Erick Thohir Surprised PTPN Has Large Debts Of Up To IDR 47 Trillion, But Private Palm Oil Companies Are Profitable

Minister of SOEs, Erick Thohir. (Photo: Doc. Ministry of SOEs)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir questioned the debt of PT Perkebunan Nusantara (Persero) or PTPN. This is because the company manages a large plantation area, especially now that the domestic palm oil industry has recorded profits in recent years.

Because of that, Erick admitted that he was surprised that PTPN could be under pressure by having a loss and a very large debt of USD 3.1 billion or IDR 47 trillion. While private plantation companies can be said to record profits.

"Well, what is extraordinary is that at PTPN, the debt is IDR 47 trillion. Even though the name of the oil palm plantation industry, the private sector is profitable, this is actually debt," he said in a webinar, quoted on Wednesday, September 29.

However, Erick said, his party is trying to improve by creating a holding in PTPN and making PTPN III the leader of the holding. He said that this step was solely carried out to repair debt and give confidence to the banks that became creditors.

"Imagine the directors of PTPN 1-12 if there is now only one board of directors, there are 34 directors who have been cut, but the efficiency is good and the end of the program is running," he said.

For your information, PTPN previously lost IDR 1.6 trillion until August 2020, now gains IDR 2.3 trillion until August 2021. PTPN will also focus on the sugar industry by forming SugarCo because so far Indonesia is still importing consumption sugar.

"These things will also be followed by focusing on SugarCo, sugar, which so far we have been importing sugar for consumption and there are even games here and there," he said.

Covert corruption

Erick Thohir suspects that there is corrupt behavior behind the debts of Holding Perkebunan Nusantara or PTPN III (Persero). According to him, the debt exists because of covert corruption. Therefore, Erick also promised to open the case.

In a working meeting with Commission VI of the Indonesian House of Representatives (DPR RI), Erick explained that the mounting debt in SOEs is mostly old debt. On that occasion, Erick also asked for parliamentary support to ensure that the debt restructuring carried out by a number of state-owned companies was not just a matter of delaying the problem.

Currently, said Erick, his party is facilitating the debt restructuring of PTPN III with 50 creditors both inside and outside. Where the scheme that was passed was in the form of an inter-creditor agreement (ICA) with all members of the USD syndicated creditors and SMBC Singapore as an agent.

"When PTPN has a debt of IDR 43 trillion and this is an old disease that we already know and this is something I feel is hidden corruption, which must be exposed and prosecuted for doing this," he said in a meeting with Commission VI of the DPR, quoted Thursday, September 23.

Furthermore, Erick reminded that SOE debt restructuring is not just lengthening bank interest installments, but is transformed through refocusing on programs or projects that bring profits to the company.

"After restructuring, PTPN must carry out massive efficiency in its operations. Second, corporate action, which is indeed a corporate action, is demanded. We initiated earlier, in addition to efficiency, an increase in production," he said.

In addition, Erick admitted that he would also refocus PTPN III's budget for several programs that are considered superior, for example, oil palm cultivation to increase consumption of sugar production.

"And, if we benchmark state-owned oil palm with the private sector, it's not much like in the past. That's where there was an increase in revenue of 37 percent. So, focusing on PTPN's existing products is key," he said.