House rejects capital injection for 3 companies

JAKARTA. The House's Commission VI overseeing state enterprises has rejected the government's proposal for capital participation (PMN) worth Rp 2,5 trillion for three state-owned companies (BUMNs).

"The reason for the rejection is that the three BUMNs are already able to carry out business restructuring, hence they do not need fund injection," Commission VI Chairman Teguh Juwarno stated after a working meeting with Finance Minister Bambang Brodjonegoro at the Parliament building here on Thursday.

The government had proposed capital participation for three BUMNs, Rp 1 trillion for PT Perusahaan Perdagangan Indonesia (PPI), Rp 1 trillion for port operator PT Pelindo III, and Rp 500 billion for PT Bahana PUI.

Teguh noted that the decision to reject the proposal was made after it was discussed in detail by the House Working Committee on BUMNs and was deliberated during a plenary session of Commission VI.

"Pelindo III decided to withdraw from the proposal of receiving the PMN as the company's financial performance continues to improve. The restructuring carried out by the management is able to improve the company's business, so it is developing," Teguh remarked.

PT PUI and PPI also are already able to source funding for their financial needs to finance their business expansion, he pointed out.

Besides rejecting the proposed PMN for the three BUMNs, Commission VI also decided to reduce the PMN provided for PT Hutama Karya from the initial Rp 3 trillion to Rp 2 trillion. "The cut will not affect PT Hutama Karya's business expansion plan. Last year, Hutama Karya obtained PMN, and in the coming years, it is likely to receive another PMN as it is assigned by the government to carry out infrastructure development," he affirmed.

On the occasion, the House Commission VI decided to provide PMN for 20 state companies amounting to Rp 44,38 trillion through the 2016 revised state budget comprising Rp 28,25 trillion in cash PMN and Rp 16,13 trillion in non-cash PMN.

With regard to the cash PMN, PT Hutama Karya, logistics firm Perum Bulog, and PT Angkasa Pura II each received Rp 2 trillion, PT Barata Indonesia Rp 500 billion, PT Wijaya Karya Tbk Rp 4 trillion, and PT Pembangunan Perumahan Rp 2,25 trillion.

Perum Perumnas received Rp 250 billion, PT INKA Rp1 trillion, PT PLN Rp 23,5 trillion, comprising Rp 10 trillion in cash PMN and Rp 13,5 trillion in non-cash PMN, PT Jasa Marga Tbk Rp1,25 trillion, and PT Askrindo, PT Perum Jamkrindo, and Pertani each received Rp 500 billion.

With regard to non-cash PMN, PT Perikanan Nusantara obtained Rp 29,4 billion, PT RNI Rp 692.53 billion, PT Pelni Rp 564.81 billion, Perum Perumnas Rp 235 billion, PT Krakatau Steel Rp 956,49 billion, PT Amarta Karya Rp 92,15 billion, PTPN I reveived Rp 25,05 billion, and PTPN VIII Rp 32,77 billion.