BUMN (state-owned enterprise) booked a net profit of up to Rp. 126 trillion in 2021. According to the Minister of BUMN, Erick Thohir, this achievement was obtained because the financial performance is getting better and healthier. Erick believes that the BUMN performance has a major impact on society and the country. According to him, if BUMNs are healthy, their contribution will increase.
Erick explained that the increase in SOE’s net profit was accompanied by a decrease in the ratio of interest-based debt to embedded capital which fell to 35 percent, as well as the ratio of interest-based debt to EBITDA which fell from 4.5 times to 3.5 times in 2021.
“Alhamdulillah, thanks to the transformation by prioritizing good corporate governance and risk management, efficiency, and professionalism, the financial performance of SOEs is getting better and healthier. Net income has increased significantly, while the funding structure and debt repayment capacity of SOEs continue to strengthen, at the company ratio. with an investment-grade rating,” said Erick in an official statement, Friday (8/7/2022).
Erick continued that the Ministry of SOEs carried out several strategic initiatives to increase the debt capacity and capital structure of SOEs.
First, debt restructuring of SOEs such as Waskita Karya, PTPN III, and Garuda Indonesia, all of which are SOEs that have weakened financial conditions due to Covid-19.
“Strict steps have been taken in 2021 by negotiating with creditors, with restructuring agreements that have been made for Waskita and PTPN III in 2021. For Garuda, although the plan for the agreement has not been approved in 2021, it has just received approval for the restructuring plan in PKPU, ” he said.
Erick continued that the Ministry of SOEs is also focusing on measures to reduce debt on the balance sheet by strengthening the equity position in strategic SOEs affected by Covid-19.
The total investment and government support for SOEs in 2021 will reach IDR 68.9 trillion. More than 80 percent of the total debt is allocated to strategic SOEs in carrying out assignments, including assignments for National Strategic Projects.
“We are also focusing on increasing EBITDA to strengthen our debt service capacity, by increasing sales and increasing operational efficiency and margins. Unaudited operating income will grow at around 19 percent in 2021, while net profit margin will increase from 0.7 percent in 2020 to 5.6 percent in 2021,” he said.