Banking SOEs Want Dividend Payout Target Lowered
16 September 2014 17:48 WIB
TEMPO.CO, Jakarta - State-owned companies from the banking sector are asking the government to lower the 2015 dividend payout ratio target. The target, set by the House of Representatives' Budget Committee, is considered too burdensome.
The objection was made by PT (Persero) Tbk, PT Bank Mandiri (Persero) Tbk, and PT Bank BTN (Persero) Tbk.
Bank Negara Indonesia deputy director Felia Salim asked the government to focus on strengthening the national banking sector so that corporate profits could be used to invest. In addition, capital strengthening measures are required to face the ASEAN Economic Community (AEC) in 2015
"Ideally it is used for investment income," she told Tempo, Sunday. For BNI, the government is targeting a dividend payout ratio of 25 percent to 30 percent in 2015.
Last week, the government and the DPR's Budget Committee agreed to raise SOEs' dividend payout ratio target to Rp43.73 trillion. The number is Rp2 trillion higher from the previous agreement.
BTN president director Alvian Zahiruddin also wants the government to lower the target, citing the need for strong capital to welcome the AEC. "The dividend target will affect our capital structure," he said.
Nixon Napitupulu LP, corporate secretary of Bank Mandiri, said that the dividend target should be decided in a general meeting of shareholders. Currently, the government owns 60 percent stake in Mandiri.
Responding to SOEs' objection, DPR's Budget Committee chairman Ahmadi Noor Supit asked the SOEs not to be "whiny".
"If their excuse is to have expansions, they could borrow money from the bank," he said.
According to Ahmadi, the dividend target was raised because SOEs are owned by the government. Thus, when the government requires additional funding, the state must support. "Moreover, the funds are taken from the SOEs' profits; not the capital," he said.
SOE Minister Dahlan Iskan previously said the plan to raise dividend payout target will burden banks., especially when companies' performance are now decelerating due to the national economic slowdown. Dahlan is worried that a high dividend target would interfere with investors' plans to invest in state companies.
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