Members Of The DKI DPRD Ask The New Period Council To Tighten Capital Provision To BUMD

JAKARTA - Member of the DKI Jakarta DPRD from the PKS faction, Ismail reminded fellow council members who had just served in the 2024-2029 period not to simply approve the capital request submitted by regional-owned enterprises (BUMD).

The former chairman of Commission B of the DKI Jakarta DPRD in 2022-2024 asked new members in the DKI DPRD to examine in detail the proposal for regional capital participation (PMD) before it was approved.

"Hopefully the members of the upcoming DPRD can more deeply analyze. So, it's not just discussing one PMD proposal," said Ismail in his statement, Wednesday, September 4.

Ismail explained, in his experience as a member of the DPRD for the 2019-2024 period, he saw that many BUMDs who had received capital injections did not show good business performance.

The BUMD actually loses and does not contribute to regional income. Therefore, in the future period, the provision of PMD must be tightened.

"So it is true that caution is needed in providing PMD. The caution in question is from the calculation of profit and loss. Because we can compare this with bank interest," said Ismail.

According to Ismail, when BUMD proposed PMD, but he was unable to provide revenue as compared to bank interest, this was highly considered not to be approved.

However, if the BUMD receives capital injections carrying out rational business projections, Ismail sees no problem agreeing to additional capital for the success of the program.

"When he is able to provide a profitable projection, we should encourage him," said Ismail.