RESTRUCTURIZATION AND/OR REVITALIZATION

The aim of restructurization and/or revitalization (“R/R”) is to increase the performance and value of the State-Owned Enterprise (“SOE”) in a long term sustainability with respect to commercial aspects of the SOE.

The SOE that will be restructured and/or revitalized is decided by Minister of State-Owned Enterprises after having approval from Minister of Finance (“MoF”) and the process of R/R is referred to Minister of SOE (“MSOE”) Regulation No. 01/MBU/2009 concerning Guidance of the Restructurization and Revitalization Process of State-Owned Enterprise by PT PPA.  

Notes:

• Restructuring and/or revitalization Committee (“R/R Committee”) consists of MSOE, MoF and related Minister(s), representatives of Ministry of SOE, Ministry of Finance, related institutions and relevant experts (chaired by MSOE);
• Legal lending limit for R/R of each SOE is 15% of PPA Paid-up Capital (IDR 270 Billion); and amount exceeding that amount needs approval from MoF.

Explanation:

• SOE proposes plan of R/R to MSOE, equipped with Letter of Commitment addressed to PPA;
• MSOE assigns PPA to exercise due diligence of the SOE;
• PPA submits the result of the due diligence to the MSOE;
• MSOE submits the result to the R/R Committee for evaluation;
• result of the Evaluation is re-submitted to the MSOE;
• MSOE submits the evaluation to MoF;
• based on the approval from MoF, MSOE assigns PPA to implement R/R;
• PPA and the SOE sign R/R agreement.

Status of R/R of SOEs in PPA: