In a strategic plan to beef up Indonesia’s SOEs, the Government of Indonesia establish a grand plan to consolidate PPA and PT Danareksa (Persero) into a holding group of National Asset Management Company (NAMCO). The synergy of the two institutions will act as a centre of excellence in performing restructuring and asset management for SOEs.
In preparing for the strategic plan, PPA has been undertaking series of transformation to enhance its organizational capabilities. In addition to reinforcement in management team and organizational structure, the Company also received strong support from the Government of Indonesia to strengthen its role as well as capital structure.
Strengthening PPA’s role on SOE restructuring, in September 2020 PPA received special power of attorney from the Government of Indonesia through the Ministry of SOEs to lead restructuring initiatives on 23 SOEs. At the same time, the Company issued corporate bond valued IDR642.1 billion, marking its first issuance in the capital market that also signifies a bigger commitment to implement corporate governance.
In April 2021, the Government of Indonesia transferred the rights of minority ownership on 5 companies to PPA. This in-kind injection further strengthened the Company’s capital structure, providing financial flexibility to access capital in the future.
PPA will assist the SOEs under management to pave their way towards sustainable business growth by performing turnaround and restructuring initiatives as well as to divest or liquidate the business in the absence of future growth prospect. All these efforts will further contribute to acceleration of Indonesia’s economic growth.