Anticipate Recession Potential In 2023, Erick Thohir Calls BUMN Companies Already Do Stress Tests

BUMN Ministry Building. (Photo: Doc. Antara)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed preparations for a potential recession in 2023. One way is to encourage efficiency in state-owned companies. "The issue of a future recession, if you are financial, we have done a stress test for all state-owned companies. Therefore, we continue to encourage efficiency. Because, we want cash," said Erick, in a working meeting with Commission VI of the Indonesian House of Representatives, in Jakarta, Monday, December 5. Erick gave an example at BUMN Karya. Erick said, he asked BUMN Karya to cancel the purchase of land for transactions that have not been paid. The goal is to maintain cash flow conditions next year. "Several BUMN works that already have been agreed to buy and buy land, I ask that if they can be canceled, and the money is returned. So instead of creating property areas, this is just a project," he said. As for projects that have been paid a third of the contract value, said Erick, he asked to be coaled. The goal is to encourage company cash, because the potential recession in the next year is overshadowing and cannot be ascertained. "For example, a third of which has already been paid, and then the payment is still underpayment. Yes, cancel, it's better if the money is reversed," he said.

Furthermore, said Erick, some SOE partners are also willing to cancel the purchase of land. According to him, it's just a matter of waiting for the legal umbrella. "It's just a legal umbrella, so that we all hold cash. Because, we don't know what the future conditions are on our own regarding the cash flow of each company," he said. On the other hand, Erick also encourages the funding of state-owned companies not to depend on the currency of the United States or the US dollar. However, we can also use several other currencies, such as Yen and other currencies. "We have indeed pushed one of the loans so that it doesn't depend on the US dollar, but there are also names that use other currencies, such as Yen," he said. Meanwhile in the food sector, Erick also ensures the focus of BUMN together with Bulog, and RNI to ascertain which is the assignment, and which is the oriented market. As an offset, Erick assesses it cannot be combined. "We also encourage how to finance in Himbara with cheap interest. So that if it becomes offtaker, there is no interest burden that becomes a problem in our food, (not possible) it becomes offtaker, but instead gets commercial interest," he said.