ADB Approves $250 Million Loan to Boost the Performance of PNG’s SOEs

News Release | 05 December 2022
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MANILA, PHILPPINES (5 December 2022) — The Asian Development Bank (ADB) has approved a $250 million policy-based loan to help Papua New Guinea’s (PNG) state-owned enterprises (SOEs) deliver high-quality, affordable services through Subprogram 3 of the ADB-supported SOE Reform Program.

Subprogram 3 supports PNG’s efforts to improve the operational performance and financial sustainability of SOEs and strengthen service delivery. The final subprogram has helped further improve performance and created space for the private sector in critical services such as telecommunications.

“This policy-based program has helped PNG strengthen its legislative and policy frameworks for SOEs, enhanced governance and transparency, and improved the financial position of SOEs in key sectors such as energy, water supply, and aviation,” said ADB Financial Management Specialist for the Pacific Matthew Rees. “We are very happy to see the program delivering results. Supported by recent reforms, SOE Kumul Consolidated Holdings paid the government a dividend of 80 million PNG kina ($22.9 million) this year for the first time since 2015.”

The program is being delivered in close coordination with the Australian and New Zealand governments.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region. 

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Unlocking the Economic and Social Value of Indonesia’s State-Owned Enterprises

This report provides an analysis of Indonesia's state-owned enterprises (SOEs), explores their prominent economic and social role, and explains how further reforms can unlock their commercial and developmental potential.

ADB $500 Million Loan to Support Reforms to Indonesia’s State-Owned Enterprises

  • The State-Owned Enterprises’ Reform Program is aligned with the Indonesian government’s comprehensive and ambitious State-Owned Enterprises Roadmap (2020–2024), which is introducing wide-ranging reforms to transform SOEs and ensure they contribute to the goal of becoming a high-income country by 2045.  

News Release | 17 November 2022
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MANILA, PHILIPPINES (17 November 2022) — The Asian Development Bank (ADB) has approved a $500 million policy-based loan to support reforms to state-owned enterprises (SOEs) in Indonesia. The loan will cover the first subprogram under the State-Owned Enterprises’ Reform Program, which will help Indonesia improve the efficiency and resilience of SOEs and strengthen their corporate governance.

The program is aligned with the government’s comprehensive and ambitious State-Owned Enterprises Roadmap (2020–2024), which is introducing wide-ranging reforms to transform SOEs and ensure they contribute to Indonesia’s goal of becoming a high-income country by 2045.  

“SOEs can play a vital role in fostering inclusive and sustainable recovery from the COVID-19 pandemic in Indonesia,” said ADB Senior Public Management Specialist for Southeast Asia Yurendra Basnett. “But to deliver greater value to the public, their structural weaknesses must be addressed. ADB is pleased to support the government’s reforms to SOEs.”

The program is supporting a reduction in the number of SOEs, while requiring them to focus on their core operations so that they can be financially viable and efficiently provide essential public services. It is also supporting measures to improve the quality of SOE boards, strengthen financial monitoring and disclosure, and help SOEs transition to a climate compatiable business model.

The German development bank KfW will provide cofinancing with a loan equivalent of €300 million ($295.8 million).

Indonesia had more than 100 SOEs in 2021, with combined assets of $610 billion, equivalent to about 53% of gross domestic product. They provide a range of public services, including electricity, pharmaceuticals, air navigation services, food distribution, and logistics. SOEs are important sources of government revenues through dividends and tax payments. SOEs were at the forefront in responding to the COVID-19 pandemic and were a key pillar in the implementation of the Pemulihan Ekonomi Nasional (National Economic Recovery) plan.

While SOEs were adversely impacted by the pandemic, with consolidated net income falling by 89% between 2019 and 2020, their financial performance is improving. From 2020 to 2021, SOEs’ consolidated net profit increased from 13.3 trillion Indonesian rupiah to 124 trillion Indonesian rupiah, return on assets increased from 0.2% to 1.4%, and return on equity increased from 0.5% to 4.5%. The sustained implementation of SOE reforms will be vital in ensuring SOEs support Indonesia’s medium- to long-term development goals.  

