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Jakarta, March 21, 2022

PPA Coordinating the Preparation of The Dissolution Regulation of Three SOEs

PT Perusahaan Pengelola Aset (Persero) or PPA as the holder of a Special Power of Attorney (SKK) has taken steps to complete the handling of SOEs that have not been resolved by providing legal certainty for the dissolution of three SOEs, namely PT Industri Sandang Nusantara (Persero) (ISN), PT Industri Gelas (Persero) (Iglas), and PT Kertas Kraft Aceh (Persero) (KKA). The dissolution of the three SOEs was carried out through the decision of the General Meeting of Shareholders (GMS). After the decision to dissolve Iglas, ISN, and KKA, PPA together with the Ministry of SOEs will coordinate with the Ministry of Finance to draft a proposal for the issuance of the government regulation (PP) of dissolution that expected to be published in June 2022.

Dissolution of ISN based on Shareholder Decree on February 2, 2022. Since 2018, ISN’s revenue has only come from tailoring services, so it cannot cover the company’s operating costs. The dissolution of Iglas was determined through a Shareholder Decree on March 10, 2022. Iglas, based in Gresik, East Java, has not operated since 2015.  The government also conducted the dissolution of KKA stipulated through a Shareholder Decree on March 11, 2022. KKA has ceased operations since 2008. The dissolution of the three SOEs will be effective after the issuance of the Dissolution Government Regulation (PP).

SOE Minister Erick Thohir in a press release, said, PPA had conducted a Dissolution GMS for ISN, Iglas, and KKA. The dissolution of the three SOEs is an effort to provide legal certainty, solve problems that have not been resolved, and provide the best solution for The State.

“PPA as the National Asset Management Company (NAMCO) has conducted a series of studies considering various aspects to ensure that the entire process is in accordance with the relevant laws and regulations in the Republic of Indonesia. This dissolution will be effective if the Dissolution Government Regulation (PP) has been signed by the President, which is expected to be issued in June 2022,” Erick said in Jakarta.

President Director of PPA Yadi Jaya Ruchandi, said PPA has conducted a comprehensive study to formulate the best solution strategy for each managed-SOEs. “The restructuring stages that we do are very concerned about various aspects, namely legal, social, business, and finance by prioritizing the principles of good corporate governance. In the process of dissolving these three SOEs, PPA has also conducted socialization and coordination with related parties, including the Ministry of Finance, the House of Representatives, regional governments, as well as the Provincial Government related to the plan to dissolve SOEs, “said Yadi.

 This dissolution is the best solution for the state to create value and optimize SOEs assets. These SOE assets can still be optimized to provide benefits to the community and the local economy if there are parties, including other SOEs, BUMD, and private sectors that Interested in taking over with the auction mechanism through the Office of State Wealth and Auction Services (KPKNL).

President Director of PT Danareksa (Persero) Arisudono Soerono said this dissolution has been studied for a long time and as a holding company of PPA, Danareksa believes that every step taken by the team is certainly Has considered various aspects as an effort to optimize SOE assets and save the economic value of state assets. “This policy of dissolving SOEs  has been through intensive discussions so far, of course,  while still   ensuring its implementation in the  corridors of laws and regulations  that  apply and pay attention to the rights of employees,” added Arisudono.