Govt to Save State-Owned Construction Companies Despite Critics

By Editorial Team 18/08/2023
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Summary

The government plans to rescue the state-owned construction companies that are on the verge of bankruptcy due to their debt problems.

The government will use a special budget from the state capital injection (PMN) fund, which will be channeled to companies that have restructured their debts.

Finance Minister Sri Mulyani Indrawati told a press conference on the 2024 Draft Budget and Financial Notes at the Taxation Directorate General Building in Jakarta on Wednesday. “We will be using PMN funds to restore the SOEs' condition.”

She said that the PMN fund was part of a joint commitment between the Finance Ministry, the SOE Ministry, and the Public Works and Housing Ministry to improve the financial health of the state-owned enterprises.

The budget for saving the state-owned construction companies will come from the infrastructure budget, which also includes financing for land acquisition and PMN for other troubled state-owned enterprises.

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