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Jakarta, April 28 2021

Government of Indonesia Transfers 5 Minority Shares to Support PPA Becoming National Asset Management Company (NAMCO)

PT Perusahaan Pengelola Aset (Persero) (PT PPA) back to back in receiving trust from the Government of Indonesia (GOI) which has transferred the minority state-shareholders rights over 5 (five) companies worth of  Rp2.95 trilion, i.e. PT Indosat Tbk, PT Prasadha Pamunah Limbah Industri (PPLI), PT Bank KB Bukopin Tbk, PT Kawasan Industri Lampung, and PT Socfin Indonesia. The ownership of these 5 (five) minorities shares will strengthen PT PPA’s capital structure which is currently in a joint transformation with PT Danareksa (Persero) in the Cluster of Danareksa-PPA heading for National Asset Management Company (NAMCO).

Government through The Ministry of State-Owned Enterprises (SOEs) has officially transferred the right of minority shares from the state ownership to PT PPA today (28/4) in The Ministry of SOEs Building, Jakarta. The Minister of SOEs Erick Thohir directly attended and signed the document of minority shares transfer over 5 (five) companies to PT PPA. This event is a follow-up over the publishing of Government Law Number 51 of 2021 regarding The Additional Capital Participation of The Republic of Indonesia to PT PPA’s Share Capital and The Minister of Finance Decree Number 135/KMK.06/2021 regarding The Stipulation of Value of Additional State Capital Participation from GOI to The Share Capital of PT Perusahaan Pengelola Aset.

Here below is the ownership composition of the minority shares over 5 companies which has been transferred to PT PPA:

The Minister of SOE, Erick Thohir said that the execution the transfer (inbreng) of state ownership on minority shares is the implementation of priority program from The MSOE specifically related to the investment enhancement program by optimizing the asset value and creating the healthy investment ecosystem. This inbreng of shares is part of the transformation from The MSOE to be more focus and optimal in the management of SOE.

“Through the transfer of shares ownership, it is expected that the management of PT Indosat Tbk, PT Prasadha Pamunah Limbah Industri, PT Bank KB Bukopin, PT Kawasan Industri Lampung, and PT Socfin Indonesia will be more effective, optimized, and professional. The additional minority shares from the Ministry of SOEs to PT PPA surely would heightened the capital of PT PPA to be able to run the scale up as well as the restructuring of SOEs,” said the Minister of SOEs in his greetings.

The Minister of SOEs continued, the transfer of minority companies to PT PPA would be beneficial to optimize the asset that could give lots of advantages to The Country as the owner of 100% shares in PT PPA. Besides that, this matter could also be the funding sources to the restructuring program and/or the revitalizing to reduce the dependency from National Revenues and Expenditures Budget (APBN).

“The positive impact to PT PPA regarding the shares transfer of minority companies is the existence of additional asset in the form of shares and revenue from dividend of those shares. Furthermore, the additional asset and future cash flow coming from dividend would increase the capital of PT PPA that could be used to leverage to funding sources to support its restructuring and revitalizing of SOEs program as well as other business activities of PT PPA,” the Minister of SOEs continued.

The President Director of PT PPA, Yadi Jaya Ruchandi stated that, “The transfer of the minority shares rights over these 5 (five) companies is a big mandate for PT PPA to manage and optimize every potential from the asset which are owned by The State. The ownership of minority shares over these 5 (five) companies are expected to reinforce the capital structure, to boost the capital flexibility, and to increase the business capacity of PT PPA in becoming NAMCO”.

“With the existence of equity participation, PT PPA would get the dividend and have the discretion of leveraging over these 5 (five) companies. The capital structure of PT PPA could be more solid and able to support our roles in the SOEs’ restructuring, supporting the national banking system, as well as positively impacting the efficiency of APBN – since it did not disburse the cash capital investment of the state,” says Yadi.

In this event of signing agreements, PT Danareksa (Persero) as holding nominee of SOE under Darakesa-PPA cluster also directly attended to witness and support the new mandate of PT PPA.

The President Director of PT Danareksa (Persero), Arisudono stated, “Danareksa view this as an early positive step to support the transformation of PT PPA. With the experiences and records that are owned so far by PT PPA, we are sure that PT PPA could also optimize the management as well as in maximizing the company’s potential through the transfer of minority shares.”

Moreover, the inbreng minority shares over these 5 (five) companies also has positive impact to the society through the synergy of Social and Environmental Responsibility program specifically on the improvement capacity and social activities, particularly in the recovery of national economic.

Currently, PT PPA along with Danareksa are transforming to NAMCO in which PT PPA would focus to 3 (three) pillars in business model, i.e., restructuring SOEs, managing the Non-Performing Loan, as well as the innovative and effective solutions of Special Situations Fund (SSF). This transformation step is enhanced with the mandate from The Ministry of State Owned Enterprises through Power of Attorney to handle 23 SOE, and also receiving the the treansfer of state minority shares through the publication of Government Law Number 51 of 2021.

“PT PPA is the only SOE company trusted by the GOI to manage the national corporation asset in order to create the sustainable ecosystem for State Owned Enterprises. With the trust that is given to us, we are committed to becoming the advanced turnaround company in Indonesia and a trusted partner in the sector of restructuring, investment, and managing asset,” concludes Yadi.