Transformation of SOE Ministry Annual Report 2020
42
62
FINANCIAL SERVICES
CHAPTER 1
2 3 4
5
6 7
SOE PORTFOLIO & CONSOLIDATED FINANCIAL PERFORMANCE REVIEW
Assets Composition of Financial Services Cluster 31 December 2020
1.7%
8.4%
20.7%
33.2%
35.1%
0.7%
0.2%
2020 Milestones
› State Equity Participation to
PT Permodalan Nasional Madani (Persero)
> Merger of 3 sharia banks, namely PT Bank BRI
Syariah Tbk, PT Bank Syariah Mandiri and PT BNI
Syariah to form PT Bank Syariah Indonesia Tbk (BSI)
BRI
Mandiri
BNI
BTN
Pegadaian PNM Peruri
Financial Parameter
>
2020
2019
Rp Billion
Revenue
EBIT
NOPAT
Net Profit
PPOP
413,295 416,937
64,741 106,545
44,454 83,417
44,440 83,412
138,102 146,963
>
Assets
4,258,999 3,941,798
Invested Capital
(A + B)
920,802 964,755
A. Financing
Liabilities
Current
Non Current
B. Capital
360,019 370,516
174,813 186,016
185,206 184,500
560,783 594,238
2020 Performance Analysis
In 2020, bank loans nation-wide declined by
2.4% due to the economic slowdown impacted
by the COVID-19. On the other hand, third party
funds of the banking sector rose 11.1% due
to a decline in consumption. As a result, LDR
decreased to 82.5% from 93.6% in the previous
year.
Correspondingly, it led to a decline in net profit
of the Financial Services Cluster. Excluding the
intra-financial Cluster, the Cluster's consolidated
profit in 2020 reached Rp44.4 trillion (including
non-controlling interests), decreased by 46.7%
from 2019. The decline was driven by a) a
decrease in interest income posted by state-
owned banks from Rp349.5 trillion to Rp338.8
trillion (decreased by 3.1%), and b) an increase
in Allowance for Impairment Losses from Rp46
trillion in 2019 to Rp79 trillion or 74% YoY due to
FSAS 71 implementation.
Composition of Manpower
2020 by:
Gender
230,345
54%
O
46%
Loans
2,735,555 2,688,258
>
TPF
3,155,103 2,834,253
In 2020, the average NIM contracted by 0.4%
from 5.1% to 4.7% with coverage to NPL ratio
reaching 205.2%.
Education
>
Financial Performance Indicators
The Financial Services Cluster was the largest
dividend contributor in the SOES portfolio.
32%
EBIT Margin
Net Margin
ROA
ROE
15.7% 25.6%
10.8%
20.0%
Assets & Liabilities
1.0%
7.9%
2.1%
14.0%
>
CAR & Assets Quality
NPL Gross
LAR
3.5% 2.7%
27.0% 10.9%
CAR Assets
Weighted
Average
19.4% 21.1%
>
Male
Female:
A. Financing
Liabilities
MINISTRY OF STATE-OWNED ENTERPRISES
INFRASTRUCTURE
Assets Composition of Infrastructure Cluster - 31 December 2020
1%
14%
7% 1% 1%
.9%
12%
-18%
18%
19%
HK
Waskita
JM
Wika
PP
Construction
Adhi
Perumnas
Brantas
IS
Cement
Batu
Raja
ANNUAL REPORT 2020
2020 Milestones
› Bonds issuance for Waskita, Adhi, and Jasa Marga and
HK global MTN for refinancing
> Establishment of JM Jogja Bawen JV (JM, Adhi, PP,
Waskita, Brantas)
> Establishment of Batang Integrated Industrial Estate JV
> Establishment of PT Jalintim Adhi Abipraya JV (Adhi and
Brantas
Financial Parameter
Rp Billion
>
2020
2019
Revenue
Operating Income
EBITDA
124,591 175,816
9,612 23,996
18,165 31,921
10,018 25,399
EBIT
NOPAT
Net Profit
7,486 23,392
-9,462 10,512
>
Assets
Invested Capital
(A + B)
558,500 548,639
416,431 405,982
268,169 235,708
>
Current
Non Current
90,282 71,874
177,887 163,833
B. Capital
148,262 170,275
>
Financial Performance Indicators
2020 Performance Analysis
The Infrastructure Cluster is one of the clusters
most affected by the COVID-19. The decline in
mobility due to the large-scale social restrictions
resulted in less toll road traffic volume and
delays in the execution of infrastructure projects.
