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Govt injects Rp 37t into state enterprises, agencies to boost recovery
The government has disbursed Rp 37.07 trillion (US$2.63 billion) into four state-owned enterprises (SOE) and two state agencies to help revive the virus-battered economy.
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Illustration of make-believe rupiah bills with a coronavirus theme (JP/Mecca Yumna NP)
T
he government has disbursed a total of Rp 37.07 trillion (US$2.63 billion) in state capital injections (PMN) to four state-owned enterprises (SOE) and two state agencies in a bid to help revive the virus-battered economy.
President Joko “Jokowi” Widodo signed several regulations in December to officially disburse the funds. As much as Rp 7.5 trillion is channeled to state-owned construction company PT Hutama Karya, Rp 6 trillion to insurance holding company PT Bahana Pembinaan Usaha Indonesia (BPUI), Rp 2 trillion to pharmaceutical holding company PT Bio Farma and Rp 1.57 trillion to infrastructure financing guarantee company PT Penjaminan Infrastruktur Indonesia.
The government also disbursed Rp 15 trillion to the Indonesia Investment Authority (LPI) and Rp 5 trillion to the Indonesian Export Financing Institution (LPEI).
“Everything is calculated. This is for their working capital,” SOE Ministry expert staff member Arya Sinulingga told The Jakarta Post in a phone interview on Monday.
The government has allocated a total of around Rp 45 trillion in state capital injections for SOEs as part of both the 2020 state budget and the COVID-19 stimulus package. The most recent injections come at a time when the government is speeding up the disbursement of funds.
Other SOEs, such as state-owned PT Indonesia Tourism Development Corporation, plantation holding company PT Perkebunan Nusantara and housing company PT Perumnas also received support.
Arya said the capital injection for Hutama Karya was expected to help create jobs and improve the country’s logistics through toll road projects, including the 2,704-kilometer trans-Sumatra toll road.
