House rejects capital injection for three state companies

"The reason for the rejection is that the three BUMNs are already able to carry out business restructuring, hence they do not need fund injection," Commission VI Chairman Teguh Juwarno said.
Jakarta (ANTARA News) - The Houses Commission VI overseeing state enterprises has rejected the governments proposal for capital participation (PMN) worth Rp2.5 trillion for three state-owned companies (BUMNs).

"The reason for the rejection is that the three BUMNs are already able to carry out business restructuring, hence they do not need fund injection," Commission VI Chairman Teguh Juwarno stated after a working meeting with Finance Minister Bambang Brodjonegoro at the Parliament building here on Thursday.

The government had proposed capital participation for three BUMNs: Rp1 trillion for PT Perusahaan Perdagangan Indonesia (PPI), Rp1 trillion for port operator PT Pelindo III, and Rp500 billion for PT Bahana PUI.

Teguh noted that the decision to reject the proposal was made after it was discussed in detail by the House Working Committee on BUMNs and was deliberated during a plenary session of Commission VI.

"Pelindo III decided to withdraw from the proposal of receiving the PMN as the companys financial performance continues to improve. The restructuring carried out by the management is able to improve the companys business, so it is developing," Teguh remarked.

PT PUI and PPI also are already able to source funding for their financial needs to finance their business expansion, he pointed out.

Besides rejecting the proposed PMN for the three BUMNs, Commission VI also decided to reduce the PMN provided for PT Hutama Karya from the initial Rp3 trillion to Rp2 trillion.

"The cut will not affect PT Hutama Karyas business expansion plan. Last year (2015), Hutama Karya obtained PMN, and in the coming years, it is likely to receive another PMN as it is assigned by the government to carry out infrastructure development," he affirmed.

On the occasion, the House Commission VI decided to provide PMN for 20 state companies amounting to Rp44.38 trillion through the 2016 revised state budget comprising Rp28.25 trillion in cash PMN and Rp16.13 trillion in non-cash PMN.

With regard to the cash PMN, PT Hutama Karya, logistics firm Perum Bulog, and PT Angkasa Pura II each received Rp2 trillion; PT Barata Indonesia, Rp500 billion; PT Wijaya Karya Tbk, Rp4 trillion; and PT Pembangunan Perumahan, Rp2.25 trillion.

Perum Perumnas received Rp250 billion; PT INKA, Rp1 trillion; PT PLN, Rp23.5 trillion, comprising Rp10 trillion in cash PMN and Rp13.5 trillion in non-cash PMN; PT Jasa Marga Tbk, Rp1.25 trillion; and PT Askrindo, PT Perum Jamkrindo, and Pertani each received Rp500 billion.

With regard to non-cash PMN, PT Perikanan Nusantara obtained Rp29.4 billion; PT RNI, Rp692.53 billion; PT Pelni, Rp564.81 billion; Perum Perumnas, Rp235 billion; PT Krakatau Steel, Rp956.49 billion; PT Amarta Karya, Rp92.15 billion; PTPN I, Rp25.05 billion; and PTPN VIII, Rp32.77 billion.(*)

Comments