Jokowi Targets BUMN Dividend Of IDR 35.6 Trillion In 2022, Erick Thohir Proposes IDR 72.45 Trillion For PMN

Indonesian President Joko Widodo (Jokowi) together with SOE Minister Erick Thohir. (Photo: Doc. Ministry of SOEs)

JAKARTA - The government targets BUMN dividends to reach IDR 35.6 trillion in 2022. In the Financial Note delivered by President Joko Widodo, the revenue from Separated State Assets (KND) in the RAPBN for the 2022 fiscal year of IDR 35.6 trillion consists of the government's share of profits Banking SOEs Rp19.63 trillion and the government's share of profits from non-banking SOEs was Rp15.97 trillion.

"This KND revenue grew by 18.6 percent compared to the outlook in 2021. This increase has taken into account the performance of SOEs in 2021 and the improvement of SOE portfolios through corporate restructuring," Jokowi said in a Financial Note, quoted Wednesday, August 18.

This projection is taken from the estimated income from BUMN dividends in 2021 which amounted to Rp. 30 trillion, aka a decrease of 32.73 percent compared to the realization of BUMN dividends in 2020 which was valued at Rp. 44.6 trillion. Whereas before the COVID-19 pandemic or in 2019, BUMN dividends could reach Rp50.6 trillion.

The policy that will be taken by the Government to optimize dividend receipts for SOEs in 2022 is through restructuring and restructuring as well as improving strategic planning for the development of SOEs such as restructuring, mergers, holdings, or other corporate/shareholder actions.

The policy in determining the amount of dividends takes into account the profitability of SOEs, the company's cash and liquidity capabilities, the company's funding needs, investor perceptions, regulations and covenants, and the role of SOEs as development agents.

Previously, Minister of State-Owned Enterprises (BUMN) Erick Thohir said that the ministry he led proposed state capital participation (PMN) in 2022 of Rp72.45 trillion for 12 state-owned companies.

Around 80.7 percent of them are assignments and 6.9 percent are for restructuring. Of this amount, Rp. 38.5 trillion was for PMN to SOEs in the infrastructure cluster.

"If you say the timing isn't right, I agree. But this has to go on, because it's already finished, it's not something new," said Erick.

The Ministry of State-Owned Enterprises noted that the contribution of SOEs in the last 10 years has reached around Rp. 3,200 trillion, which includes tax payments, non-tax revenues and dividends.