Receives IDR 1.2 Trillion PMN, PT PAL Affirms Commitment To Build Whole Local Production Submarines

Illustration (Photo: Doc. Antara)

JAKARTA – The State-Owned Enterprise (BUMN) in charge of the shipbuilding sector, PT PAL Indonesia, is committed to continuing to improve domestic capabilities in production development.

PT PAL Indonesia President Director Kaharuddin Djenod said this step was in line with the government's support to inject the company's finances through the State Equity Participation (PMN) mechanism.

"PT PAL Indonesia is ready to create a Whole Local Production Submarine through the 2021 State Capital Participation (PMN)," he said as quoted via the @kementerianbumn channel on Sunday, January 9.

According to Kaharuddin, the implementation of the submission of PMN APBN for Fiscal Year 2021 by the Ministry of Finance in the amount of IDR 1.28 trillion is an impetus for companies to make improvements to production capabilities, human resources, and facilities.

"The management of PMN 2021 will be focused on realizing the ideals of submarine development, which previously focused on the Joint Section to become a Whole Local Production," he stressed.

Kaharuddin added that by increasing submarine production facilities, it is hoped that it will minimize dependence on foreign defense equipment industry.

"The increase in production capability includes the completion of facilities including the construction of a Ship Lift, Glass Fiber Reinforced Plastic (GRP) Shop, Painting Shop, Blasting Shop, Torpedo Shop, and others," he explained.

To note, the government and the DPR agreed to re-spread PMN to a number of SOEs in the 2022 period.

According to VOI records, there are 8 state-owned enterprises that will be injected this year, namely PT Hutama Karya Rp 23.85 trillion, PT Waskita Karya Rp 3 trillion, PT Perusahaan Listrik Negara (PLN) Rp 5 trillion, PT Sarana Multigriya Finansial Rp 2 trillion.

Then, PT Adhi Karya Rp1.97 trillion, Perum Perumnas Rp1.56 trillion, the State Asset Management Institute Rp28.84 trillion, and PT Guarantee Infrastructure Indonesia Rp1.08 trillion.