Consequently, sales and EBITDA fell to Rp124.6
trillion and Rp18.2 trillion respectively in 2020,
or decreased by 29.1% and 43.1% respectively
compared to the previous year.
In 2020, the decline in EBITDA also led to
several companies needing to be restructured,
considering the overleveraged balance sheets
in recent years. As a result, the Infrastructure
Cluster suffered a consolidated net loss of Rp9.5
trillion after recording a Rp10.5 trillion profit in the
previous year.
Due to the decline in EBITDA, Infrastructure
Cluster's debt service capacity weakened as
reflected in the debt to EBITDA ratio of 14.8x in
2020 from previously 7.4x.
As such, the main focus of this Cluster in 2020
was to carry out a comprehensive restructuring
program by reviewing its debt service capacity
and gearing position.
Composition of Manpower
2020 by:
14%
Gender
C
29,359
Male
Female
Education
86%
46%
Operating Margin
EBITDA Margin
230,345
65%
Net Margin
3%
ROA
ROE
ROIC
In 2020, the consolidated total gross loans
distributed by the Financial Services Cluster
reached Rp2,736 trillion or grew by 1.8%
compared to the previous year; meanwhile,
consolidated third party funds reached Rp3,155
trillion, or grew by 11.3% from 2019. Low-cost
funds (CASA) made up 60% of the total third
party funds. Loan quality worsened, as reflected
in the increase in consolidated Gross NPL
(before elimination) of the 4 state-owned banks
(Himbara) from 2.7% to 3.5%.
The loans restructuring program impacted by
the COVID-19 increased Consolidated LAR from
10.9% in 2019 to 27.0% in 2020.
≤D3
Bachelor Degree
Post Graduates
Age
>
The state-owned banks had sound capital
adequacy, with 19.4% CAR for all Clusters.
10%
0%
230,345
<45
45-55
>55
90%
7.7% 13.6%
14.6% 18.2%
-7.6%
6.0%
-1.7%
1.9%
-6.4%
6.2%
> Despite the challenging conditions, this Cluster
still contributed Rp1.1 trillion in dividends for the
2020 financial year from Semen Indonesia.
Assets & Liabilities
29,359
5%
1.8%
5.8%
Gearing Ratio & Capital Structure
Debt to Invested
Capital
Debt to EBITDA
EBITDA to Interest
1.1x
64.4% 58.1%
14.8x
7.4x
2.5x
Coverage
RESILIENCE AMIDST UNCERTAINTY
RESILIENCE AMIDST UNCERTAINTY
> The SOES under the Infrastructure Cluster
had experienced significant pressure on
their financial structures even before the
COVID-19. The most significant contributor to
this overleveraged financial structure was the
role of Infrastructure SOES in building toll road
infrastructure in Indonesia. For example, Waskita
was assigned to handle stalled toll road projects
in Java, while HK was assigned to the Trans-
Sumatra Toll Road.
>
The Cluster's debt to invested capital ratio was
at 64.4%; the upper limit of this ratio set by the
SOE Ministry is 45%, based on the gearing rates
observed in investment-grade companies.
Waskita and Perumnas had the highest gearing
level among the 10 SOES in this Cluster, followed
by Jasa Marga, HK, and Adhi. To that end, this
Cluster focused its performance on de-risking
dan deleveraging.
49%
≤D3
Bachelor Degree
Post Graduates
Age
72%
1%
27%
O
29,359
<45
45-55
>55
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