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Five SOE Rights Issues to Strengthen Funding: Minister

Don’t add capital to the sunset industry.

JAKARTA (ANTARA) – State-Owned Enterprises (SOE) Minister Erick Thohir said his ministry has increased the capital of five state-owned enterprises through a right-issuing scheme to keep the companies financed.

“It should no longer be called debt. There are different types of corporate attempts, whether they are raising capital through the role of government, corporate actions in the market, strategic partnerships, etc.,” he said Thursday. said in a statement issued here.

There are a total of five state-owned enterprises: PT Bank Tabungan Negara (BTN), a state-owned bank, PT Krakatau Steel (KS), a steelmaker, PT Waskita Karya Tbk, a construction company, PT Garuda Indonesia, a state-owned airline, and PT Adhi, a construction company. Execute rights issuance. Karya Tbk.

The minister said the government will only provide additional capital to companies with high future prospects and potential.

“Don’t add capital to the sunset industry,” he said.

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For example, the government has provided capital to BTN. This is because the company focuses on providing mortgage loans to Indonesian people, especially young people, through its Millennial House Program, a cooperation between banks and state-owned railway company PT Kereta Api Indonesia (KAI). ), he added.

He said he expects the implementation of the program, which has completed four projects so far, could be strengthened as the country’s housing demand is projected to reach more than 1 million units. I was.

Meanwhile, the provision of additional capital to PT Krakatau Steel aims to strengthen the domestic steel industry ecosystem as Indonesia still needs to import goods to meet domestic demand.

Thohir said some of the imported steel was smuggled.

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His ministry was therefore aimed at improving the performance of the company, which had previously suffered losses for eight years. However, in the second quarter of 2021, the company made a profit of his Rp 800 billion.

SOE is currently working with South Korean company Posco to produce vehicle components to support the electric vehicle industry in Indonesia.

Therefore, the Minister said PT KS is a promising company to be provided with additional capital.

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https://en.antaranews.com/news/245205/rights-issue-of-five-soes-to-bolster-funding-minister Five SOE Rights Issues to Strengthen Funding: Minister

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