Indonesia government proposes 69.8t rupiah capital injection to state firms in 2023

INDONESIA’S state-owned enterprises ministry on Tuesday asked parliament’s approval to inject 69.82 trillion rupiah (S$6.66 billion) worth of capital into some state firms in 2023. The biggest proposed capital injection, 30.56 trillion rupiah, will be given to construction firm Hutama Karya to fund the Trans-Sumatra highway project, according to a document submitted by the ministry to parliament. Utility firm PLN will receive 10 trillion rupiah to finance infrastructure projects including for renewable energy power plants, the proposal showed. The document also listed a 4.1 trillion rupiah capital injection for railway operator PT Kereta Api Indonesia (KAI) to help finance the China-backed high-speed rail line connecting the capital Jakarta with the city of Bandung. The government had obtained parliamentary approval for a 4.3 trillion rupiah capital top-up for KAI for the same project earlier this year. A ministry spokesperson said the 2023 proposal was extended in case the capital injection plan in 2022 falls through due to bureaucratic hurdles. A 3 trillion rupiah capital increase for a holding company for state weapons maker, Defend ID, was also proposed, to fund the construction of a new facility and increase its capacity to produce radars, planes, ships, tanks, ammunitions and for weapon modernisation. REUTERS