Hutama Karya and KAI Among 10 State-Owned Enterprises (SOEs) to Receive Capital Injection of Up to Rp57.96 Trillion

The Ministry of State-Owned Enterprises (SOEs) has proposed a State Capital Participation (SCP) of Rp57.96 trillion in cash for 2024 and Rp673 billion in non-cash SCP.

According to Berita Satu, the Rp57.96 trillion in cash for 2024 will be disbursed to 10 SOEs. PT Hutama Karya (Persero) will receive the most, at Rp12.5 trillion, to complete projects originally undertaken by PT Waskita Karya Tbk.

Next, PT PLN (Persero) will receive Rp10 trillion, and PT Wijaya Karya (Persero) Tbk (WIKA) Rp8 trillion.

PT Pelayaran Nasional Indonesia (Pelni) is proposed to receive Rp4 trillion, Indonesia Financial Group (IFG) Rp3.5 trillion, and Industri Kereta Api (INKA) Rp3 trillion.

PT KAI (Persero) is budgeted to receive Rp3 trillion, Rekayasa Industri (Rekin) Rp2 trillion, ID Food Rp1.9 trillion, and PT Rajawali Nusantara (RNI) Rp1.9 trillion.

Note that the figures above are a combination of the first and second proposals.

In the first proposal, SOEs requested Rp33.96 trillion in SCP for 2024. After a meeting with President Joko Widodo in April 2023, an additional Rp24 trillion was added, bringing the total to Rp57.96 trillion, as submitted in the second proposal.

The companies receiving additional funds are Hutama Karya (increased from Rp10 trillion to Rp12.5 trillion), WIKA (Rp8 trillion), and IFG (increased from Rp3 trillion to Rp3.5 trillion).

“Regarding the additional SCP this year, the Ministry of Finance has decided that it will be included in the 2024 SCP. Therefore, if you look at the figures, the 2024 SCP has changed from Rp33.9 trillion to Rp57.9 trillion. The Ministry of Finance has fully committed to this additional SCP,” said Erick in a Working Meeting with Commission VI of the DPR RI in Jakarta on Monday (5/6/2023).

Similarly, Deputy Minister of SOEs II, Kartika Wirjoatmodjo, stated that the additional Rp24 trillion in SCP for 2023 is expected to be disbursed in January 2024.

The 2024 non-cash SCP will be allocated to strengthen the capital structure of PT Len Industri (Defend ID) with Rp649.23 billion, and PT Varuna Tirta Prakasya with Rp24.13 billion, as reported by Bisnis.com.

(See also: This is the History of Government Investment in SOEs for the Last 5 Years)