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26 April 2022

Shaping the Future as the National Asset Management Company

A little flashback to 2004, PPA was established with the intention and purpose only to manage ex-IBRA assets.  PPA’s resiliency was formed from the beginning as it embodies challenges of managing state assets with agile and resilient people. Now, at the age of 18 years, PPA is increasingly mature to pursue its vision as the only National Asset Management Company (NAMCO) in Indonesia.

To achieve this goal, PPA continues to make various improvements, ranging from business models with 3 new Business Pillars, namely SOEs Restructuring & Revitalization, Banking NPL Management, and Special Situations Fund. PPA also strengthens the foundation through improving risk management, strengthening good corporate governance, all of which are carried out based on AKHLAK values.

Throughout 2020 and 2021, PPA was given greater confidence to become a strategic instrument of the government in increasing the value of SOEs through the Special Power of Attorney of the Minister of SOEs as active shareholders of more than 20 SOEs. PPA was also given capital support through inbreng 5 state-owned minority shares to the PPA worth Rp2.9 trillion.

In 2021, PPA posted solid financial performance that exceeded the 2021 budget, where the Company recorded revenue of 62% above the Budget 2021 and net profit of 350% exceeded the Budget 2021.

In addition, PPA has also reduced balance sheet risk through an increase in Impairment Loss Reserves (CKPN) to Rp2.9 trillion (129% of total non-productive assets) from Rp1.8 trillion (32% of total non-productive assets) at the end of 2020.

The improvement in portfolio asset quality also had a positive impact where the liquidity profile of the PPA as of the end of 2021 experienced a significant increase. This can be seen from the increase in net cash in 2020 of Rp478.8 billion to Rp2.17 trillion in 2020, or an increase of 353% YoY.

PPA’s ability to improve business processes, strengthen risk management and liquidity of the Company managed to increase the confidence of the Rating Agency which gave PPA an AA rating (Fitch Ratings and Pefindo) from the previous A rating by Pefindo in 2020.

In addition to solid financial performance, PPA also received 2 international awards, namely “IFN Restructuring Deal of The Year 2021” and “IFN Indonesia Deal of The Year 2021”.  This award is an international public recognition for the innovative solusi presented by PPA in the management of aset berkualitas rendah Bank Muamalat worth Rp10 trillion. What is proud is that the PPA managed to beat 2 other finalist candidates from Malaysia and Egypt. Not to forget other awards, such as “Public Information Disclosure with the predicate Fairly Informative” and “Ranked 1st Pillar of Economics from the TJSL Awards”.

A number of achievements sparked encouragement for all PPA people to explore the future. With the transformation carried out, PPA as part of Danareksa Holding is ready to become the only NAMCO in Indonesia.

The new role of PPA will be represented through a new face that illustrates PPA’s commitment to continue to grow, innovate, and become an accountable company. The new face of PPA is certainly the choice of PPA People, who also get the blessing of the Minister of SOEs as a Shareholder of PPA.

With the launch of the new PPA logo, we are fully-ready to make new history of the NAMCO.