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STATE OWNED ENTERPRISE

State owned banks dividends may be declining

Wednesday, 15 February 2017 | Laurensius Marshall Sautlan Sitanggang

JAKARTA. The amount of state revenues from the dividends of state owned banks may be declining, as the performance of some state owned banks in 2016 would have decreased.

Only two of four state owned banks, namely PT Bank Negara Indonesia Tbk (BNI) and PT Bank Tabungan Negara Tbk (BTN), which have been succeeded to book profits growth. Meanwhile, two other state owned banks, namely PT Bank Mandiri Tbk and PT Bank Rakyat Indonesia Tbk (BRI) suffered a profit reduction. In fact, Bank Mandiri and BRI were the main contributors of the banking dividends to the state revenues.

Bank Mandiri on Tuesday (14/2) released the 2016 financial statement. The financial statement shows that the consolidated profits of the banks had decreased by 32.1% from Rp 20.33 trillion to Rp 13.8 trillion.

President Director of Bank Mandiri Kartika Wirjoatmodjo said, the profits reduction was affected by the increase in the provisions from Rp 12 trillion to Rp 24.6 trillion in 2016.

With the current condition of Bank Mandiri, the total profits of the state owned banks had decreased by 4.77% from Rp 56.65 trillion in 2015 to Rp 53.95 trillion in 2016. Under this circumstance, the contribution of the dividends to state revenues is potentially to decrease.

As information, the revenues from state owned banks’ dividends have been declining during the recent years. Last year, the state owned banks contributed Rp 6.8 trillion of dividends of 2015 profits to the state revenues. In the previous year, the contribution of the state owned banks’ dividends to the state revenues amounted to Rp 10.26 trillion.

As of 2014, the dividend payout ratio was flat at 30%. However, since 2015, the government imposed various amounts of dividend payout ratio to the state owned banks.

Since 2015, the dividend payout ratios of BNI and Bank Mandiri have been standing at 25% each. Meanwhile, the government has been imposing payout ratios of 20% and 30% on BTN and BRI, respectively.

Previously, President Director of BTN Maryono proposed to have a reduction in dividend payout ratio of profits of less than 20%. The reduction aims at facilitating the bank to increase the amount of capitals.

Deputy of Financial Service Affairs at Ministry of State Owned Enterprises Gator Trihargo said that the government is planning to strengthen the capitals of the state owned banks, including by reducing the dividend payments. “We are planning to reduce the banks’ dividends by 2019,” Gatot said.

The plan sounds complicated for the state’s financial condition, which in needs for the huge amount of funds. Apparently, the government would boost the tax revenues, again. (Muhammad Farid/Translator)


 

Reporter: Laurensius Marshall Sautlan Sitanggang
Editor: Sanny Cicilia