Designated for Building Infrastructure
JAKARTA, KOMPAS – The government plans to inject capital of Rp 72.9 trillion for 42 state-owned enterprises (BUMNs). The objective is to enable the business entities, which represent an arm of the government, to help realise the vision and mission of the President in building infrastructure.
The planned capital injection, or state capital participation (PMN), is set out in the Draft State Budget Amendment (RAPBN-P) of 2015. This was discussed during a work meeting between the government and Commission XI of the House of Representatives (DPR) in Jakarta, Wednesday (28 January).
Finance Minister Bambang PS Brodjonegoro and Minister of BUMNs Rini M Soemarno represented the government. President directors of BUMNs or officials representing the companies were also present. The meeting was chaired by Chairman of Commission XI of Golkar Party Faction, Fadel Muhammad.
In the 2015 State Budget (APBN), the capital injection to BUMNs was budgeted at Rp 5.1 trillion for four state-owned companies. In the 2015 RAPBN-P, the allocation has been increased to Rp 72.9 trillion for 42 BUMNs.
Bambang said that the capital injection for BUMNs is to complete the allocation of infrastructure budget of state ministries and agencies. The infrastructure spending allocated through the state ministries and agencies in the RAPBN-P of 2015 reaches a total amount of Rp 282 trillion.
The capital injection to BUMNs, according to Bambang, is due to the fact that the government cannot undertake many of the infrastructure projects. BUMNs as business entities are more flexible and can develop the capital to make it bigger. Capital development by non-bank BUMNs could reach three to four times the injected capital amount. Meanwhile, state-owned banks can develop it up to 6 – 7 times.
Bambang added that execution by BUMNs is also easier. This is because BUMNs do not have time limitations and their procurement is more flexible.
Rini explained that the support for BUMNs is given through the policies of capital injections and reduction of dividend payouts. The policy to reduce the dividend payment is to allow BUMNs to maintain company liquidity and strengthen their own capital. BUMNs can increase capacity, especially for investment.
However, said Rini, the policies have not been fully supported the role of BUMNs to realise the government’s priority programmes. Therefore, the government feels the need to add capital for state-owned enterprises that are directly related to the implementation of the President’s priority programmes.
For the purposes of maritime development, the capital injection proposed for PT Pelindo IV is Rp 2 trillion. In addition, for PT Pelni, PT Djakarta Lloyd, and PT ASDP, [the proposed amounts are] Rp 500 billion, Rp 350 billion and Rp 1 trillion, respectively.
For the construction of infrastructure and connectivity, the proposed capital injection to PT Hutama is Rp 3.6 trillion, PT Waskita Rp 3.5 trillion, PT Adhi Karya Rp 1.4 trillion, PT Kereta Api Indonesia Rp 2.75 trillion, PT Angkasa Pura II Rp 3 trillion, and Perum Perumnas Rp 2 trillion.
In terms of food security, PT Sang Hyang Seri and PT Pertani have been proposed to get Rp 400 billion and Rp 470 billion, respectively. Cane-based sugar producer PT Perkebunan Nusantara, which encompasses five companies, have been proposed to get a total PMN amount of Rp 3.5 trillion. Meanwhile, PT Garam will receive Rp 300 billion.
Commission XI member of DPR of the Prosperous Justice Party (PKS) Faction, Zulkieflimansyah, expressed his appreciation for the government’s policies to strengthen BUMNs. However, he cautioned that the strengthening of these state-owned enterprises has not touched the aspect of industrialisation. In fact, industrialisation is a prerequisite for progress.
Commission XI member of Indonesian Democratic Party of Struggle (PDI-P) Faction, Andreas Eddy Susetyo, stated that the capital injections to BUMNs for purposes of building infrastructure are basically positive. However, he asked the government to look back at the fiscal space because corrections of economic growth, production of ready-for-sale oil, and the selling price of Indonesian oil will reduce revenue. “It must be seen again, which [allocations of] the state capital participation manifest a priority,” said Andreas.
On Wednesday night, the discussion of PMN had finished. However, there was no agreement yet between the government and Commission XI of DPR.
Secretary General of the Indonesian Forum for Budget Transparency (Fitra), Yenny Sucipto, said that the increased PMN amount from Rp 5.1 trillion to Rp 72.9 trillion does not have any fundamental studies.
Researcher of Prakarsa Association, AH Maftuhan, advised that the government focuses on increasing tax revenues rather than increasing the PMN. “Increasing tax revenues is more in line with the government’s vision and mission,” he said. (LAS/MED)