The Ministry of Finance will increase the allocation of state capital participation (PMN) this year for two state-owned enterprises (BUMNs) and one institution, director general of state assets at the ministry, Isa Rachmatarwata, said.
"Actually, it has been conveyed for the needs of corporations and additional capital for SOEs or institutions assigned for corporate underwriting," Isa Rachmatarwata said at a hearing meeting with Commission XI of the Indonesian Parliament in Jakarta on Monday.
He said this was done through the issuance of a decree by the Minister of Finance — KMK No.500 / 2020 — which was only enacted last week.
Rachmatarwata informed that the additional PMN allocation of Rp1.57 trillion will be made to PT Penjaminan Infrastruktur Indonesia, or PII (Persero); Rp2 trillion to PT Bio Farma (Persero); and, Rp5 trillion to the Indonesian Export Financing Agency (LPEI).
"We plan to add state capital participation for LPEI and PII because both have been asked to carry out underwriting for corporations," he explained.
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Meanwhile, he said, the additional allocation for Bio Farma was originally planned for next year, but due to pressing requirements such as vaccine development, it was accelerated.
“The (fund injection) plan was for 2021, but because there is a need to accelerate it, the plan will be updated," he remarked.
Earlier on November 6, 2020, Rachmatarwata had explained that the funds injection for Bio Farma was being carried out in the context of procuring drugs, COVID-19 vaccines, and developing health infrastructure.
The PMN will be given entirely to Bio Farma and the government has handed it the authority to determine how to distribute the funds to PT Kimia Farma Tbk and PT Indonesia Farma Tbk.
"We are adding it to the 2020 State Budget because it is relevant to handling COVID-19," he stated.
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