State-Owned Enterprises (SOEs) in Indonesia have been criticized for their inability to utilize State Equity Participation (PMN) funds allocated to them for infrastructure development projects. According to a report by the Audit Board Audit Agency (CPC), 13 SOEs were unable to utilize the PMN funds allocated to them between 2015 and 2016.
The total value of PMN disbursed during that period reached IDR 10.49 trillion, with Rp 10.07 trillion allocated for projects that have not been completed and Rp 424.11 billion for operations that have not been utilized. This revelation has raised concerns about the reckless assignment of SOEs for infrastructure development projects.
Yusuf Wibisono, the Director of Indonesia Development and Islamic Studies (IDEAS), expressed his concerns about the government’s strategy of assigning SOEs to carry out national strategic projects (PSN). He argued that the government’s ambition for infrastructure development has not been matched by the ability to reform the state budget and provide the necessary fiscal space.
Yusuf explained that the government’s inability to significantly increase capital expenditure and the difficulty in attracting private sector participation have led to the assignment of SOEs to build PSN projects with only initial capital in the form of PMN.
PMN has been a key strategy for infrastructure development since President Joko Widodo took office in 2014. The government has disbursed an average of Rp 60 trillion in PMN per year between 2015 and 2023, mostly for SOEs carrying out PSN duties, particularly in toll road projects such as Trans Java and Trans Sumatra.
The BPK report highlighted that PMN funds must be used in accordance with their designated purpose as outlined in a joint study. However, despite being used according to the usage plan, there are still projects funded by additional PMNs that have not been fully completed.
In 2015, PMN funds were disbursed to 35 SOEs totaling Rp 44.32 trillion, and in 2016, Rp 41.81 trillion was disbursed to 14 SOEs. The examination of the document on the use of additional PMN revealed that there were additional PMNs from 2015 and 2016 that had not been fully absorbed.
The BPK report identified 13 SOEs with an additional PMN value of IDR 11.67 trillion and an unrealized IDR 3.74 trillion. The absorption of additional PMN funds varied between 28.03% and 99.11%, while the progress of physical work varied between 38.67% and 99.67%.
Deputy Minister of State-Owned Enterprises, Pahala Mansury, briefly commented on the BPK report, stating that the projects could still be completed, particularly for PMN allocated to PTPN and Bulog, which are targeted to be completed in the next 6-12 months.
The stagnant utilization of PMN funds by SOEs raises concerns about the effectiveness of infrastructure development projects in Indonesia. The government needs to address the challenges in reforming the state budget and attracting private sector participation to ensure the successful implementation of PSN projects.
How can the Indonesian government ensure a more efficient allocation of PMN funds for infrastructure projects?
Iculty in managing and utilizing PMN funds has hindered the progress of infrastructure projects. He called for a comprehensive reform of the fiscal system and a more efficient allocation of resources to ensure that infrastructure development is carried out effectively.
The report by the Audit Board Audit Agency also revealed that the unable utilization of PMN funds was due to various reasons, including delays in project implementation, lack of coordination between SOEs and relevant government agencies, and inadequate project management.
In response to the report, the Ministry of State-Owned Enterprises (BUMN) has vowed to address the issues and improve the utilization of PMN funds. The ministry stated that it will conduct an evaluation of the projects and take necessary measures to ensure that the allocated funds are properly utilized.
The inefficient utilization of PMN funds raises concerns not only about the effectiveness of infrastructure development but also about the accountability and transparency of SOEs. Critics argue that stricter oversight and monitoring of the funds’ utilization are needed to prevent further wastage and mismanagement.
In conclusion, the inability of SOEs in Indonesia to utilize PMN funds for infrastructure development projects has raised concerns about the efficiency and effectiveness of these projects. It highlights the need for comprehensive reforms in the fiscal system and stricter oversight to ensure the proper utilization of allocated funds.
This article sheds light on the alarming inefficiencies in the utilization of PMN within Indonesian State Owned Enterprises, as highlighted by the Audit Board Audit Agency report. Identifying and rectifying such shortcomings should be a priority for better governance and financial management in these entities.
This article highlights the concerning inefficiencies in the utilization of PMN within Indonesian State Owned Enterprises. The findings from the Audit Board Audit Agency Report are concerning, and it is crucial for the government to address these issues promptly. Efforts must be made to improve utilization practices to ensure optimal use of resources and improve overall efficiency in these enterprises.