11 State-Owned Enterprises Had Negative Equity in 2018

Poor management has caused several State-Owned Enterprises (SOEs) to suffer losses, eroding their equity to negative levels. Of the 113 SOEs, 11 had negative equity (capital) in 2018. One SOE with negative capital was PT Asuransi Jiwasraya (Persero), amounting to Rp 10.24 trillion in 2018. Its liabilities reached Rp 47.06 trillion, while its assets were only Rp 36.8 trillion. For information, this state-owned insurance company experienced a loss of Rp 15.83 trillion in 2018.

Jiwasraya's liquidity pressure has increased as the valuation of its portfolio assets has shrunk. As of September 2019, the liabilities of this insurance company, 100% owned by the government, reached Rp 49.6 trillion, while its assets were only Rp 25.68 trillion. This means that the equity of this SOE further decreased to minus Rp 23.9 trillion.

(Read Databoks: 12 SOEs with the Largest Assets in 2018)

The SOE with the second-largest negative capital was PT Merpati Nusantara Airlines (Persero) at Rp 9.767 trillion, followed by PT PANN (Persero) with minus Rp 3.55 trillion, and PT Sang Hyang Seri (Persero) with minus Rp 1.4 trillion.