State-Owned Banks' Dividend Payments Expected to Plunge in 2021

The financial performance of State-Owned Enterprises (SOEs) in Indonesia was impacted by the COVID-19 pandemic. Consequently, the profit contributions from several state-owned companies to the national treasury are projected to decrease in 2021.

The largest decrease occurred at PT Bank Negara Indonesia (Persero) Tbk, reaching 78.28% to Rp 500 billion. Dividend contributions from two other SOE banks, namely PT Bank Rakyat Indonesia (Persero) Tbk and PT Bank Mandiri (Persero) Tbk, are also expected to decline this year.

Dividends from BRI to the government are projected to fall by 41.53% to Rp 6.9 trillion. Meanwhile, government revenue from Bank Mandiri's profits is expected to decrease by 37.37% to Rp 6.2 trillion.

Government revenue from PT Pertamina (Persero)'s profits is also expected to fall by 52.94% to Rp 4 trillion. Dividends from PT Pupuk Indonesia (Persero) are projected to decrease by 40.37% to Rp 600 billion. Furthermore, dividends from other SOEs are projected to shrink by 3.7% to Rp 2.6 trillion.

Meanwhile, government revenue from PT Telekomunikasi Indonesia (Persero) Tbk's profits is expected to increase by 8.75% to Rp 8.7 trillion in 2021. Dividends from PT Sarana Multi Infrastruktur are projected to rise by 20% to Rp 600 billion.

Total government revenue from SOE profits is estimated at Rp 30 trillion this year. This figure represents a 32.73% decrease from the previous year and will be the lowest in the last decade.

The government targets an 18.6% increase in revenue from SOE profits to Rp 35.6 trillion next year. This includes Rp 19.64 trillion from banking SOEs and Rp 15.97 trillion from non-banking SOEs.