Speaking at a hearing with the House of Representatives’ Commission VI, which oversees State-Owned Enterprises (SOEs,) SOE Minister Erick Thohir announced on Thursday (14/09/23) that Indonesian SOEs are in overall robust financial health, with a combined market valuation surging to IDR 2,200-trillion (USD 143-billion) from last year’s IDR 1,700-trillion, according to reporting from Jakarta Globe.
In addition to their financial strength, SOEs have contributed IDR 80-trillion to the state coffers in dividend payments. The government anticipates this figure to rise to IDR 85-trillion this year, Thohir said.
“We previously discussed a combined debt of IDR 1,600-trillion by state-owned companies, but the current situation demonstrates that SOEs have a combined capital of IDR 3,200-trillion and a market valuation of IDR 2,200-trillion. These figures outweigh the debt,” Thohir told lawmakers.
Jakarta Globe say that during the hearing, the minister unveiled a plan to inject additional capital of IDR 28.16-trillion into state-run construction companies Hutama Karya and Wijaya Karya, as well as state-owned financing firm Indonesia Financial Group (IFG).
Hutama Karya requires additional capital to complete the construction of the Sumatra toll road network, while Wijaya Karya is actively involved in the megaproject to build the new national capital, Nusantara, in East Kalimantan.
Regarding IFG, the company requires fresh capital to resolve financial issues stemming from the past corruption scandal in the state insurance company, Jiwasraya, where its assets were seized by prosecutors, as Thohir explained.
Jakarta Globe add that the government is set to invest IDR 12.8-trillion in the railway company KAI and an additional IDR 11-trillion in train carriage builder INKA. This investment follows the introduction of new railway systems, including the Great Jakarta Light Rail Transit (LRT) and the Jakarta-Bandung High-speed Train.
Source: Jakarta Globe
Stock toll road image by Roman Logov on Unsplash
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