Freeport-McMoRan's divestment of a controlling interest in Indonesia's Grasberg mine is still planned for 2018. (Antara Photo/Akbar Nugroho Gumay)

Two State Firms to Raise $584m by Selling Private Equity Funds


MARCH 27, 2018

Jakarta. Two Indonesian state companies plan to sell private equity funds to raise Rp 8 trillion ($583.6 million) to strengthen their finances, the government said on Tuesday (27/03).

Infrastructure development is a core part of President Joko "Jokowi" Widodo's economic agenda and state enterprises are taking up most government projects.

Earlier this month, Standard & Poor's Global Ratings highlighted a deterioration in the balance sheets of SOEs that are involved in a government-led infrastructure push.

State-controlled construction firm Waskita Karya and toll-road operator Jasa Marga are in the process of selling some shares in several toll roads in the form of private equity funds, State Enterprises Deputy Minister Ahmad Bambang said in a statement.

The move was aimed at "strengthening companies' finances as they are both currently investing heavily ... in large scale infrastructure projects," Ahmad said, adding that some pension funds had expressed interest in investing.

Waskita and Jasa Marga did not respond to requests for comment.