TEMPO.CO, Jakarta - State-Owned Enterprises (SOE) Minister Erick Thohir claimed the financial performance of SOEs is getting better and healthier. In 2021, SOEs recorded a net profit of Rp126 trillion.

This unaudited consolidated net profit figure showed an increase of Rp13 trillion compared to 2020. The improving performance was also evident from the decrease in SOEs’ debt ratio.

“The SOEs’ debt-to-capital ratio fell to 35 percent and debt-to-EBITDA (earnings before interest, depreciation, and amortization) ratio dropped from 4.5 to 3.5 in 2021,” said Erick in a written statement on Friday, July 8, 2022.

He also said the unaudited operating income grew by around 19 percent in 2021 and the net profit margin rose from 0.7 percent to 5.6 percent.

According to him, the good condition was attributable to the transformation of SOEs that prioritizes good, efficient, and professional corporate management and risk management. Meanwhile, the capital structure and debt repayment capacity of SOEs are getting stronger or reaching an investment-grade rating.

The SOE Ministry, Erick went on, had carried out a number of strategic initiatives to increase debt capacity and the company's capital structure. The ministry also focused on measures to reduce the debt balance by strengthening the equity position of strategic SOEs that are affected by the COVID-19 pandemic.

In 2021, he noted that government support in the form of investment reached Rp68.9 trillion. Eighty percent of the total figures was allocated to strategic SOEs for carrying out assignments, including national strategic projects.

“We are also focusing on increasing EBITDA to strengthen debt capacity by rising sales and operational efficiency and margins,” said Erick Thohir.

RIANI SANUSI PUTRI

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