Minister to grant equity participation to two SOEs, Land Bank Agency

Minister to grant equity participation to two SOEs, Land Bank Agency

Finance Minister Sri Mulyani Indrawati following a meeting with Commission X1 of House of Representatives in Jakarta, Thursday, September 22, 2022. (ANTARA/Sanya Dinda/my)

Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati has proposed granting Rp15.5 trillion in state equity participation to two state-owned enterprises (SOEs), including PT Garuda Indonesia Tbk and PT Hutama Karya, as well as the Land Bank Agency.

She said that Rp7.5 trillion would be given to the country's flag carrier Garuda Indonesia to meet the needs of maintenance, restoration, maintenance reserves and additional working capital through a preemptive rights scheme.

The state equity was given after an agreement with creditors was ratified following the approval by authorities, Indrawati said in a working meeting with Commission XI of the House of Representatives here on Thursday.

"So the state equity participation is granted after Garuda's balance sheet is more manageable and negotiations with creditors have been conducted and ratified in the homologation court decision," she said.

According to the plan, as much as Rp4.5 trillion, or 60 percent of the allocation for Garuda Indonesia, would be used for restoration and management, and Rp3 trillion --the remaining 40 percent-- would be used as additional working capital.

Minister Indrawati also said that the government would disburse Rp7.5 trillion of state equity participation to state construction firm Hutama Karya, as well, thus bringing the total allocation for Hutama Karya to Rp31.3 trillion in 2022.

"With the aim of completing construction, especially the Sumatran Toll Road Phase I, we will always (monitor) performance indicators as (we) have said to Commission XI of the House of Representatives," she noted.

The Land Bank Agency, on the other hand, would receive Rp500 billion to acquire land covering an area of 14,086 hectares and development of 444.5 hectares of land, as well as additional working capital.

The state equity participation would be granted after obtaining approval from Commission XI of the House of Representatives, in which in-depth discussions would be resumed at the next working meeting.

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