Erick Thohir: There Are 7 SOEs That Still Have Losses

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed that of the 47 state-owned companies currently, seven of them still experience negative cash flow or loss. Meanwhile, 40 others are healthy.

Of the 47 SOEs, 40 SOEs are healthy, 85 percent. There are seven SOEs that we really have to work hard for the next few years," he said in a working meeting with Commission VI of the DPR, at the Parliament Complex, Jakarta, Monday, November 4.

Erick said that of the seven state-owned companies that were sick, one of them was PT Krakatau Steel Tbk. The issuer with the stock code KRAS actually underwent restructuring in 2019.

However, continued Erick, the fire at the factory facility on May 5, 2023, had an impact on the company's operations as a whole.

"We are looking for a way to do this by producing positive Krakatau Steel EBITDA, whether it is necessary to work together. This is trying to find a way," he said.

Second, continued Erick, the company that is still at a loss is PT Bio Farma. He said the company was not healthy due to the impact of the COVID-19 vaccine.

As is known, when Indonesia was hit by the COVID-19 pandemic, the government assigned Bio Farma to buy as many vaccines as possible for domestic vaccine needs. After the COVID-19 pandemic is over, the rest of the vaccine needs to be implemented because it has exceeded the expiration date.

"So I don't think it's something that looks like a state loss because we really had to reserve at that time we were fighting against COVID-19," he said.

Currently, continued Erick, Bio Farma has received a new commitment from internationally worth IDR 1.4 trillion for the distribution of polio vaccines. "Almost 85 percent of domestic production is distributed to 150 countries. This is actually one of the real global companies we have," he explained.

In addition to improving the holding, Erick also said that the Ministry of SOEs continues to improve Indofarma and Kimia Farma. Where Indofarma has also completed the PKPU process. Meanwhile, Kimia Farma is currently carrying out the restructuring process of bank creditors.

"Here, including Indofarma, we will fix it. Regardless of the issues, we will solve them with of course staffing. But we have to scale up a little to become a supply chain," he said.

Third, the company that is still experiencing losses is PT Wijaya Karya Tbk or WIKA. However, Erick said there was already a way for WIKA to carry out the restructuring.

Fourth, PT Waskita Karya Tbk or WSKT. Erick said the losses suffered by this company were due to a decrease in the number of contracts that could not bear the high operational costs and financial expenses.

Waskita yesterday signed a restructuring of Rp26 trillion with 21 creditors. Wijaya Karya and Waskita Karya, we are waiting for a letter of approval from the Minister of Public Works on how we can consolidate from seven to 3 works. So that the conditions of these works are healthier," he said.

Fifth, continued Erick, Jiwasraya. He said Jiwasraya showed good progress, just waiting for the liquidation process.

Sixth, continued Erick, Perumnas. Erick said the future Perumnas business model must be changed. Where it no longer builds landed houses. But also have to be graded.

"Because of the composition of land in Indonesia, 70 percent of the sea and 30 percent of the land. With our total population that will reach 315 million, it is impossible for the progress of this housing to continue to build landed houses. That is, it is not quite resistant," he said.

Finally, continued Erick, Perum Percetakan Negara Republik Indonesia (PNRI). Erick said that the PNRI is a printing company, where in the past state documents were required to be printed at the PNRI. However, now there are no more obligations.

As a result, said Erick, this caused losses suffered by this company. Moreover, now the market is open so that the PNRI loses to compete.

"Now of course with the opening of the market, of course, this is starting to lose competition. This is one of the things that we will restructure about the PNRI," he explained.