Erick Thohir Claims For BUMN Finances Are Getting Healthier, Debt Ratios Go Down To 35 Percent

SOE Minister Erick Thohir. (Photo: Antara)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir claims that the financial performance of SOEs is now getting better and healthier.

This claim is evidenced by the net profit book of IDR 126 trillion in 2021.

The initial figure of unaudidited consolidation shot up considerably compared to Rp13 trillion in 2020.

Erick said that this achievement was also accompanied by a decrease in the ratio of interest-based debt to embedded capital to 35 percent and the ratio of interest-based debt to EBITDA which fell from 4.5 times to 3.5 times in 2021.

"Alhamdulillah, thanks to the transformation by prioritizing good corporate governance and risk management, efficiency, and professionalism, BUMN's financial performance is getting better, getting healthier. Net profit increases significantly, while the funding structure, and debt payment capacity of SOEs continue to strengthen, being at the company's ratio with rating investment grade," said Erick, quoted Friday, July 8.

In addition, Erick explained, the Ministry of SOEs carried out a number of strategic initiatives to increase debt capacity and capital structure of SOEs.

First, the debt restructuring of SOEs includes Waskita Karya, PTPN III, and Garuda Indonesia, all of which are SOEs that have weakened financial conditions due to COVID-19.

"Strict steps have been taken in 2021 by negotiating with creditors, with the restructuring agreement that has been made for Waskita and PTPN III in 2021. For Garuda, although the agreement plan has not been approved in 2021, it has just received approval from the restructuring plan in the PKPU," said Erick.

The Ministry of SOEs, said Erick, also focuses on reducing debt to balance sheets through strengthening the equity position in strategic SOEs affected by COVID-19.

The total investment and government support for SOEs in 2021 reached IDR 68.9 trillion.

Erick explained that more than 80 percent of the total was allocated to strategic SOEs in carrying out assignments, including the assignment of the National Strategic Project.

"We are also focusing on increasing EBITDA to strengthen debt pay capacity, by increasing sales and increasing operational efficiency and margin. Unaudidated operating income will grow in the range of 19 percent in 2021, while the net profit margin will increase from 0.7 percent in 2020 to 5.6 percent in 2021," he said.

Erick assessed that improving the performance of state-owned companies certainly has a major impact on society and the state.

"BUMN is healthy, contributions are increasing," he said.