The Jakarta Post
State-owned airport operator PT Angkasa Pura (AP) II, which manages most airports in the western part of Indonesia, has received a state capital injection (PMN) of Rp 881 billion (US$60.3 million) to improve the company’s capacity and capital structure.
President Joko “Jokowi” Widodo issued Government Regulation No. 38/2020 regarding the PMN for AP II on July 16, with the capital injection coming in the form of state property transfers, not an allocation from the state budget (APBN).
“To improve AP II’s capital structure and capacity, the government needs to provide additional PMN for AP II, in the form of state properties under the Transportation Ministry,” the document reads.
The government transferred various properties to the company, including a runway worth Rp 528 billion that was constructed by the Transportation Ministry’s airport directorate working unit at Medan’s Kualanamu International Airport in North Sumatra and a parallel runway worth Rp 10 billion built by the directorate at Pontianak’s Supadio Airport in West Kalimantan.
In May, AP II announced that it had reduced its capital expenditure this year to Rp 1.4 trillion, which is less than 20 percent of the initially earmarked Rp 7.8 trillion, following the sharp drop in aircraft and passenger traffic at its airports due to the COVID-19 pandemic, which has taken a toll on the operator’s revenue.
The airport operator has also taken cost-cutting measures, including suspending the Soekarno-Hatta Skytrain service, cutting electricity use by 46 percent and slashing water use by 60 percent at Angkasa Pura II airports across Indonesia.
With the finances of state-owned enterprises (SOEs) hit hard by the pandemic, the House of Representatives has approved a plan to channel Rp 151.1 trillion into the companies as part of the government’s national economic recovery (PEN) program.
The funds, which are to be less than the government’s initial projection of Rp 152 trillion, will be disbursed to 16 state-owned firms using three schemes, namely state capital injections (PMN), government debt payments and government loans.