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PLN to draw most state capital injection this year
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State-owned electricity firm PLN signage is seen above the company's building in Jakarta. (Antara/Zabur Karuru)
H
ouse of Representative Commission VI has approved Rp 50.98 trillion (US$3.82 billion) in capital injection (PMN) for state-owned enterprises (SOEs), with almost half of it to be absorbed by state-owned electricity company PLN.
According to the final draft of the revised 2016 state budget, PLN will receive Rp 23.56 trillion, or 46 percent of the PMN allocation, after Commission VI –overseeing trade and industry—approved an additional injection of Rp 13.56 trillion.
"It must be passed to a plenary meeting that will be held on Tuesday. We are optimistic the additional injection will be approved. Hopefully there will be no objections from the factions," Finance Ministry director general Dedy Syarif Usman told thejakartapost.com on Thursday in Jakarta.
The PMN includes Rp 2.57 trillion in non-cash injection that can be processed subject to Supreme Audit Agency (BPK) approval. Three of 23 PMNs were canceled, including for Perusahaan Perdagangan Indonesia, Pelindo III and Bahana Pembinaan Usaha Indonesia.
Commission VI chairman Teguh Juwarno said the three companies had exhibited strong performance and were not in urgent need for PMN. They are believed to be able to obtain external funding to finance their expansions.
"After reviewing the financial reports, we assessed that they would be able to obtain capital injection by using their assets and equity," he said, adding that PMNs were prioritized for programs that would directly boost the economy and people's welfare. (ags)
