State equity participation recipients must fulfil required KPI: gov't

State equity participation recipients must fulfil required KPI: gov't

PT KAI (Persero) freight train. KAI is one of the SOEs that receive state capital participation. ANTARA/HO-PT KAI

Jakarta (ANTARA) - The Finance Ministry has made it necessary for recipients of state equity participation (PMN), both state-owned enterprises (SOEs) and related institutions, to fulfil key performance indicators (KPI).

"PMN is a public fund, and of course, we have to put it to good use together," according to Dodok Dwi Handoko, an observer of the Restructuring, Privatization and Effectiveness of State Assets Separated by the Directorate General of State Assets (DJKN) of the Finance Ministry.

Handoko emphasized the need for good governance to manage PMN since the equity is a form of accountability for government investment financing sourced from the State Budget.

The KPI has been stated in the performance contract between the SOEs/PMN recipient institution and the relevant ministry that oversees it as a commitment from the SOEs management to achieve the target.

Moreover, KPI is also part of transparency and accountability to the public for the use of State Budget funds.

Handoko noted that all SOEs or related institutions have signed the 2021 PMN KPI to date, including PT Kereta Api Indonesia (KAI), PT Perusahaan Listrik Negara (PLN), PT Penataran Angkatan Laut (PAL), and PT Pelabuhan Indonesia (Pelindo).

Moreover, Indonesia Tourism Development Corporation (ITDC), PT Bahana Pembinaan Usaha Indonesia (BPUI), Badan Bank Tanah, Lembaga Pembiayaan Ekspor Indonesia (LPEI) and the Pusat Investasi Pemerintah (PIP) have also inked the 2021 PMN KPI.

The KPI for PMN included clear outputs and outcomes and having targets whose benefits can be felt directly by all stakeholders, both SOEs or institutions and also the people.

"PMN's KPI targets, both output and outcome, are adjusted to the activities or projects of each SOEs," he affirmed.

The output targets include the physical realization of project development, the electrification ratio, and the use of PMN funds in accordance with the target.

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Meanwhile, the outcome targets entail the absorption of local workers and local and Micro, Small and Medium Enterprises’ (MSMEs’) products as well as an increase in tourist visits.

"The fulfillment of KPI for PMN should be monitored," he emphasized.

The Finance Ministry also urged SOEs and institutions receiving PMN to continue to transform and make improvements within their respective companies after receiving PMN through the State Budget.

For 2022, the government will provide PMN to seven SOEs: Waskita Karya reaching as much as Rp3 trillion; PT PII, Rp1.08 trillion; PT SMF, Rp2 trillion; PT Adhi Karya, Rp1.97 trillion; PT Hutama Karya, Rp23.85 trillion; Perum Perumnas, Rp1. 56 trillion; and PT PLN, Rp5 trillion. 

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