Transportation SOEs to be injected with Rp6.27 trillion
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 - BUMN transportasi disuntik PMN Rp6.27 T
12 July 2024
By Heru Febrianto
Jakarta, ID – Nine fractions in Commission VI of the House of Representatives (DPR) are supporting the proposal to grant state equity participation (PMN) to 16 state-owned enterprises (SOEs) worth Rp44.24 trillion for 2025. Among these SOEs, there are four transportation SOEs that are set to receive Rp6.27 trillion.
State-owned Enterprises Minister Erick Thohir said that PMN no longer relied on foreign debt. Erick ensures that the PMN funds received by SOEs in recent years came from the dividend payout of SOEs to the state.
“There has been a remarkable improvement under the supervision of Commission VI. Previously, PMN relied on foreign debt, but now we are convinced that dividends can sustain PMN,” Erick said at a work meeting with DPR Commission VI at the DPR Building in Jakarta recently.
Erick said that this was the result of the SOE transformation programme that has been implemented for the last several years. Erick said that, in the last five years, SOEs have contributed a substantial amount of Rp280 trillion, surpassing the PMN amount received by the SOEs during the same period that amounted to around Rp212 trillion.
Erick said that 89% of the PMN funds would be used by SOEs to carry out government tasks. Meanwhile, 7% will be used for restructuring and 4% for business development.
“The overall PMN amount required for 2025 is around Rp44 trillion,” Erick said.
At least 9 fractions within Commission VI of DPR are in support of the proposed PMN for 2025. The hearing, presided over by the Deputy Chair of Commission VI Sarmuji, approved the proposal put forth by SOE Minister Erick Thohir that aims to support sustainable development and the growth of regional and national economies.
During the hearing, Sarmuji from Golkar expressed that there were numerous positive factors drawn from the performance of the SOE Ministry and SOEs over the past few years that encouraged the approval of the Rp44,249 trillion PMN by nearly all members of Commission VI. One such consideration is that the amount of PMN provided by the state is less than the dividend payout contributed by SOEs to the state.
A similar statement was made by the PDIP representative Haris Turino who realised the dividend payout contributed by SOEs to the state reached 279.7 trillion from 2019 to 2024. This amount is far larger than the PMN realisation amount of Rp226.1 trillion.
“Besides contributing dividends to the state, we appreciate that SOEs are also contributing to non-tax state revenue (PNBP). Therefore, to enhance SOE performance in the future, we are in favour of granting PMN to SOEs,” Haris said.
Support has also been extended by PKB. The PKB spokesperson Tommy Kurniawan expects the 2025 PMN to accelerate the performance of SOEs.
“We hope the companies receiving PMN will change how they work, so the PMN funds can be utilised selectively to boost purchasing power, stimulate job creation, and enhance the role of SOEs,” he added.
Facilitating transportation
Out of the 16 SOEs approved to receive the Rp44.24 trillion PMN for 2025, four are transportation SOEs. These SOEs are PT Kereta Api Indonesia (PT KAI) that is set to receive Rp1.8 trillion, PT Industri Kereta Api (PT INKA) Rp976 billion, PT Pelayaran Nasional Indonesia (PT Pelni) Rp2.5 trillion, and Perum Damri Rp1 trillion. In total, these four transportation SOEs will receive PMN of Rp6.27 trillion.
PT Pelni President Director Tri Andayani explained that the company’s PMN funds would be used to purchase two new passenger ships. The decision to grant PMN to the company is driven by several factors, one of which includes the age of the company’s existing fleet.
At present, 12 ships, which constitute 46% of Pelni’s total fleet, have exceeded their technical age limit of 30 years. The operation of these older ships could potentially pose a safety risk to thousands of passengers and lead to inefficiencies in ship operation.
Tri mentioned that the 2025 PMN would be used to procure KM Tidar and KM Tatamailau that will turn 37 and 34 this year. “Besides PMN, an internal funding source will also contribute Rp0.5 trillion,” Tri stated.
PT KAI Finance and Risk Management Director Salusra Wijaya said that the company’s PMN funds would be used to bolster the Commuter Line through the import of 11 new trainsets. This injection is required to replace the majority of commuter trains that are over 30 years old, in anticipation of an increase in passengers.
According to the data from PT KAI, the average daily volume of Commuter Line passengers on weekdays throughout 2023 was 830 thousand. However, as of June 2024, this average volume has increased to 987 thousand passengers per day.
Passenger volume is forecasted to rise each year at an average rate of 6% from 2024 to 2027. Therefore, Salsura believes that an expansion of the fleet is required to avoid overcrowding at stations and on trains.
Damri Corporate Secretary Chrystian R. M. Pohan added that the company’s PMN funds were forecasted to be used to revitalise pioneer buses in underdeveloped, outermost, frontier, and border (3TP) areas and procure electric buses. In the future, these buses will also operate on pioneer routes and on PT Transportasi Jakarta corridors. The revitalisation process will use Rp490 billion of the PMN funds, while the electric bus procurement will use Rp510 billion.
“The revitalization of pioneer buses is set to improve public access, which is expected to boost connectivity in 3TP areas, stimulate economic growth, and facilitate education in various regions by easing the mobility of passengers and goods,” Pohan revealed.
Meanwhile, PT INKA President Director Eko Purwanto revealed that the proposed PMN for the company would be allocated to develop INKA’s factories in Madiun and Banyuwangi to support the domestic production of various components.
“Several components that have always been imported can be provided domestically,” he stated.
Eko said that the PMN funds would also be used to facilitate the significant passenger transportation segment of PT KAI Group. However, PT INKA’s current production capacity is quite limited.
Eko pointed out that the annual production capacity of motorcoaches at INKA’s Madiun facility was only 40 carriages in 2023 and 2024. The capacity is expected to increase to 125 carriages annually from 2025 to 2027. However, with the infusion of the PMN funds for 2024 and 2025, INKA’s production capacity of motorcoaches is projected to significantly rise to 320 carriages annually by 2027.
