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Jakarta, 15 June 2021

PPA Transformation Journey to be a National Asset Management Company (NAMCO)

After 17 years since its establishment, PT Perusahaan Pengelola Aset (Persero) (PT PPA/The Company) is now transforming to be a National Asset Management Company (NAMCO). The Company would focus on 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).

Expanding its role beyond restructuring and revitalization, PPA is mandated to perform turnaround strategy to strengthen SOEs. Through power of attorney from the ultimate shareholder, i.e. the Government of Indonesia, PPA oversees SOEs under management to shape their operational and financial strategy in achieving sustainable business growth. 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.

PPA also plays role in handling and managing the NPL assets of banking companies. This effort is expected to assist the Banks in divesting loans that can hinder their operational and financial performance as well as their ability to raise capital in the future.  Under off balance sheet mechanism, PPA will use AMC (SPV) as a tool in managing NPL portfolio.

PPA’s unique position allows The Company to help corporations accelerate businesses through a form of innovative and effective financing solutions namely Special Situations Fund (SSF). The Company provides structured financing in various formats, among others mezzanine debt, bridging financing, convertible debt. The financing solution offered is tailored to the client’s needs and requirements throughout business cycles, featuring flexible terms of collateral and efficient business process. PPA also provide advisory as part of its services.

PPA has been undertaking series of transformation to strengthen its organizational capabilities. In addition to reinforcement in management team and organizational structure, the Company also took strategic initiatives to strengthen its role as well as capital structure.

As the only institution mandated by the Government of Indonesia to perform restructuring and asset management for SOEs, PPA is committed to becoming the advanced turnaround company in Indonesia and a trusted partner in the sector of restructuring, investment, and managing asset. All these efforts will further contribute to acceleration of Indonesia’s economic growth.

PPA was known as the Government’s arm that had successfully managed assets ex-IBRA (Indonesian Bank Restructuring Agency) post Indonesia’s financial crisis 1997-1998. The Company later expanded into a state-owned asset management company with specialization in SOE restructuring and revitalization, investment activities, and SOEs asset management activities. PPA currently undertakes strategic transformation into a NAMCO, performing turnaround for SOEs with focus on SSF, and NPL management.

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