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The Government Maintains the Sustainability of SoEs during the Covid-19 Pandemic with 4 Modalities

Jakarta, 30/07/2020 Ministry of Finance - State-owned Enterprises (SoEs) also suffered a drastic hit, both in terms of sales and revenue amid the Covid-19 pandemic. As a result, the role of SoEs as agents of development and agents of value creation in the Indonesian economy was disrupted. In response to this, the Government maintains sustainability and encourages efforts to improve SoEs to contribute to the National Economic Recovery (PEN) by providing 4 modalities.

"Supporting SOEs is not merely looking at it with a narrow and short perspective, but actually we hope for broader benefits than just profit and survival of SoEs. We want SOEs to take part in supporting the economy and providing a better life and livelihood for the people of Indonesia," said Director General of State Wealth (Dirjen KN) Isa Rachmatarwata at the Ministry of Finance Corpu Talk Episode 14 event which was initiated in collaboration with the Financial Education and Training Agency (BPPK) and DJKN virtually through the BPPK youtube channel on Wednesday (29/07).

Quoted from the DJKN website, he explained government support or a special investment financing budget, namely 4 modalities to support SoEs, namely the first State Capital Participation (PMN). Second, non-permanent government investment support in the form of debt securities or direct investment. Third, provision of government investment, fourth, placement of funds and guarantees.

"There are four distribution modalities that are described, firstly, State Capital Participation, which in Presidential Regulation Number 72 of 2020 the budget allocation is around Rp31.5 trillion for investment in SoEs. Second, non-permanent government investment support in the form of debt securities or direct investment as stipulated in Presidential Decree 72/2020 with a budget allocation of Rp42 trillion for investment in the Public Service Agency (BLU). Third, the provision of government investment, a budget allocation of Rp19.6 trillion as stated in the Presidential Regulation No.72/2020, and (fourth) support to SoEs through other PEN program modalities such as fund placement and guarantees," he concluded. (nr/ds)