State budget relocated for economic equality

December, 07 2017 | 00:06 am _MG_0959

Finance Ministry Directorate General of State Assets Isa Rachmatawarta said the state-owned enterprises (SOE) holding company paves the way for the influx of capital from the private sector. Hence, the state budget previously set aside for financing the SOE can be reallocated to priority programs, namely economic equality.

“The state budget should be for social needs the government is developing. The government has the mandate to develop fringe regions, which, based on the commercial point of view, the private sector, and even SOEs, cannot develop. This way we can achieve equality,” he said at the FMB9 gathering on Dec. 5.

The SOE holding company, she said, doesn’t relieve the SOE from its obligations to the state. There will be no drop in payments of taxes and dividends following the process. In fact, the portion of shares owned by the government in the SOE doesn’t shrink. “Shares owned by the state in each SOE remain the Series A shares,” she stated.

She added that the SOE holding company is the initial process to be followed by other more strategic processes. Hence, Indonesia’s SOEs have high levels of competitiveness not only in the country but also in the global stage.