Public Works and Housing Minister (PUPR) Basuki Hadimuljono asked SOEs Minister Erick Thohir to ensure the state-run firms refrained from doing so, in a letter, according to the PUPR ministry.

“[That money] must be separated from the restructuring problem because not all of these restructuring actions are tied to the state budget,” said PUPR spokesperson Endra Atmawidjaja on Wednesday, as quoted from Kompas.com.

“If the cause of the failure to pay off loan interests or fulfill corporate obligations was the corporate actions, that is uncorrelated to the state budget. Say, for instance, [the default] was caused by the investment outside the infrastructure sector,” he added.

Read also: Govt eyeing limit on state-owned banks’ loans to construction SOEs

The letter included details about Rp 118 trillion (US$7.74 billion) worth of government funded national strategic projects (PSN) currently handled by construction SOEs, Endra added.

Prospects

Every Monday

With exclusive interviews and in-depth coverage of the region's most pressing business issues, "Prospects" is the go-to source for staying ahead of the curve in Indonesia's rapidly evolving business landscape.

View More Newsletter

By registering, you agree with The Jakarta Post's Privacy Policy

Sign Up

Thank You

for signing up our newsletter!

Please check your email for your newsletter subscription.

View More Newsletter

He explained that some of these projects have multiyear contracts, meaning they will get funds from the state budget for more than one fiscal year.

Popular

Furniture exporters decry new quarantine rule

EV industry urges govt to reinstate two-wheeler subsidies as market slows

BRICS shows internal rifts as ministers fall short of joint statement