Finance Minister Reports to Prabowo on Plan to Take Over PNM

Finance Minister Purbaya Yudhi Sadewa has disclosed that he has reported to President Prabowo Subianto regarding plans to take over PT Permodalan Nasional Madani (PNM).

Purbaya intends to position PNM as a Special Mission Vehicle (SMV) under the Finance Ministry. “I have already informed the president: Sir, there is this plan (to take over), if it is permissible,” he said when met by journalists at the Finance Ministry.

According to Purbaya, the president responded: “He said to calculate it, if it is good, why not.”

However, Purbaya stated that no final decision has been made. He is continuing discussions with Danantara CEO Rosan Roeslani. “We are continuing discussions with Mr Rosan on what the best course of action is for the state in channelling People’s Business Credit (KUR) and credit for small and medium enterprises,” he said.

As is known, PNM currently operates under PT Bank Rakyat Indonesia (BRI). BRI Managing Director Hery Gunardi said he was unaware of Purbaya’s request. “There has been nothing yet. No [discussions],” Hery said when met at Wisma Danantara.

Previously, Purbaya explained that PNM is a public business entity. If it is tasked with executing Public Service Obligations (PSO) or government service obligations, this could potentially harm BRI’s valuation.

“So I think if a unit is executing PSO, the government mostly uses it itself. I am discussing with Mr Rosan whether it is possible or not. If he does not approve, then that is that,” Purbaya concluded when met separately at Wisma Danantara.

Nevertheless, Purbaya stated that banks can also continue channelling KUR as usual. However, he has already designed a programme whereby government KUR will be distributed solely through PNM. “That is roughly the scheme. You calculate now, how much do I [pay] in KUR interest subsidies? Rp40 trillion is lost. If I channel it through PNM, as long as it is not lost, with low interest there is still money. If I inject that amount every year, it becomes significant over time,” he explained.