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

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Pinjaman ADB $500 Juta Dukung Reformasi Badan Usaha Milik Negara di Indonesia

  • Program Reformasi Badan Usaha Milik Negara (State-Owned Enterprises’ Reform Program) selaras dengan Peta Jalan BUMN 2020–2024 yang menyeluruh dan ambisius, yang memperkenalkan serangkaian reformasi untuk mentransformasikan BUMN dan memastikan kontribusinya terhadap cita-cita Indonesia menjadi negara berpenghasilan tinggi pada 2045. 

News Release | 17 November 2022
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MANILA, FILIPINA (17 November 2022) — Asian Development Bank (ADB) telah menyetujui pinjaman berbasis kebijakan senilai $500 juta guna mendukung reformasi Badan Usaha Milik Negara (BUMN) di Indonesia. Pinjaman tersebut akan mencakup subprogram pertama di bawah Program Reformasi Badan Usaha Milik Negara (State-Owned Enterprises’ Reform Program), yang akan membantu Indonesia untuk meningkatkan efisiensi dan resiliensi BUMN, serta memperkuat kerangka tata kelola perusahaannya.

Program ini selaras dengan Peta Jalan BUMN 2020–2024 yang menyeluruh dan ambisius, yang memperkenalkan serangkaian reformasi untuk mentransformasikan BUMN dan memastikan kontribusinya terhadap cita-cita Indonesia menjadi negara berpenghasilan tinggi pada 2045. 

“BUMN dapat berperan sangat penting dalam mendorong pemulihan dari pandemi COVID-19 yang inklusif dan berkelanjutan di Indonesia,” kata Yurenda Basnett, Spesialis Manajemen Publik Senior ADB untuk Asia Tenggara. “Namun, agar dapat memberikan nilai yang lebih besar bagi masyarakat, kelemahan struktural BUMN harus diatasi. ADB senang dapat ikut serta dalam mendukung upaya pemerintah mereformasi BUMN.”

Program tersebut akan mendukung pengurangan jumlah BUMN, sekaligus mensyaratkan BUMN untuk fokus pada operasi intinya sehingga BUMN menjadi layak secara keuangan dan dapat menyediakan layanan publik esensial secara efisien. Program ini juga mendukung langkah-langkah peningkatan kualitas dewan direksi BUMN, memperkuat pemantauan dan keterbukaan keuangan, serta membantu BUMN bertransisi ke model usaha yang kompatibel dengan iklim.

KfW, bank pembangunan Jerman, akan memberi pembiayaan bersama (cofinancing) dengan pinjaman yang nilainya setara €300 juta ($295,8 juta).

Indonesia memiliki lebih dari 100 BUMN pada 2021, dengan aset keseluruhan senilai $610 miliar, setara dengan sekitar 53% produk domestik bruto Indonesia. BUMN menyediakan beragam layanan publik, termasuk listrik, obat-obatan, layanan navigasi udara, distribusi pangan, dan logistik. BUMN merupakan sumber pendapatan negara yang penting melalui pembayaran dividen dan pajak. BUMN telah menjadi garda depan dalam merespons pandemi COVID-19 dan merupakan pilar utama dalam implementasi rencana Pemulihan Ekonomi Nasional.

Meskipun BUMN juga terkena dampak buruk pandemi COVID-19, kinerja keuangannya terus membaik dibandingkan dengan penghasilan bersih secara konsolidasi yang turun 89% antara 2019 sampai 2020, Dari 2020 sampai 2021, laba bersih secara konsolidasi BUMN meningkat dari Rp13,3 triliun menjadi Rp124 triliun, sedangkan pengembalian atas aset naik dari 0,2% menjadi 1,4%, dan pengembalian atas ekuiti meningkat dari 0,5% menjadi 4,5%. Pelaksanaan reformasi BUMN secara terus-menerus akan sangat penting untuk memastikan bahwa BUMN terus mendukung sasaran pembangunan jangka menengah hingga jangka panjang di Indonesia. 

ADB berkomitmen mencapai Asia dan Pasifik yang makmur, inklusif, tangguh, dan berkelanjutan, serta terus melanjutkan upayanya memberantas kemiskinan ekstrem. Didirikan pada 1966, ADB dimiliki oleh 68 anggota—49 di antaranya berada di kawasan Asia dan Pasifik.

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