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Ministry seeks additional $1.68b for struggling construction SOEs
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An LRT station is pictured in the Kuningan area of Jakarta in this undated photo. (JP/Wendra Ajistyatama)
T
he State-Owned Enterprises (SOEs) Ministry says it plans to request an additional Rp 25 trillion (US$1.68 billion) from state coffers this year to aid several state-run construction firms, many of which are burdened by debt.
Deputy SOEs Minister Kartika Wirjoatmodjo said the ministry was in the process of requesting the allocation in the 2023 state budget.
He said the ministry was expecting a total of Rp 80 trillion in SOE dividend payouts to the state from 2022, exceeding the Rp 50 trillion target, and that the capital injections could come from the difference.
“There is Rp 30 trillion more than the target, hence our plan to propose an additional Rp 25 trillion for several construction SOEs,” said Kartiko on Wednesday at a hearing of House of Representatives Commission VI overseeing SOEs, as quoted by Kompas.com.
Tiko said the ministry would discuss the proposal further with the House after the lawmakers’ recess from April 14 to May 15.
He claimed the extra funds would support SOEs Minister Erick Thohir’s goal of ensuring that state firms’ annual dividend payments to the government met or exceeded the capital injections they had received by 2024.
According to the Finance Ministry, the government has earmarked Rp 41.3 trillion for SOE financing this year, Rp 28.9 trillion of which has been allocated for state-owned construction firm Hutama Karya for its construction of the Trans-Sumatra Toll Road.
