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House drafts bill to put Finance Ministry in charge of SOE dividends
The new bill being drafted by House Commission XI aims to place the distribution of SOEs' earnings under the Financial Ministry, which is already responsible for approving state capital injections.
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Finance Minister Sri Mulyani (left), accompanied by State-Owned Enterprises Minister Erick Thohir, addresses a press briefing statement on June 24, 2020, at the Bina Graha presidential office in Jakarta. (Antara/Sigid Kurniawan/POOL)
H
ouse of Representatives Commission XI, overseeing finance, monetary and financial institutions, is drafting a bill to allow the Finance Ministry to retain control over dividend payments from state-owned enterprises (SOEs).
The commission aims to designate the so-called Separate State Assets Bill, which is to include stipulations on the dividends and assets of SOEs, a priority for completion next year.
Commission XI deputy chair Fauzi Amro said lawmakers wanted the finance minister to be fully responsible for managing SOE dividends, since the minister was also responsible for approving state capital injections (PMN) for state-owned enterprises.
Putting the fiscal chief in charge of the distribution of SOEs’ earnings could therefore directly impact public welfare through funding infrastructure projects and other government initiatives, Fauzi said.
“To make it concrete, we will [prepare] the academic draft. We hope this priority bill can be finalized this year, or next year at the latest,” he said on Tuesday, as quoted by Bisnis.com.
Last year, SOEs contributed Rp 81.2 trillion (US$5.14 billion) in dividends to the state budget, double the previous year’s amount, with BRI, Pertamina and Bank Mandiri generating the majority of profits.
Dividends from SOEs are currently paid into the state budget as nontax revenue, as stipulated in Finance Minister Regulation No. 179/2022, and are among the major sources of nontax revenue, only after the income derived from natural resources.
