Saturday, September 30, 2023

SOEs' Market Valuation Reaches $143 Billion: Minister

Muawwan Daelami
September 14, 2023 | 3:25 pm
State-Owned Enterprise Minister Erick Thohir. (Antara Photo/Dhemas Reviyanto)
State-Owned Enterprise Minister Erick Thohir. (Antara Photo/Dhemas Reviyanto)

Jakarta. Indonesian state-owned enterprises (SOEs) are in overall robust financial health, with a combined market valuation surging to Rp 2,200 trillion ($143 billion) from last year's Rp 1,700 trillion, SOE Minister Erick Thohir said on Thursday.

In addition to their financial strength, SOEs have contributed Rp 80 trillion to the state coffers in dividend payments. The government anticipates this figure to rise to Rp 85 trillion this year, Erick said during a hearing with the House of Representatives' Commission VI, which oversees SOEs, at the legislative building in Jakarta.

"We previously discussed a combined debt of Rp 1,600 trillion by state-owned companies, but the current situation demonstrates that SOEs have a combined capital of Rp 3,200 trillion and a market valuation of Rp 2,200 trillion. These figures outweigh the debt," Erick told lawmakers.

During the hearing, the minister unveiled a plan to inject additional capital of Rp 28.16 trillion into state-run construction companies Hutama Karya and Wijaya Karya, as well as state-owned financing firm Indonesia Financial Group (IFG).


Hutama Karya requires additional capital to complete the construction of the Sumatra toll road network, while Wijaya Karya is actively involved in the megaproject to build the new national capital, Nusantara, in East Kalimantan.

Regarding IFG, the company requires fresh capital to resolve financial issues stemming from the past corruption scandal in the state insurance company, Jiwasraya, where its assets were seized by prosecutors, as Erick explained.

Furthermore, the government is set to invest Rp 12.8 trillion in the railway company KAI and an additional Rp 11 trillion in train carriage builder INKA. This investment follows the introduction of new railway systems, including the Great Jakarta Light Rail Transit (LRT) and the Jakarta-Bandung High-speed Train.

Tags: Keywords:


News 10 hours ago

77 Indonesians Could Be Spared Death Penalty in Malaysia

Malaysia recently decided to scrap the mandatory death penalty for a range of serious crimes, including drug trafficking and murder.
Tech 11 hours ago

South Korean League of Legends Team Wins Gold at Asian Games

Esports was first featured at the last Asian Games in Jakarta, Indonesia, as a demonstration sport and proved incredibly popular.
News 13 hours ago

Jakarta Governor Clarifies Social Media Post Regarding Seawall Cracks

He clarified that the video shared on social media was an old one, showing an embankment wall in Kalibaru.
News 13 hours ago

US Government Shutdown Almost Certain

McCarthy’s right-flank Republicans refused to support the bill despite its steep spending cuts of nearly 30 percent to many agencies.
Business 15 hours ago

GPS Distributor Sumber Sinergi Holds IPO

Sumber Sinergi is a distributor of global positioning system devices for automobiles that also offers installation services.