Waskita, Adhi, BTN, and BNI injected with Rp10.46 trillion: 8 SOEs to receive Rp55.88 trillion state capital participation next year
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 - Waskita, Adhi, BTN, dan BNI Disuntik Rp10,46 Triliun: 8 BUMN dapat PMN Rp55,88 Triliun Tahun Depan
23 September 2021
By: Muawwan Daelami
Jakarta – Four State-owned Enterprise (SOE) issuers will be injected by a total state capital participation (PMN) of Rp10.46 trillion in 2022. The four state-owned issuers are PT Waskita Karya (Persero) Tbk (WSKT), PT Adhi Karya (Persero) Tbk (ADHI), PT Bank Negara Indonesia (Persero) Tbk (BBNI), and PT Bank Tabungan Negara (Persero) Tbk (BBTN).
The PMN provided by the government to the four SOE issuers are part of the total PMN of Rp55.88 trillion that will be injected to eight SOEs next year. Four other SOEs are non-public SOEs, namely Perum Perumnas, PT PLN (Persero), PT Hutama Karya (Persero)/HK and PT Aviasi Pariwisata Indonesia (Persero).
Waskita will receive a PMN of Rp 3 trillion, Adhi will receive Rp1.98 trillion, while BNI and BTN will each receive Rp3.trillion and Rp1.98 trillion respectively. Meanwhile, Perumnas, PLN, HK, and Aviasi, will each receive Rp1.57 trillion, Rp5 trillion, Rp31.35 trillion, and Rp7.5 trillion respectively.
The government is planning to inject a total PMN of Rp55.88 trillion to eight SOEs, including four state-owned issuers that have been approved by the parliament.
During the work meeting of House of Representatives (DPR) Commission VI and SOE Minister, Erick Thohir, at the DPR Building in Jakarta on Wednesday (22/9). DPR Commission VI Deputy Chairperson, Aria Bima, affirmed that DPR Commission VI approved the 2022 PMN that has been agreed on by the Finance Ministry. DPR has also approve the additional PMN in 2022.
“We have conducted a hearing with the PMN receivers,” Aria Bima said when he was talking about the conclusion of the meeting.
According to SOE Minister, Erick Thohir, in the early proposal, there were five SOEs approved to receive the PMN next year, namely Perumnas, PLN, HK, Waskita, and Adhi. However, additional PMN is approved for three more SOEs, namely BNI, BTN, and Aviasi. Besides that, the PMN for HK was originally Rp23.5 trillion, then it was increased to Rp7.5 trillion.
“I recently received information on the result of the meeting between the budget board and the Finance Ministry. They have agreed to increase the PMN, we are asked to report here [to Commission VI] as we have entered the investment reserves of the Finance Ministry and the APBN (State Budget),” Erick said.
Erick Thohir explained that the PMN for Perumnas would be used to repair the capital structure and continue the One Million Houses program for low-income citizens. Then, PLN’s PMN will be used to construct various electricity infrastructures, such as transmission facilities and substations as well as to provide electricity for villages.
Moreover, the PMN provided for HK, according to Erick Thohir, will be allocated to complete the construction of eight segments of Trans-Sumatra toll road spanning 162 km. Then, Waskita’s PMN will be used to complete the construction of segments of Kayuagung-Palembang-Betung toll road and Bogor-Ciawi-Sukabumi toll segment.
Next, Adhi Karya’s PMN will be used to complete the construction of Solo-Yogya-Kulonprogo toll road, Yogyakarta-Bawen toll road, and Karian-Serpong Regional Drinking Water Supply System (SPAM). Meanwhile, the PMN of BNI and BTN will be used to increase their capital. “The PMN of Aviasi will be used to increase their capital and support the programs of subsidiaries,” the SOE Minister stated.
SOE Law revision
During the occasion, SOE Minister, Erick Thohir, also appreciated the initiative of DPR Commission VI in accelerating the revision of Law No. 19 of 2003 on SOE. The purpose of the revision is to improve the authority of the SOE Ministry in managing SOEs.
“This is appropriate, because the context is to improve the performance of SOEs simultaneously,” he affirmed.
Erick revealed that, until now, the SOE Ministry did not have a role in carrying out privatisation as the authority is held by their own committee. The same goes for investments. However, in the context of closing and restructuring SOEs, the SOE Ministry and DPR Commission VI have a determining role.
“So, not only ministers and ministries will be improving SOEs, but also DPR Commission VI. Be it PMN, debts, or ownership. It will be more optimal if all parties take part, which is why the SOE Law must be improved,” he added.
Hence, Erick Thohir is asking the SOE Law to be emphasised, not to be increasing the authority of the SOE Ministry, but to be a catalyst for SOE board of directors who are carrying out their task and authority.
“We are changing the mentality of the board of directors so that they will be responsible,” he stated.
Erick revealed that another purpose to revise the SOE Law is to map out the required PMN or the dividends produced by the company performance.
For example, he mentioned that SOEs with weak financial performance that were tasked by the government or by ministries or institutions required PMN.
“If PMNs need be provided periodically, we can use the multiyear system. We are also managing the dividends periodically. We cannot provide PMN this year then stop the next year,” he said.
According to Erick Thohir, the revised SOE Law will accommodate that, so the PMN provided will be more comprehensive. Hence, the PMN will provide more benefits that are more expansive and optimal for citizens, the nation, and the state. “PMN must have a clear context,” he said.
Hence, the SOE Minister said that the initiative to revise the SOE Law is key, as the impact will affect PMN and company performance. Moreover, the revision of SOE Law will impact corporate actions, such as mergers or SOE improvement in becoming a champion.
