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View all search resultsIndonesia targets Rp 40 trillion SOEs injection for 2021 recovery
The government will inject Rp 5 trillion into state electricity giant PLN, which will use the funds to develop transmission infrastructure and electricity distribution in villages.
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I
ndonesia will provide Rp 42.38 trillion (US$2.95 billion) in state capital injections (PMN) for state-owned enterprises (SOEs) in 2021 to boost their role in supporting the country’s economic recovery.
Finance Ministry state assets director general Isa Rachmatarwata the PMN for SOEs was expected to spur economic recovery, adding that the government would oversee the disbursement of the funds by the SOEs.
“We want to see SOEs participating in reviving the economy, creating jobs and conducting business activities that will have a multiplier effect,” he told reporters in a press briefing on Friday.
The government will inject Rp 5 trillion into state electricity giant PLN, which will use the funds to develop transmission infrastructure and electricity distribution in villages, according to Isa. Meanwhile, state-owned construction company PT Hutama Karya will receive Rp 6.2 trillion to continue developing the trans-Sumatera toll road and Indonesian Eximbank is planned to get Rp 5 trillion.
“These injections are part of the efforts to speed up economic recovery.”
Indonesia fell into recession for the first time in two decades as the economy shrank by 3.49 percent in the third quarter this year, a second consecutive drop following a 5.32 percent contraction in the second quarter, due to the pandemic.
The economy is expected to shrink by 0.6 percent to 1.7 percent this year, but the government is hopeful that the economy would rebound by 5 percent in 2021.
