Rini on business development of state companies

Rini on business development of state companies

Minister Rini Soemarno. (ANTARA/Widodo S. Jusuf/P003)

Most important is to prevent double investment such as between Pertamina and PGN."
Jakarta (ANTARA News) - Minister for State Enterprises (BUMN) Rini Soemarno called a meeting with the press on Monday speaking in general about business developments of state companies ranging from program to build new power plants with a total capacity of 35,000 megawatts until 2019.

She also speaking of the plan to form holding companies for BUMNs and accommodation of repatriated funds as a result of the tax amnesty policy and acceleration of infrastructure development.

"This meeting is intended to give information for the public about the programs already completed and yet to be carried out and targets to be reached by BUMNs," Rini said.

A number of BUMN leaders were present at the meeting including the president directors of electricity company PLN, banks including BRI, BNI and Bank Mandiri , construction companies including Waskita Karya and Wijaya Karya, airport operator Angkasa Pura II and railway company (KAI).

Rini said the issue which has attracted wide public attention lately is how BUMN to make use of repatriated funds expected to flow into the country as a result of the tax amnesty policy.

"At least 26 BUMNs are ready to use up to Rp250 trillion of the funds," she said.

She also said state companies including banks, infrastructure companies, energy companies, plantation companies and other state companies operating in other areas are encouraged to use the repatriated fund.

"Instruments that could be used by the BUMNs could be bonds, initial public offering, asset securitization, projects being built and fund placement in state banks," she said.

Rini said she took part in launching socialization of the tax amnesty program with President Joko Widodo already held in Surabaya and Medan to be continued in a number of other large cities in the country.

The minister also spoke about progress made in the construction of Soekarno-Hatta airport terminal - Terminal 3 Ultimate - scheduled to be operational on August 17 to coincide with the August 17 National Independence Day.

She said a government regulation would be announced next month on the establishment of a holding company for state energy companies - PT Pertamina and Perusahaan Gas Negara (PGN) - with Pertamina as the parent company.

The process of forming five other holding companies - for mining, finance, toll road , housing and construction and engineering companies, is expected to be wrapped up before the end of this year, she said.

The main purposes of establishing holding companies is for efficiency, expanding investment and prevent cut of jobs.

"Most important is to prevent double investment such as between Pertamina and PGN," she said.