Three State-Owned Enterprises (SOEs) to Receive Rp28.16 Trillion in Capital Injection in 2024; Hutama Karya to Receive the Largest Share

The Minister of State-Owned Enterprises (SOEs), Erick Thohir, stated that Rp28.16 trillion (approximately USD 1.8 billion) in State Capital Participation (SCP) has been allocated to three SOEs in 2024.

"Based on our discussions with the DPR Budget Board, the definitive SCP to be given to SOEs amounts to Rp28.16 trillion, distributed to Hutama Karya, Indonesia Financial Group, and Wijaya Karya," said Erick Thohir in a Working Meeting of Commission VI of the DPR RI in Jakarta, as quoted by Antara on Thursday (14/9/2023).

Hutama Karya (HK) received the largest SCP compared to the other two SOEs, namely Rp18.6 trillion. This budget will be used for the construction of Phase One of the Trans-Sumatra Toll Road (JTTS) and the completion of the Kayu Agung-Palembang-Betung and Bogor-Ciawi-Sukabumi toll road sections, which are National Strategic Projects (PSN).

Next, Indonesia Financial Group (IFG) received capital injection of Rp3.56 trillion, which will be used to complete the bailout of Jiwasraya policyholders.

Furthermore, Wijaya Karya (Wika) received capital of Rp6 trillion to strengthen its capital base and support working capital needs for PSN.

On the other hand, there is a SCP reserve of Rp12.8 trillion for other SOEs. However, Erick said that this certainty will be discussed first with the Ministry of Finance and Commission VI of the DPR RI.

This SCP reserve is intended for, among others, PT Kereta Api Indonesia (KAI) (Rp2 trillion for capital strengthening), IndonesiaRE (Rp1 trillion for capital strengthening), PT Pelni (Rp3 trillion for the purchase of pioneer passenger ships), PT INKA (Rp1 trillion to increase production capacity), PT PLN (Rp5.86 trillion for village electrification), and ID Food (Rp832 billion for capital strengthening).

"This (SCP for investment reserves) is the result of the latest discussions. Hopefully, it will be approved, but this is the mechanism offered," said Erick.

Commission VI of the DPR RI approved the budget allocation for the Ministry of SOEs in the 2024 Fiscal Year, in accordance with the DPR Budget Board Letter No. B/11091/AG.05.02/09/2023 dated September 11, 2023, regarding the submission of the Bill's discussion results, amounting to Rp308.02 billion.

Based on the DPR Budget Board Letter, Commission VI of the DPR RI requested that the Ministry of SOEs immediately submit budget adjustments per program no later than September 15, 2023, which will then be submitted to the DPR Budget Board.