Two State Firms to Raise $584m by Selling Private Equity Funds

Two State Firms to Raise $584m by Selling Private Equity Funds


Jakarta — Two Indonesian state companies plan to sell private equity funds to raise Rp 8 trillion ($583.6 million) to strengthen their finances, the government said on Tuesday (27/03). Infrastructure development is a core part of President Joko Widodo’s (Jokowi) economic agenda and state enterprises are taking up most government projects. Earlier this month, Standard and Poor’s Global Ratings highlighted a deterioration in the balance of sheets of SOEs that are involved in government-led infrastructure push. State-controlled construction firm Waskita Karya and toll road operator Jasa Marga are in the process of selling some shares in several toll roads in the form of private equity funds, State Enterprise Deputy Minister Ahmad Bambang said in a statement. The move was aimed at “strengthening companies’ finances as they are both currently investing heavily, in large scale infrastructure projects,” Ahmad said, adding that some pension funds had expressed interest in financing.

Source: jakartaglobe:id/Reuters