PMN Boosts the Four SOE’s Performances

State Capital Participation for Jasa Marga Tbk (JSMR), Krakatau Steel Tbk (KRAS), PP Tbk (PTPP) and Wijaya Karya Tbk (WIKA) worth 9 trillion IDR this year will boost the four SOEs’ performances. After getting PMN, WIKA’s revenue is estimated to soar by 58% to 27,1 trillion IDR while KRAS’ revenue rises by 23% to US$ 1,6 billion.

The government projected WIKA’s net profit this year will increase by 45% to 907 billion IDR. Wika’s revenue in 2020 is predicted to reach 59 trillion IDR with a net profit of 2,53 trillion IDR. KRAS is also estimated to record net profit of US$51 million this year compared to last year’s net loss worth US$320 million.

Finance Minister Sri Mulyani said PMN was reduced through the mechanism of rights issue. The commission VI of the House of Representatives approved PMN and rights issue for the four SOEs with a total value of 14,3 trillion IDR. The funds will be used for infrastructure projects, steel mills, and power plants.

The market’s response towards PMN agreement is positive. On Wednesday (24/8), KRAS’ share had strengthened by 6,47% to 905 IDR and the strengthening still continues on Thursday (25/8) to 920 IDR. WIKA’s share in trading on Thursday morning had strengthened by 0,6% to 3.270 IDR, JSMR rose by 2% to 5.150 IDR and PTPP increased by 1,1% to 4.550 IDR. (*)