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Erick proposes Rp 44t in state capital injection for SOEs next year
The SOEs minister has proposed state capital injection totaling just over US$2.7 billion for next year, the bulk of which is intended to save toll road projects helmed by heavily indebted state-owned developers.
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State-Owned Enterprises (SOEs) Minister Erick Thohir attends a working committee meeting with House of Representatives Commission VI on Jan. 29, 2020 at the Senayan legislative complex in Jakarta. (JP/Dhoni Setiawan)
T
he State-Owned Enterprises (SOEs) Minister Erick Thohir has proposed a state capital injection (PMN) totaling Rp 44.25 trillion (US$2.71 billion) for SOEs next year, most of which is earmarked for construction companies.
Members of the House of Representatives Commission VI overseeing trade, industry and SOEs noted they had “acknowledged” the proposal, which Erick presented during a meeting on Friday, but that its approval would be subject to future meetings.
Lawmakers also noted that the final figure would require the Finance Ministry’s approval, discussions on which would take place later in the second half of this year.
“We hope that we can get the maximum amount of this investment reserve, although the Finance Ministry has indicated that it may not approve,” Erick told Friday’ meeting with House Commission VI.
Construction SOEs account for Rp 20.52 trillion or 46.37 percent of the proposed allotment, with PT Hutama Karya expected to get the lion’s share of Rp 13.8 trillion for the second and third phase of the Trans-Sumatra Toll Road project.
Fellow state-owned construction firms PT Adhi Karya and PT Wijaya Karya (WIKA) are also slated to each receive some Rp 2 trillion in PMN, with the former planning to use it to develop the Yogyakarta-Bawen and Solo-Yogyakarta toll roads and the latter to help fund its business restructuring.
Read also: Govt to conclude Waskita, Hutama Karya consolidation in September
