Consolidated profit of 91 SOEs hit Rp303.7 trillion: 5 infrastructure SOEs recover, Garuda and KS' condition improving
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Laba konsolidasi 91 perusahaan pelat merah tembus Rp303.7 trillion: 5 BUMN infrastruktur pulih, Garuda dan KS kian sehat
14 February 2023
By: Muawwan Daelami
Jakarta - Five infrastructure state-owned enterprise (SOE) issuers that are in the recovery program, namely PT Adhi Karya Tbk (ADHI), PT PP Tbk (PTPP), PT Wijaya Karya Tbk (WIKA), PT Jasa Marga Tbk (JSMR), and PT Semen Indonesia Tbk (SMGR), have recovered. Besides that, PT Garuda Indonesia Tbk (GIAA) and PT Krakatau Steel/KS Tbk (KRAS) that were bleeding out are now increasingly healthy.
These SOEs recovered thanks to the transformation carried out by the SOE Ministry. The success of the SOE transformation can also be seen from the profit realisation of these SOEs that continues to increase. The unaudited consolidated profit logged by 91 SOEs in 2022 reached Rp303.7 trillion, which surged by 142.96% from Rp125 trillion in 2021.
This was revealed by SOE Minister Erick Thohir during the work meeting with House of Representatives (DPR) Commission VI in Jakarta on Monday (13/2/2023).
Outside of the seven SOEs, Erick Thohir ensures that one SOE, PT Brantas Abipraya (Persero), is also healthy. As an SOE that is in the recovery program, Brantas Abipraya is the only state-owned company that is not a listed company.
Meanwhile, based on the data from the Indonesia Stock Exchange (IDX) and the SOE Ministry, out of the eight SOEs that have recovered and are healthy, only PT Wijaya Karya/Wika (Persero) Tbk (WIKA) is still logging loss. However, Wika’s condition entering 2023 is improving.
On the other hand, the valuation of SOE issuer shares has yet to reflect the fundamentals (undervalued), so the future prospect is still bright.
Highest record
According to SOE Minister Erick Thohir, the recovery of the performances of the eight state-owned companies is proof that the SOE recovery program is successful. “Eight SOEs have recovered and are ready to contribute to the state,” he said.
Erick Thohir also revealed that he was optimistic about SOEs surpassing their profit record with their highest contribution in history.
“The contribution of SOEs to the state increased by Rp68 trillion compared to the three previous years. Inshallah (God willing), SOEs will provide high dividends to the state this year. The target is maybe Rp50 trillion. However, it will surely surpass Rp60 trillion. So, it is a record of the highest dividends for as long as there are SOEs,” he said.
Erick explained that SOE contribution in the form of dividends, tax, and non-tax state revenue (PNBP) from 2017 to 2019 had reached Rp1,130 trillion. From 2020 to 2022, SOE contribution surged to Rp1,198 trillion.
“This means that, in three years, SOE contribution to the state significantly increased by up to Rp68 trillion,” he said.
Erick Thohir revealed that SOE assets surged to Rp9,867 trillion in 2022 from Rp8,978 trillion in 2021. Equities also grew from Rp2,778 trillion to Rp3,150 trillion. Meanwhile, revenue increased from Rp2,292 trillion in 2021 to Rp2,613 trillion in 2022.
He added that SOE consolidation had had a positive implication to the net profit of SOEs that surged by Rp179 trillion from Rp125 trillion to around Rp303.7 trillion.
“What makes us happy and what puts pressure on us is the SOE transformation that almost reaches 75% this year,” he said.
The SOE Minister underlines that Adhi Karya, Wika, PT PP, Brantas Abipraya, Jasa Marga, and Semen Indonesia are recovering.
“So, Adhi Karya, Wijaya Karya, PTPP, Brantas Abipraya, and Jasa Marga are healthy with profits surpassing Rp2 trillion. Semen Indonesia is also healthy [with profits] above Rp2 trillion. Waskita Karya is still in the restructuring process,” he said.
From the manufacturing sector, according to Erick Thohir, PT Krakatau Steel (Persero) Tbk (KRAS) is also healthy with a profit above Rp1 trillion. The same goes for the tourism services sector, PT Garuda Indonesia (Persero) Tbk (GIAA) successfully logged their highest profit with a non-cash of Rp55 trillion. The rest, such as PT Angkasa Pura (AP), are set to profit this year.
“In the last one to two years, airports have yet to be consolidated financially,” he said.
DPR appreciation
Meanwhile, DPR Commission VI Deputy Chairperson Aria Bima said that DPR Commission VI appreciated the SOE Ministry that had carried out the SOE transformation to improve the corporate performance and finances of SOEs in 2022, as well as SOE contribution to the state.
According to Aria Bima, DPR Commission VI is also encouraging the SOE Ministry to continuously transform SOEs according to the roadmap that has been prepared to improve the performances of SOEs in future periods.
“It includes implementing consistent good corporate governance (GCG) to create transparent, professional, effective, and efficient SOE management,” he emphasised.
On the other hand, SOE observer Herry Gunawan admitted that, seeing the dividends, SOE contribution had increased. However, the contribution has yet to match the level before the pandemic.
“Hopefully, in the future, it will continue to improve,” Herry told Investor Daily in Jakarta on Monday (13/2).
According to Herry, the most important thing is how SOEs can drive the national economy. Moreover, during a crisis, SOEs must be able to stabilise prices to optimally support the national economy.
Hence, he suggests that SOE governance cannot stop on the regulation level. The SOE Ministry must also be concerned of their role as it can positively impact business efficiency and fundamentals.
According to him, SOE consolidation must be carried out in total. This means that the transformation will not only target SOEs under the SOE Ministry, but also SOEs outside the SOE Ministry so that all will be consolidated.
For example, he mentioned that, in the infrastructure financing sector, there were PT Sarana Multi Infrastruktur (Persero)/PT SMI, PT Penjaminan Infrastruktur Indonesia (Persero)/PT PII, and Indonesia Investment Authority (INA).
“The companies must be consolidated by coordinating with the Finance Minister,” he said.
