renegotiate with lenders and creditors.
