Indonesia plans to inject USD2.5bm into SOEs in 2021 to stimulate economy, resolve Jiwasraya scandal

  • The government has proposed providing IDR37.38tr (USD2.5bn) in capital injections for state-owned enterprises (SOEs) in 2021, some of which will be used to resolve the investment mismanagement scandal involving state insurer PT Asuransi Jiwasraya.
  • During a meeting with House Commission XI overseeing financial affairs on 15 Sep 20, Finance Minister Sri Mulyani Indrawati said the capital injections were part of the government’s investment plan for 2021.
  • “[The capital injections] will be used to finance the development of the Sumatra toll road, tourism development and [to fund] the opening of Batang industrial area, among other projects,” she told lawmakers, referring to the Trans Sumatra toll road mega project and the development of the new industrial zone in Central Java.
  • The government plans to inject funds into eight SOEs, including IDR20tr for financing firm Bahana Pembinaan Usaha Indonesia (BPUI), IDR2.25tr for secondary mortgage market company PT Sarana Multigriya Finansial, IDR6.2tr for construction company PT Hutama Karya and IDR5tr for electricity giant PLN.

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