REPUBLIKA.CO.ID, JAKARTA -- The Commission VI of the Parliament approved only Rp37.276 trillion in capital injection (PMN) for 27 state companies.
Earlier the government proposed Rp72 trillion in PMN for 35 state companies for 2015.
The Commission VI approved only PMN for 27 state companies with certain notes and recommendations, Commission VI chairman Achmad Hafisz said.
The Rp37.276 trillion PMN will include Rp36.07 trillion in cash and Rp1.206 trillion in non cash, Hafsiz said at a working meeting with Minister for State Companies Rini M Soemarno here on Tuesday.
Hafisz said the Commission disapproved PNM for PT Bank Mandiri Tbk, PT Rajawali Nusantara Indonesia (RNI), PT Djakarta Lloyd, liima PTPN yaitu PTPN VII, PTPN IX, PTPN X, PTPN XI, PTPN XII instead PNM is given for PTPN III which is the holding company for state plantation companies.
Deputy chairman of the Commission Azman Azam said the decision of the Commission is based on comprehensive discussions and business plans proposed by the companies.
"We also stressed that it is important for the recipients of PNM to apply GCG. Tight control is needed in the use of PNM in line with the business plans of the respective companies," he said.
Rini M Soemarno said she was not disappointed with the rejection approval of PNM for some of the companies as the Commission gave more importance to the implementation of program in infrastructure sector.
There was still room for proposing PNM for three other state companies -- PT Askrindo, Perum Jamkrindo and PT PLN, the minister said.
"We have sent a letter to the Finance Minister that the proposal for additional companies to receive PNM could be approved," she said.
Observers, however, have expressed regret with the the rejection of PNM for state lender Bank Mandiri, the country's largest bank.
The government proposed a PNM of Rp5.6 trillion for Bank Mandiri.
Former secretary of the minister for state enterprises (BUMN) Said Didu said the rejection leave state banks in difficulty for expansion and in financing development projects of the government.
Didu said state banks would need large additional capital to be able to finance big projects of the government especially infrastructure projects.
"State lenders have not enough fund available if PLN (state power utility company) and Pertamina (state oil company) need fund for their projects," he said earlier.
With state banks short of capital it is feared foreign banks would gain greater market share to exploit the huge credit market potential in Indonesia, he said.
"State banks will face greater difficulty in market competition," he said.
Said Didu said he wanted to warn the Parliament that rejection of capital injection for Bank Mandiri would allow foreign banks to take over the financing role in the country.
He called on the government to maintain the spirit to have strong state banks in facing the implementation of ASEAN Economic Community (AEC) by the end of this year.
Under AEC, most of the tariff barriers among the 10-member countries would be abolished.
He said with the capital injection Bank Mandiri is expected to emerge as a Qualified Asean Bank (QAB).
Malaysia and Singapore already have banks with the category of QAB that would be free to expand to any country in ASEAN without any restriction, Didu said.
Meanwhile, Head of Strategic Research and Analysis Network of Market Investor (NMI) Reagy Sukmana rejection of capital injection for Bank Mandiri will leave Indonesia a minor player in banking business in the region.
"Our state companies are not only foreign exchange earners but also agents of development," Reagy said.
He said he is optimistic Bank Mandiri, as the country's largest lender, could play a greater role in financing infrastructure projects to accelerate economic development.
"The Parliament members should be more visionary. If they fear misuse of the fund, they could tighten control, instead of rejecting the capital injection," he said.
Economist from the Management and Economics Development Studies (Mecode Studies) Augustinus Mangasa Sipahutar said the Parliament should approve proposed capital injection particularly for state lender Bank Mandiri.
"Bank Mandiri is a healthy bank, It needs capital injection not because it is unhealthy but it needs more capital for expansion," Augustinus said.
Capital injection should be given when it performs well that it has greater strength for expansion including abroad, he said here on Thursday.
"Bank Mandiri has good financial indicators . It meets all financial ratios as required by Bank Indonesia. This is an opportunity for the Parliament and the government to strengthen state banks," he said.
Based on data from Bank Indonesia, the government shares in Bank Mandiri is only 60 percent, he said.
The government control of the bank could be reduced to as low as 51 percent if it seeks additional capital from stock market instead of PNM from the government.
If the Parliament and the government failed to back up the plan to strengthen the capital of state banks, foreign banks could expand their banking market and increase domination in the country, he said.
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