Sri Mulyani Will Inject PMN To 3 SOEs Next Year, How Much Is The Value?

Minister of Finance Sri Mulyani (Photo: Doc. Antara)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani Indrawati will allocate State Capital Participation (PMN) with a fairly large nominal amount of tens of trillions of rupiah to three State-Owned Enterprises (BUMN) next year.

The SOEs that will receive government budgets include PT Hutama Karya (Persero), Indonesia Financial Group (IFG), and PT Dirgantara Indonesia (Persero).

The amount of PMN for each company has been determined through the 2024 State Revenue and Expenditure Budget Draft (RAPBN).

Quoting Book II of the Financial Note of the 2024 RAPBN, the Ministry of Finance will allocate investment funds through additional PMN to Hutama Karya or HK amounting to IDR 12.5 trillion. This fresh fund will be used by Hutama Karya to complete the construction of a number of toll roads.

It was also explained that HK needed to continue its government assignment related to the expressway from Bakauheni to Banda Aceh or 24 toll roads for the Trans Sumatra (JTTS) along 2,812 kilometers (km).

"Given that JTTS is economically viable but not financially feasible, this project needs government support, one of which is through providing investment financing to SOEs," reads the Financial Note of the 2024 RAPBN, quoted Monday, August 21.

The assignment of JTTS development is in line with the National Medium-Term Development Plan (RPJMN) IV 2020-2024. Where HK must strengthen infrastructure in order to support economic development and basic services.

Furthermore, the Ministry of Finance will also allocate PMN for PT Bahana Pembinaan Usaha Indonesia (BPUI) or Indonesia Financial Group (IFG) amounting to IDR 3.55 trillion.

The fresh funds are to meet the funding needs of its subsidiary, IFG Life. In particular, receiving policies resulting from the restructuring of PT Asuransi Jiwasraya (Persero).

It was explained that the addition of PMN was part of the government's commitment to rescue the Jiwasraya policy, which if not carried out would have economic and social impacts. It was recorded that until the first semester of 2023 there were liabilities (polises) of approximately IDR 7.4 trillion that had approved the restructuring, but were still left behind in Jiwasraya.

"The policy transfer process is still being carried out in stages and requires government support so that acceleration can be carried out while maintaining a healthy IFG Life financial condition," reads the Financial Note of the 2024 RAPBN.

Still referring to the same source, it is explained that the total funding needs needed in the process of transferring the Jiwasraya policy to IFG Life is estimated at around Rp. 8 trillion.

Prior to the formation of the Defense Industry BUMN Holding, the Indonesian Aerospace had a bailout loan from the National Bank Restructuring Agency (BPPN). Where, the loan agreement was signed in 2003-2004.

It was explained that the debt was used by the company to support the human resource restructuring program (HR) at that time. The bailout fund loan consists of two stages with a total value of 65.7 million US dollars.

In detail, in the first phase amounting to 49.1 million US dollars was given on 18 November 2003 and the second stage worth 16.6 million US dollars was disbursed on 23 February 2004. The second phase of bailout loan consists of Tranche A of 3.6 million US dollars and Tranche B of 13.0 million US dollars.

The total loan of a bailout of 65.7 million US dollars was only completed in the amount of 22.2 million US dollars. Phase one loan has been completed in cash of 9.2 million US dollars. Meanwhile, Tranche B's second-stage loan has been converted into PMN worth 13.0 million US dollars based on Government Regulation (PP) Number 73 of 2011.

That way, there is still a remaining loan of 43.5 million US dollars in bailout funds. The Rician is the first phase loan balance of 39.9 million US dollars and the second stage of Tranche A is 3.6 million US dollars.

It was also explained that the outstanding debt of the Indonesian Aerospace of 43.5 million US dollars was in the form of principal debt of 43.5 million US dollars and interest of 56.1 thousand US dollars. It has been agreed that the principal debt will be followed up with a restructuring process through conversion into additional PMN.

Meanwhile, interest debts will be settled with cash payments to the State General Cash Account (RKUN) no later than before PP PMN is issued.

Therefore, through the 2024 RAPBN, non-cash PMN in the form of conversion of principal debt into additional PMN will be allocated Rp649.2 billion to the Indonesian Aerospace through holding parent, PT Len Industri (Persero).