Only 10 state firms likely to receive pmn funds: Legislator

The government has planned to inject Rp48.01 trillion as PMN funding to 35 SOEs for 2015.
Jakarta (ANTARA News) - Only some 10 state-owned enterprises (SOEs) will possibly get state capital participation (PMN) funds from the government in the 2015 Revised Budget, a legislator said.

"Of the 35 SOEs that had been proposed to get the PMN funds, only 10 will likely get the fund injection. PMN funds for the remaining firms will mostly be postponed," Fadel Muhammad, chairman of Commission XI of the House of Representatives (DPR), which oversees financial affairs, said here on Thursday.

Muhammad explained that only a relatively small number of SOEs will receive the PMN funds because most of the 35 enterprises did not show any urgency to receive the financial aid.

"After discussing it with the DPRs Budgetary Board, we agreed that the injection of PMN funds will be given to SOEs related to businesses that affect a significant number of people, particularly small- and middle-scale businesses," he stated.

Muhammad, who is also a politician of the Golkar Party, did not provide details on the firms that will get the PMN funds.

"We are still carrying out studies. We still have time, so we do not need to work in a hurry," he remarked.

He further noted that the granting of the PMN funds was related to findings of the State Audit Board (BPK), according to which 14 of the 35 recipient candidates were still constrained by a number of problems, including those related to management, financial performance and assets.

Earlier, the BPK had urged the parliament and the government to pay special attention to the 35 SOEs that would receive the PMN injection.

The audit agency had emphasized that the management of state finances by SOEs should be done in accordance with existing regulations, especially with regard to abiding by the regulations on financial transactions and allocations for business expansion.

The BPK has completed its financial audit reports on 32 possible PMN fund recipient SOEs. It has sent the reports to Commission XI to be taken into consideration at the hearing, during which it will deliberate over the PMN funding allocation, BPK Commissioner Achsanul Qosasi had affirmed late last month.

"We have audited 32 firms. We hope the reports will be used as a basis for making decisions regarding PMN injections," Qosasi noted.

Furthermore, the BPK has urged the government and the DPR to lay greater focus on SOEs, as the audit agency is willing to give recommendations on activities of the firms in carrying out their businesses.

The government has planned to inject Rp48.01 trillion as PMN funding to 35 SOEs for 2015.(*)