"Yesterday it was decided that this would be input into the PNM 2024. That's why we see PMN 2024 changing from Rp33 trillion to Rp57 trillion," said Erick Thohir at a hearing with members of the commission which oversees industry, investment, and business competition in Jakarta on Monday.
He informed that the cash PMN of Rp33 trillion that was previously proposed was allocated for seven state-owned enterprises.
Providing details, he said state-owned electricity company PLN will receive PMN of Rp10 trillion to achieve the electrification ratio target. State-owned construction company Hutama Karya will receive Rp10 trillion for funding for the operational period, and state-owned cargo and passenger shipping company Indonesian National Shipping (Pelayaran Nasional Indonesia/Pelni) will get Rp4 trillion for the purchase of three passenger ships for pioneer routes.
Then, state-owned insurance holding company Indonesia Financial Group (IFG) and state-owned train manufacturer Industri Kereta Api (INKA) each will get an allocation of Rp3 trillion. IFG will use the funds to increase the guarantee capacity of KUR and INKA to increase production capacity and quality.
Furthermore, Rekayasa Industri, a construction engineering company, will receive Rp2 trillion for restructuring the capital structure , and state-owned food holding company RNI will be provided Rp1.9 trillion for investments in investment and working capital subsidiaries.
According to Thohir, an additional PMN of Rp24.04 trillion will be utilized based on the results of President Joko Widodo's internal meeting on April 28.
Hutama Karya will receive an additional Rp12.5 trillion to complete the construction of the Bogor-Ciawi-Sukabumi and Kayu Agung-Palembang-Belitung toll roads.
IFG will receive an additional Rp3.56 trillion to complete the transfer of the Jiwasraya policy. Meanwhile, the BUMN that has now been proposed to receive cash PMN is Wijaya Karya, which will get Rp8 trillion to strengthen the capital structure.
"At the previous meeting, actually there was a proposal that had been agreed at the time for the completion of IFG, which was an additional Rp3.56 trillion because the prosecutor's confiscation could not be in the form of cash, there are still goods that cannot be turned into cash," Thohir explained.
Out of the non-cash PMN of Rp673.36 billion, Rp649.23 billion will be allocated to Len Industri, a communication equipment company, and Rp24.13 billion to Varuna Tirta Prakasya, a state-owned logistic service company, both of which will be used to strengthen the capital structure.
Translator: Kuntum Khaira Riswan, Cindy Frishanti Octavia
Editor: Rahmad Nasution
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