Voices Call for End of State Capital Participation Funds

Friday, 19 August 2016 , 17:00:00 WIB - Economy

The headquarter of the Ministry of State-Owned Enterprises (Edy Susanto/Gresnews.com)

JAKARTA, GRES.NEWS – The Indonesian Forum for Budget Transparency (Fitra) warns the government that State Capital Participation (PMN) funds have been vulnerable to embezzlement. The organization’s Secretary General, Yenny Sucipto, said at her office in Jakarta, Thursday (18/8), that in the field, the organization has found that the fund has not contributed to the state-income and has even been subject to embezzlement by political elites.

"To date, the funds, which were injected into state-run companies, have never been subject to audits this year. Some have even been distributed to political elites, she said, Jakarta, Thursday (18/8).

Yet, the Revised State Budget (APBN-P) 2016 has allocated Rp47.82 trillion for State Capital Participation funds while the total in the Revised State Budget 2015 allocated Rp68 trillion, so the cumulative total in 2015 and 2016 reaches Rp115.8 trillion.

PT PLN, according to her, received Rp10 trillion, which the company said was proposed for the 35,000 MW Program. Turns out the state-run electricity company only used the fund it received to attract investors, instead of using it entirely to support projects, she said.

Meanwhile, Energi Watch Indonesia (EWI) director Ferdinand Hutahaean also questions the distribution of State Capital Participation funds while the nation is posting deficits. This is illogical. Amid the sluggish economy, the government is subsidizing state-owned companies instead of the people, he said.

Ferdinand agrees that the fund has been vulnerable to corruption. The fund is highly vulnerable to embezzlements by elites, he said to gres.news, Thursday (18/8). He also says the government must stop giving out the fund, especially as the programs proposed to obtain the fund has been unclear.

Institute for Development of Economics and Finance researcher Ariyo DP Irhamna also regrets that the programs have been unclear, pointing out to the fact that there has been no measurement to determine whether the programs were a success. The government should introduce a formula every year, he said to gres.news, Thursday (18/8).

Last June, the House of Representatives approved the Revised State Budget 2016, which projected a Rp296.7 trillion deficit or equivalent to 2.35 percent of the gross domestic product (GDP).