Tuesday, July 16, 2024

House factions support the 2025 US$2.73 billion state capital injection for SOEs

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Gusty da Costa




All nine factions in Commission VI of the House of Representatives (DPR) have expressed their support for the proposed US$2.73 billion State Capital Injection for State-owned Enterprises for the 2025 fiscal year.

The support was conveyed during the Commission hearing with the Minister of SOEs in Jakarta, on Wednesday, June 10, 2024, presided over by Vice Commission Chairman Sarmuji.

Sarmuji of Golkar Party said that there were many positive considerations based on the performance of the Ministry of SOEs and state-owned companies in recent years that made the State Capital Injection proposal of Rp 44.249 trillion (US$ 2.73 billion) was approved by almost all members of Commission VI. One of them is that the capital injection provided by the state is much smaller than the dividend paid by SOEs to the state.

Haris Turino of the Indonesian Democratic Party of Struggle (PDI-P) cited that the Rp 279.7 trillion (US$17.26 billion) dividend paid by the SOEs to the state for the 2019-2024 period was greater than the realization of state capital injection, which was only Rp 226.1 trillion (US$ 14 billion).

“In addition to contributing dividend to the state, we appreciate the SOEs for their contribution to state revenue through non-tax state revenues (PNBP). Therefore, in support for better SOEs performance in the future, we support the provision of state capital injection to SOEs,” Haris said.

Support was also expressed by the PKB faction, which expects that the 2025 State Capital Injection would further accelerate the performance of state-owned companies.

“We also hope that companies receiving state capital injection could show changes in performance so that the provision of state capital injection is fruitful. Its allocation must be selective and useful for increasing the purchasing power and employment opportunities,” Tommy Kurniawan of PKB said.

Minister of SOEs Erick Thohir clarified that state capital injection no longer relies on foreign debt, but originating from the dividend paid by the SOEs to the state in recent years.

“All this time state capital injection was very dependent on foreign debt, but today we can be sure together that dividends can finance the state capital injection,” Erick told the hearing with the Commission VI.

He said further that all this achievement was a result of SOEs transformation in recent years, while citing that SOEs have deposited around Rp 280 trillion in the past five years, much higher than the capital injection received by SOEs over the past five years of around Rp 212 trillion.

Erick added that the majority of the capital injection, around 89 percent, was used by SOEs to carry out state assignments, another seven percent for restructuring and the remaining four percent for business development.

Gusty da Costa






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