DPR Approves PMN Giving To LPEI, Sri Mulyani Nego Remains At IDR 10 Trillion

Minister of Finance Sri Mulyani (Photo: Antara)

JAKARTA - Commission XI of the House of Representatives of the Republic of Indonesia (DPR RI) agreed on a cash State Equity Participation (PMN) for the Indonesian Export Financing Agency (LPEI) of IDR 5 trillion. With the condition that it is implemented with the principles of prudence, good corporate governance, and does not repeat management errors.

However, the Minister of Finance (Menkeu) Sri Mulyani Indrawati had disagreed with the agreement of Commission XI of the DPR RI which only approved PMN for LPEI of IDR 5 trillion even though previously proposed around IDR 10 trillion.

"For some PMNs, I see a very big difference, namely yesterday's LPEI issue, we conveyed around Rp. 10 trillion and also deepened Rp. 10 trillion," he said in a Working Meeting with Commission XI DPR RI, Wednesday, July 3.

Sri Mulyani explained that in terms of principles regarding LPEI's restructuring, LPEI has provided backups for the reserve for impairment losses (CKPN) which have improved in the context of performance recovery.

In addition, Sri Mulyani added that at the same time LPEI also needed to develop its bank financial improvements. Therefore, PMN proposed Rp. 10 trillion in order to support Indonesian exports.

On the other hand, Sri Mulyani is also very supportive and agrees with Commission XI which conveys the importance of conducting performance audits and business models in LPEI.

"Because this is what we also need to get PMN of Rp. 10 trillion and ensure the sustainability of LPEI's performance," he said.

Sri Mulyani even invited the Indonesian House of Representatives to jointly oversee LPEI so that it becomes an institution to be able to support Indonesian exports so that they have good governance.

In addition, Sri Mulyani said that PMN for LPEI of Rp. 10 trillion could be approved by Commission XI so that it remains sustainable, and so that there is an evaluation of the LPEI business model will provide reports every semester, and hold separate work meetings with commission XI, and will even invite OJK as the supervisor.

"I propose a direct working meeting with Commission XI, so that we can see together and even if necessary we invite OJK as a supervisor and also an internal and external auditor, both BPKP and BPK," he said.

Sri Mulyani said that she believed that if they were monitored together, they would be able to run their business model smoothly so that they could understand the advantages and weaknesses of the LPEI business model.

"Because I believe that a jointly supervised institution will certainly be able to protect it together and so that he can carry out his mission, and we can understand the advantages and weaknesses in the LPEI model business, because LPEI is a subgeneral, so he is a special creature with special laws," he concluded.