Tuesday, July 16, 2024

Sri Mulyani proposes Rp6.1 trillion state capital injection for five SOEs

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Minister of Finance Sri Mulyani Indrawati has proposed a state capital injection (PMN) totaling Rp6.1 trillion for five state-owned enterprises (SOEs) this year, representing 44.85 percent of the total PMN requested by the Ministry of State-Owned Enterprises (SOEs) amounting to Rp13.6 trillion (US$833 million).

The five SOEs are PT Kereta Api Indonesia, PT Hutama Karya, PT Industri Kereta Api, PT Pelayaran Nasional Indonesia, and the Land Bank Agency.

Sri Mulyani said that the PMN proposal aligns with Government Regulation No. 76/2023 regarding the details of the State Budget for the 2024 Fiscal Year.

The total PMN allocated to these five SOEs amounts to Rp5.46 trillion, while Rp635 billion from the state budget is set aside for guarantee obligations.

“We allocate for guarantee obligations because the government often provides guarantees. We reserve funds in case these obligations need to be fulfilled,” Sri Mulyani told a hearing with Commission XI of the House of Representatives on Monday, July 1, 2024.

Director General of State Assets at the Ministry of Finance, Rionald Silaban, allocated Rp2 trillion in PMN for PT KAI this year. These funds will be used for capital expenditure on new train sets and retrofitting the Greater Jakarta (Jabodetabek) Commuter Trains.

PT INKA received a PMN allocation of Rp965 billion, more than 50 percent lower than what the Ministry of State-Owned Enterprises proposed. This PMN will be used for expanding the stainless steel train production line in Banyuwangi, East Java.

Meanwhile, Hutama Karya received a PMN allocation of Rp1 trillion for the completion of Phase II of the Trans Sumatra Toll Road, the Palembang-Betung section. The Palembang-Betung Toll Road is part of the Kayu Agung-Palembang-Betung Toll Road, or Kapalbetung, which spans 112 kilometers.

The Toll Road Regulatory Agency noted that the Kapalbetung Toll Road has been operational for 42 kilometers up to Palembang. The subsequent construction section up to Betung, spanning 59.29 kilometers, is currently 79.1 percent complete as of June 2024.

The Ministry of State-Owned Enterprises previously proposed a PMN of Rp 1.6 trillion for the completion of the Kapalbetung Toll Road this year. Thus, the Ministry of Finance has proposed 62 percent of the PMN requirement for Hutama Karya as submitted by the Ministry of State-Owned Enterprises.

Additionally, Rionald Silaban said that Pelni will receive a PMN allocation of Rp 500 billion for the purchase of a new ship.

“This purchase is for the rejuvenation of Pelni’s fleet,” he said.

Lastly, a PMN of Rp1 trillion was allocated for the Land Bank Agency. The Land Bank Agency is not among the seven SOEs planned to receive PMN totaling Rp13.6 trillion this year.

The seven SOEs proposed by the Ministry of State-Owned Enterprises to receive PMN this year are as follows:

  • PT KAI: Rp2 trillion
  • PT Hutama Karya: Rp1.6 trillion
  • PT Reasuransi Indonesia Utama: Rp1 trillion
  • PT Pelni: Rp3 trillion
  • PT INKA: Rp2 trillion
  • PT Rajawali Nusantara Indonesia: Rp1 trillion
  • Indonesia Financial Group: Rp3 trillion
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