JAKARTA - The Indonesian government is planning a US$8.63 billion bailout for 12 state-owned enterprises (SOEs) in the form of cash compensation and working capital investments to cushion the blow of the coronavirus (COVID-19) pandemic.

As reported by Reuters, Ministry of Finance documents presented to the House of Representatives on May 11, 2020 show that the government has proposed to provide financial support to the SOEs.

While a Ministry of Finance spokeswoman confirmed the authenticity of the documents on Sunday (17/5), she added that they still require approval from President Joko “Jokowi” Widodo.

As previously reported by IDNFinancials.com, flag carrier PT Garuda Indonesia (Persero) Tbk (GIAA) is due to receive a US$1 billion bailout from the government to avoid a debt default. According to Deputy State-owned Enterprises Minister Kartika Wirjoatmodjo, the fund will be used to restructure Garuda’s US$500 million sukuk due June 3 while the remaining US$500 million will be used as working capital.

In addition, power utility provider PT PLN (Persero) will receive Rp 35.42 trillion in cash compensation while energy firm PT Pertamina (Persero) will receive Rp 43.91 trillion paid in installments until 2022. Steelmaker PT Krakatau Steel (Persero) Tbk (KRAS) will also receive Rp 3 trillion to be used as working capital.

Construction firm PT Hutama Karya (Persero) will receive Rp 7.5 trillion in capital injection, while insurance holding company PT Bahana Pembinaan Usaha Indonesia (Persero) will receive Rp 6 trillion. (MS)