"The SOE ministry has asked the PLN to take part in the efforts to absorb the repatriated funds that will flow in once the Tax Amnesty Law is implemented. We (at the PLN and other SOE companies) have been asked to bring together the finance directors to discuss the matter with Mr Aloysius (the deputy minister of SOE for restructuring and business development)," stated Sofyan.
However, Sofyan did not disclose the value of the bonds, saying that would be known only after the "kick off" by the SOE ministry. He also did not say when these would be issued.
"We have not taken a decision yet. This is because PLN financing could also be obtained through deposits and equity, including short term loans," he noted, adding the PLN must move fast to take advantage of the repatriated funds.
He clarified that the PLN would issue the bonds before the Tax Amnesty period comes to an end on March 31, 2017. The PLN has many power generating projects, and a decision has to be made about which ones can be financed through loans and which ones through bond sale yields.
The government is planning to mobilize the repatriated funds for financing infrastructure and energy projects.
Chief Economic Minister Darmin Nasution had previously underlined that state-owned companies could be involved in utilizing these funds, and the government would have to choose the best ones for the purpose.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
