House approves capital injection for 20 state companies

Jakarta (ANTARA News) - Commission VI of the House of Representatives has decided to approve state capital participation (PMN) for 20 state companies totaling Rp44.38 trillion from the amended 2016 state budget .

The PMN includes Rp28.25 trillion in cash and Rp16.13 trillion in non cash, commission VI chairman Teguh Juwarno said after a working meeting with Finance Minister Bambang Brodjonegoro here on Thursday.

Power utility company PLN is to received the largest PMN at Rp23.5 trillion with construction company PT Wijaaya Karya to received the second largest of Rp4 trillion for followed by Housing construction company PT Pembangunan Perumahan Rp2.25 trillion.

Other companies to receive PMN in cash include PT Hutama Karya, Perum Bulog and PT Angkasa Pura II each to receive Rp2 trillion , PT Barata Indonesia to receive Rp500 billion, Perum Perumnas Rp250 billion,PT INKA Rp1 trillion, PT Askrindo Rp500 billion , PT Perum Jamkrindo Rp500 billion, PT Jasa Marga Tbk Rp1.25 trillion, Pertani Rp500 billion.

Companies to have PMN in non cash include PT Perikanan Nusantara 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.

The commission rejected PMN proposal for three other state companies - trade company PT Perusahaan Perdagangan Indonesia Rp1 trillion, finance company PT Bahana PUI Rp500 billion, and port op0erator PT Pelindo III Rp1 trillion.

Teguh cas PMN is prioritized for infrastructure, energy security, and food security projects and for small and medium enterprise development.

Non cash PMN is to be given after being audited by the Supreme Audit Agency (BPK).

The Finance Minister said the government approves the proposal for capital injections submitted by Minister for State Enterprises Rini M. Soemarno.

He said the PMN is needed to improve the performance of the state enterprises.

"Unlike budget for other ministries and agencies , capital injection for state companies could increase the leverage ratio and return to strengthen their capital," he said.

Rini was represented by the finance minister at the meeting as she is boycotted by the House of Representatives for allegedly defending a former leader of state company charged with corruption. (*)