Perumnas Proposes An Injection Of Rp1.56 Trillion Of State Equity Participation Funds

Illustration of a residential complex. (Photo: ANTARA)

JAKARTA - The National Housing Development Corporation or Perumnas proposed an injection of funds from the state capital investment (PMN) of Rp1.56 trillion to strengthen its capital structure, increase its capacity to provide finance, and complete inventories.

President Director of Perumnas Budi Saddewa Soediro said that the background for the application for PMN funds injection was based on the company's unfavorable financial condition due to declining sales and profitability.

"Net operating cash flow is negative, financial ratios do not meet the financial covenant requirements, so Perumnas is not bankable," Budi said as quoted from Antara, Thursday, June 16.

Budi explained that the company's unhealthy financial condition was caused by two obstacles.

First, past financial performance in which the financial structure was unhealthy, net operating cash flow was negative, and interest expense was very high.

Second, the impact of the COVID-19 pandemic has resulted in a decrease in income due to a decrease in people's purchasing power and limited availability of credit for low-income people.

He said that the additional PMN funds would be used to complete the inventory because Perumnas now has a stock of 8,710 simple houses ready for habitation, 8,897 units of houses under construction, and more than 47,000 plots of land ready to build.

"This area is ready, we can't build it yet. We hope that after obtaining PMN of IDR 1.56 trillion, the capital structure will become healthier, financial ratios will improve, and meet financial covenant requirements, so that Perumnas' funding access capability can increase," explained Budi.

"So that we can complete all inventories, meet customer demands, and can rotate on new developments," he continued.

Member of Commission VI DPR RI, Harris Turino, questioned the reason why Perumnas applied for a PMN of Rp. 1.56 trillion which was only used to complete landed houses of Rp. 1.07 trillion and flats of Rp. 0.49 trillion.

"I'm confused about having an inventory of this size, but I need PMN to complete the landed houses and flats," he said.

Furthermore, he also questioned Perumnas' house sales figure, which was only IDR 247 billion until May 2022.

According to him, the sales figure is only 15 percent of the Perumnas RKAB which reached Rp1.6 trillion.

"This is far from the target. What is the cause? Are Perumnas houses not selling or what is it? This is a bit strange," said Harris.