TEMPO.CO, Jakarta-Despite budget cuts for a number of ministries, the government has decided to not revise state capital injections (PMN) for a number of State-owned Enterprises in the Revised 2016 State Budget Draft.
“PLN is the only SOE that will receive an additional fund, and it’s not even fresh money,” Finance Minister Bambang Brodjonegoro said in a work meeting with House of Representatives’ Commission VI overseeing industry and state-owned enterprises in Jakarta on Thursday, June 16, 2016.
President Joko “Jokowi” Widodo attended the meeting to replace SOE Minister Rini Soemarno.
In the Revised State Budget Draft, the state will provide the Healthcare and Social Security Agency (BPJS Kesehatan) with a capital worth Rp68.6 trillion (US$5.1 billion), increasing by Rp20.2 trillion (US$1.5 billion) from that earmarked in the 2016 State Budget at Rp48.3 trillion (US$3.6 billion).
As many as 24 SEOs will receive fresh capital, including state power company PLN that will receive Rp13.56 trillion (US$1 trillion). The fund is earmarked to support the realization of the 35,000 MW power plant project.
House Commission VI member Dwi Aroem Hadiati said that the additional capital injection was too huge.
“I think it’s unethical if a SOE proposes a higher state capital injection than other sector. I’m concerned that it will reduce the budget allocation for village funds,” Dwi said.
Dwi added that many SOEs failed to achieve their income targets and did not deserve capital injections.
SOE Minister secretary Iman Putro revealed that the goverment has set a target of tax revenue from SOEs at Rp172 trillion (US$12.8 billion), and a target of dividend at Rp34 trillion (US$2.5 billion).
“The realization [of the targets] is reflected by the Shareholder General Meeting, which has not been entirely recorded,” Iman said adding that not one state capital injection would be reduced.
Yenny Sucipto, secretary general of the Indonesian Forum for the Budget Transparency, deplored Finance Ministry’s policy to increase state capital injections instead of allocating the fund for people-centered programs. According to her, the capital injections would not have impacts on their performance.
PUTRI ADITYOWATI
