Coordinating ministry holds meeting on rights issue

Jakarta (ANTARA News) - The Coordinating Ministry for Economic Affairs held a coordination meeting with relevant ministries on Tuesday to discuss capital strengthening of infrastructure state-companies (BUMN infrastuktur) through issuance of a rights issue or preemptive rights (HMETD).

The coordination meeting was attended by a number of ministers, including Public Works and Public Housing Minister Basuki Hadimuljono, State-Owned Enterprises (SOE) Minister Rini Soemarno and Finance Minister Bambang Brodjonegoro.

The SOE Ministry is planning to sell the government stake in four SOEs to the public and use the proceeds to finance development projects.

Preparations are being made in case of four BUMN or SOEs for issuing preemptive rights (HMETD), namely publicly listed companies of PT Pembangunan Perumahan, PT Krakatau Steel, PT Wijaya Karya and PT Jasa Marga.

The Deputy Minister for Restructuring and Business Development of the National Development Planning Ministry, Aloysius Kiik Ro, said the rights issue of the four state companies will be worth about Rp14.3 trillion.

It will consist of Rp9 trillion as state capital participation and Rp5.3 trillion worth of public participation.

"We will maintain the governments position as the major shareholder," Aloysius, who is a former finance director of PT Aneka Tambang, added.

Commission VI on SOE Affairs of the House of Representatives (DPR) had previously endorsed the government proposal to inject capital participation worth Rp44.38 trillion in 20 SOE companies, funds for which will be drawn from the 2016 Revised State Budget (APBN-P 2016).

This state capital participation was also previously endorsed by the DPR. While Rp4 trillion were allocated for PT Wijaya Kara, Rp2.25 trillion for PT Pembangunan Perumahan, Rp1.25 trillion for PT Jasa Marga Rp956.49 billion were allocated for PT Krakatau Steel.(*)