Finance Minister Purbaya proposes Ministry of Finance take over PNM from Danantara

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa stated that his ministry is currently proposing to the Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara Indonesia) to take over the management of PT Permodalan Nasional Madani (PNM). PNM is a subsidiary of PT Bank Rakyat Indonesia (Persero) Tbk (BRI), which is now a member of Danantara Indonesia. “I am proposing to Danantara that PNM be given to us (the Ministry of Finance). PNM Madani to us, then we will make PNM the distributor of KUR (People’s Business Credit),” said Purbaya Yudhi Sadewa in Jakarta on Monday. He stated that his side plans to make PNM a subsidiary of one of the Ministry of Finance’s Special Mission Vehicles (SMVs), such as PT Sarana Multi Infrastruktur (SMI) or the Government Investment Centre (PIP). He noted that there are many reports from SME actors who have difficulty accessing affordable credit services. In addition, he highlighted the high costs involved in KUR distribution through banks. “If KUR is (distributed) through banks, we pay interest up to 18 percent. The money disappears (is used to pay interest), about Rp40 trillion every year,” said Purbaya. Purbaya hopes to turn PNM into a major bank with Rp200 trillion in capital within five years. “So, our budget (expenditure) does not increase (remains Rp40 trillion every year), but it (PNM) lends (the budget) as revolving funds with low interest. So, the Rp40 trillion does not disappear,” he explained. Besides a dedicated bank, Purbaya stated that his side will also build an integrated SME development ecosystem equipped with advisory teams, marketing teams, training facilities, and credit guarantee institutions. Nevertheless, his side will continue to refine the plan and discuss it with Danantara to find the best path. “If supported by Commission XI, we will execute (the PNM takeover plan). We have reported to Mr President, he said, if it’s good, just proceed. But we are still negotiating with Danantara. We request your support (from Commission XI of the DPR RI),” said Purbaya. However, he continued, if Danantara commits to building the integrated SME development ecosystem as outlined above on its own, then the Ministry of Finance will not take over PNM. “We will try to follow up like that. If it can proceed (implemented by Danantara itself), please proceed. But if not, we will take over (PNM). If it is taken over, we will report here (to Commission XI), whether it’s allowed or not,” added Purbaya.