Indonesia to inject 54t rupiah into 24 state firms in revised budget

JAKARTA, June 2 — The Indonesian government plans to inject 53.98 trillion rupiah (RM16.387 billion) of capital into 24 state firms this year, pending approval by the parliament, according to a finance ministry document on revisions to the 2016 state budget.

The document, which was uploaded today, mentioned that the bulk of the money will go to state utility firm PT Perusahaan Listrik Negara (PLN), which could receive 23.56 trillion rupiah for construction of more power plants.

Also on the government’s list for capital injections are state construction firm PT Wijaya Karya.JK, toll road operator PT Jasa Marga Tbk, steel producer PT Krakatau Steel Tbk and state property firm PT Pembangunan Perumahan Tbk, among others.

Last year, parliament blocked a government plan for 40.43 trillion rupiah of capital injection into the same 24 state firms in 2016.

But it said the government can propose the same plan again in a revised budget if it can provide stronger reasons.

Wijaya Karya’s corporate secretary Suradi told Reuters yesterday the firm plans a rights issue if the parliament approves the government’s 4 trillion rupiah injection plan.

Parliament will hold its first hearing into the budget revisions later today.

Parliamentary debates on budgets typically take about a month before approval. — Reuters  

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