The Optimism Of State-Owned Enterprise With The Presence Of SWF

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The government is trying to boost infrastructure to boost national economic growth. However, the state budget is limited so that alternative funding is needed to pursue this goal.

Sovereign Wealth Fund or the Investment Management Institution (LPI) was formed to solve this funding problem. With the existence of the LPI, the government invites the involvement of foreign investors to get involved in development in the country. The existence of this LPI then became a breath of fresh air for state-owned companies involved in this development.

Finance Director of PT Jasa Marga (Persero) Tbk Donny Arsal said that the SWF has at least four benefits. First, increasing the company's liquidity due to the inflow of funds. Second, alternative funding from the equity side.

"The third benefit is to improve Jasa Marga's capital structure because there is equity coming in", Donny said in a webinar entitled "Is BUMN Infrastructure Prepared to Optimize LPI Funds?", held by the BUMN Journalists Forum in Jakarta, Monday, March 8.

The fourth point, continued Donny is that with asset recycling, performance will increase because the sales are made above book value.

Jasa Marga itself said Donny, actually has 21 assets that are ready to accommodate funds from LPI. Of the 21 assets, 18 were included in the brownfield stage. That is, this project eliminates the risk of land acquisition and construction.

Even though 21 assets are ready, Jasa Marga has prepared 9 assets to be offered for the first phase. The 9 assets are Medan-Kualanamu-Tebing Tinggi, Jakarta-Cikampek II Elevated, Semarang-Batang, Gempol-Pandaan, and Pandaan-Malang. Then, there are also Gempol-Pasuruan, Balikpapan-Samarinda, Manado-Bitung and Bali Mandara.

"We need to convey that the assets we have prepared can be replaced by other assets in accordance with INA's own risk appetite, so we have just prepared it as a start, even though we are ready for 21 assets under Jasa Marga", said Donny.

The Finance Director of PT Waskita Karya (Persero) Tbk, Taufik Hendra Kusuma, said that the presence of LPI will help state-owned infrastructure developers to divest (asset recycle). This is because LPI acts as an investor who will take over investment projects that are already operating such as toll roads, airports, and ports currently owned by BUMN.

"That way, BUMN will again have new capacities, especially finance to fund the development of other infrastructure projects", said Taufik.

Meanwhile, Taufik said that the form of cooperation expected from LPI is in the form of releasing shares of the toll road which is currently owned by Waskita's subsidiary, PT Waskita Toll Road.

Currently, Waskita has ownership in 17 segments in Java and Sumatra, of which 12 have been operating, either fully or partially. Since late last year, Taufik said, Waskita's management had conducted intensive informal discussions with the INA team.

"With the inauguration of the INA management, Waskita hopes that the process can immediately proceed to the next stage and the divestment transaction of several toll roads to INA can be carried out no later than Semester 2 of this year", said Taufik.

Taufik conveyed that the expected divestment scheme is a cash sale and purchase scheme. In addition, Taufik continued, the government is currently focusing on improving the construction of dams and water infrastructure in Indonesia.

Taufik added, Waskita as an experienced contractor in the field of water infrastructure and according to KBUMN's direction regarding Waskita's specialization in the field of water infrastructure, as well as dams as one of its segment focuses, will certainly increase projects in this sector.

"It should be noted that the limited number of dams, reservoirs, and other water reservoirs has caused the water storage capacity in Indonesia as of 2019 to only reach 13.8 billion m3 of the target of 14.7 billion", said Taufik.

PT Hutama Karya (Persero) also welcomes the establishment of an Investment Management Institution (LPI) which has a large financial capacity so that it can be an alternative financing solution in completing the assignment for the construction of the Trans Sumatra Toll Road (JTTS).

EVP of Corporate Secretary Hutama Karya Tjahjo Purnomo hopes that the presence of LPI will improve the quality of infrastructure in Indonesia, especially on the island of Sumatra.

"Hutama Karya has operated two toll roads in Jakarta and seven toll roads on the island of Sumatra with a positive IRR rate and good daily traffic, making the toll road concession assets quite attractive to offer to LPI", said Tjahjo.

Tjahjo said Hutama Karya was ready to offer a number of managed Trans Sumatra toll roads to the Investment Management Institution (LPI). Said Tjahjo, the scheme offered is in the form of divestment or transfer of concessions for a certain period of time.

"The funds obtained will later be used to build new toll roads in Sumatra", said Tjahjo.