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View all search resultsGovt significantly reduces state capital injections for SOEs
State-owned enterprises will receive about a third of last year's state capital injections this year due to the establishment of state asset fund Danantara.
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Finance Minister Purbaya Yudhi Sadewa's face is displayed on a screen during a speech on Dec. 3 at the Indonesia Stock Exchange (IDX) building in Jakarta. (JP/Deni Ghifari)
T
he Finance Ministry has significantly cut state capital injections (PMN) for state-owned enterprises (SOEs) as newly established state asset fund Danantara itself manages SOE dividends that far outweigh past capital injections.
Finance Minister Purbaya Yudhi Sadewa revealed on Monday in a hearing with House of Representatives Commission XI, which oversees financial affairs, that the PMN this year would total just Rp 11.5 trillion (US$689.6 million), less than a third of last year’s Rp 35.2 trillion.
Asked by reporters whether SOEs would receive any injections in 2026, Purbaya explained that enterprises overseen by the Finance Ministry, such as PT Sarana Multigriya Finansial (SMF), a fully state-owned housing finance provider, “will still receive it”.
Whether or not the SOEs under Danantara’s management would receive any PMN “depends on the situation”, said Purbaya, without elaborating.
PMN was a key source of SOE financing under past administrations, who relied on the funds for the execution of many projects. President Prabowo Subianto’s administration has abandoned that practice in the course of overhauling SOE management through the creation of Danantara.
SOE dividends no longer go to the government as a substantial source of state revenue but instead remain within Danantara, which can use the funds, expected to exceed Rp 80 trillion this year, for reinvestment, be it in portfolio assets or as loans or capital for the SOEs.
PMN injections amounted to as much as Rp 71 trillion in 2021 and Rp 59 trillion the following year, a large chunk of which was directed toward infrastructure projects.
