March 25, 2021 | Invest Indonesia

Ministry to Issue Rules to Make State Capital Funding Transparent

Source from: Antara News

Original News HERE

The Ministry of State-Owned Enterprises (BUMN) will issue a ministerial regulation (PM) to improve transparency in proposing and utilizing budget allocations for state capital injections (PMN) into SOEs.

SOE Minister Erick Thohir has emphasized that the regulation will make PMNs transparent and accountable, so each state capital injection into SOEs can be tracked easily.

“Accountability and transparency principles are absolute since they are fundamental to PMN spending. Each rupiah in the state capital must be accounted for, effective, and right on target,” Thohir stated in an official press release issued here on Wednesday.

To build accountability, transparency, and effectiveness in PMN spending, the SOEs Ministry has formulated guidelines for allotment and supervision, including the penalty if there are any violations.

The regulation underlines that the PMN budget can only be allocated for performing tasks, restructuring, and corporate actions, according to the ministry. Minister Thohir will directly supervise the process to ensure the allotment of funds.

The mechanism will allow stakeholders, including ministries, institutions, SOEs, and supervisors, to understand the urgency behind PMNs, which are mainly designed to support the SOEs’ business strategy.

“The main point is no more hidden process, all has to be open, since good corporate governance means accountability and transparency. Good corporate governance is the foundation to build a good corporation’s performance,” Thohir remarked.

As reported earlier, the Finance Ministry has allocated Rp42.3 trillion as the PMN budget for SOEs for this year. The budget allotment is designed to support national economic recovery in the wake of the COVID-19 pandemic, it said.

Reporter: Juwita Trisna Rahayu
Editor: Suharto, Ine