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Jakarta Post

SOEs find last resort for financing in capital market

  • Anton Hermansyah

    The Jakarta Post

PREMIUM
Jakarta   /   Mon, October 9, 2017   /  07:45 am
The Jakarta Post Image
State-Owned Enterprises (SOE) Rini Soemarno (center) talks with Finance Deputy Minister Mardiasmo (right) and State Logistics Agency (Bulog) president director Djarot Kusumayakti (left) prior to a limited Cabinet meeting at the Presidential Office in Jakarta on June 13.(Antara/Rosa Panggabean)

Amid slower expansion in the banking industry, State-Owned Enterprises (SOE) Minister Rini Soemarno has pushed SOEs to raise funds from the capital market to oil the country’s ambition for infrastructure, despite Finance Minister Sri Mulyani Indrawati’s warning over state power firm PLN’s excessive debts. PLN, the country’s most indebted SOE, is maintaining its plan to issue Rp 2.5 trillion (US$185 million) in bonds in October, part of a group of SOEs set to raise a total of Rp 31.87 trillion in proceeds, consisting of Rp 22.1 trillion in bonds and Rp 9.77 trillion in equity issuances, in the remaining months of the year. Rini said the capital market could support government programs such as toll-road development and the ambitious 35-gigawatt electricity program. From September 2014 to September this year, SOEs built 560-kilometers of toll roads and saw 46...