JAKARTA - The outbreak of the corona virus or COVID-19 which is increasingly widespread in Indonesia has had a negative impact on various sectors, including the business of State-Owned Enterprises (BUMN). One of the impacts is that dividends from state-owned companies find it difficult to reach the target.
Minister of State-Owned Enterprises (BUMN) Erick Thohir said that the 2020 dividend target is difficult to achieve. In fact, the 2021 dividend payment is projected to only reach 50 percent. Even so, said Erick, BUMN dividend payments are likely to return to normal in 2022.
"With these conditions, the 2020 dividend is likely to be missed. In 2021 it is certainly a long way off because we have seen the impacts in many SOEs. We hope that 2022 will return to stability," said Erick, during a working meeting with Commission VI of the DPR, in Jakarta, Friday , April 3rd.
Erick explained, currently the Ministry of BUMN is mapping which SOEs will be negatively affected by the spread of the COVID-19 outbreak in Indonesia.
For example, Erick said, the Ministry of BUMN anticipates an increase in non-performing loans (NPLs) at the Association of State-Owned Banks (Himbara), especially on micro, small and medium enterprises (UMKM) loans.
"Because we know, with the policy from the government regarding the interest of SMEs and others being postponed, then all industries will also be affected. Now there will definitely be an increase in NPLs in Himbara," he said.
Then, continued Erick, PLN and Pertamina's cash flow will also be disrupted by the decline in the rupiah exchange rate due to the COVID-19 outbreak. This is because PLN has bonds, most of which are denominated in dollars.
Meanwhile, Pertamina, in importing oil, uses the dollar currency, even though it sells in the rupiah exchange rate. For this reason, Erick said, his party had also held a meeting with Pertamina's directors to ascertain how their cash flow was.
Erick said this was done to anticipate that Pertamina would not be in an alarming condition due to the pressure of COVID-19.
"Certainly, the decline in revenue for BUMN in the tourism and transportation sector. Angkasa Pura, Garuda, Railways, HIN, Pelindo, ASDP, Pelni and others have seen that the possibility this year could be minus. This is certainly burdensome," he said.
Target SOE Debt
Not only that, Erick said, the impact of the COVID-19 outbreak was also targeting BUMN debts that would be due. One of them, Garuda Indonesia, which has bonds worth 500 million United States (US) dollars which will mature in June 2020.
"We know that the aviation industry everywhere in the world is collapsing," he said.
Erick revealed, actually BUMN has a very good solution to overcome the impact of COVID-19 in the transportation sector, namely when the Haj and Umrah pilgrimages can continue.
"Garuda also yesterday actually had a very good solution, when the Umrah pilgrimage was still running. We closed several foreign flights that were no longer efficient, but prioritized domestic flights. Initially it was good, but now all of them are closed, of course it creates cash flow- it is very negative, "he said.
Then, said Erick, Bulog also faced short-term debt pressure due to limited cash and inventory buildup. Where this short-term cash comes from Himbara.
Erick said, to overcome the situation that had befallen Bulog, he had conducted a joint meeting with the Minister of Social Affairs and several other ministers to find a way out. In accordance with the conditions of the Perppu, now the inventory will be provided to the public in the form of direct assistance.
Not only that, Erick explained, there are state-owned enterprises that are facing long-term fixed coupon bonds with low interest rates at this time.
"We know that all long-term projects are financed by Himbara with short-term loans. Fortunately, yesterday there was a solution with the Ministry of Finance, perhaps we will try to make these short-term debts long-term," he said.
Erick said, through this option, the government program in carrying out infrastructure development will continue to run.
BUMN restructuring
On the other hand, Erick has implemented his policy of efficiency in the company of children and grandchildren under his leadership. There are about 51 children and grandchildren of state-owned companies that will be closed. The goal is for state-owned companies to focus on running their core business.
Erick said that state-owned companies must carry out good corporate governance (GCG), focus on core business and sustainable efficiency. This is done, so that the company's children and grandchildren continue to be healthy.
Of the 51 children and grandchildren of BUMN that were cut, they came from three companies, namely PT Garuda Indonesia, PT Pertamina and PT Telkom.
The number of children and grandchildren that Garuda Indonesia cut was 6 companies. Meanwhile, at Pertamina there are 25 children and grandchildren of businesses that have been closed. Meanwhile, in Telkom there are 20 business children and grandchildren.
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