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SOEs Ministry seeks Rp 72t 'booster' for state firms in 2022
The SOEs Ministry has proposed injecting more than Rp 72 trillion into state firms in 2022 to help an ailing public sector, but the Finance Ministry is not yet on board.
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State-Owned Enterprises (SOEs) Minister Erick Thohir (left) speaks during a visit on June 21, 2021 to PT Indofarma's manufacturing facility in West Cikarang, Bekasi, West Java. The state-owned pharmaceutical company started producing ivermectin to meet a sudden rise in demand for the antiparasitic amid Indonesia's "second wave" of COVID-19. (SOEs Ministry/Dhika Permana)
T
he State-Owned Enterprises (SOEs) Ministry has proposed more than Rp 72 trillion (US$4.97 billion) in state capital injections (PMN) for state-owned companies next year, marking an increase of more than 7 percent from this year’s allocation.
Minister Erick Thohir said many SOEs, particularly in the construction sector, were too short on capital to implement government projects and that some even lacked the cash to stay afloat in the pandemic-ravaged economy. Half of the proposed funds would therefore be directed to this sector.
The rest of the funds would go to SOEs in other sectors such as banking, tourism and food and beverage, he said, with the majority engaged in government projects.
“Most of the [proposed] funding is inevitable,” Erick told lawmakers during a House of Representatives hearing on Thursday. He added that the ministry had not yet secured the Finance Ministry’s agreement on the proposed amount, but would continue to press on nevertheless.
According to ministry data, the four construction SOEs to receive the funds are PT Hutama Karya (HK), slated to get the lion’s share of Rp 31 trillion, or 43 percent of the proposed 2022 PMN, followed by PT Waskita Karya with Rp 3 trillion, PT Adhi Karya with Rp 2 trillion and PT Perumnas Rp 2 trillion.
More than Rp 9 trillion of the 2022 PMN would go toward establishing a new state-owned tourism and aviation holding company called PT Aviasi Pariwisata Indonesia, or Aviata for short. The new holding company is to comprise at least seven SOEs in the two sectors, including flag carrier Garuda Indonesia and the Indonesia Tourism Development Corporation (ITDC).
Monopolist electricity company PLN would receive more than Rp 8 trillion next year. Deputy SOEs Minister Pahala Nugraha Mansury told the House that the money would fund several government projects, including a new 22-gigawatt power plant for the national grid to power new priority tourist destinations.
