Transformation of SOE Ministry Annual Report 2020
CHAPTER 1
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SOE ROADMAP & TRANSFORMATION
MINISTRY OF STATE-OWNED ENTERPRISES
ANNUAL REPORT 2020
PRIORITY 4:
BOOSTING INVESTMENTS
The Ministry of SOE collaborates with SOES and Ministries/Institutions to create
an enabling situation for the growth of new investments in Indonesia. Three
programs have been established, namely increasing strategic investments that
have a large and sustainable impact, attracting direct investment from foreign
investors, and building a healthy investment climate. The efforts to increase
strategic investment that are implemented to date have shown positive results.
BUILDING ENERGY SECURITY
The policies that aim to boost investments in energy
security is focused on creating new and renewable
energy, reducing dependence on oil and gas imports,
and promoting energy equity and affordability.
In 2020, several business model innovations were realized.
These included the implementation of the Biosolar B30
program, the operation Lumut Balai unit 1 geothermal
field in Muara Enim, South Sumatra with a capacity of
1x55 MW, and the acceleration of the coal gasification
program.
PGN is also implementing Decree of the Minister of
Energy and Mineral Resources No.89 K/IO/MEM/2020
concerning the supply of natural gas to seven specific
industrial sectors at a price of USD6/MMBTU. By managing
96% of Indonesia's natural gas infrastructure, PGN, now
with 10,100 kilometers of pipeline connections, can serve
more than 422,000 customers from all sectors: power
sector, industries, commercial, MSMEs, transportation, and
households.
SOE INVESTMENT OPTIMIZATION
Collaboration with the Ministry of Foreign Affairs in
strengthening economic diplomacy is carried out in
line with the SOEs' vision of Go Global. This will maximize
the value of outbound investment by SOES worldwide
to reach USD17.5 billion, as well as boosting Indonesia's
export performance. The collaboration also includes
matchmaking efforts between SOES and foreign investors
who are interested in making inbound investment in
Indonesia in accordance with the sector of interest.
transparency has effectively enhanced trust towards SOES
in the international community.
To date, there have been three global bonds issued by PT
Inalum (Persero), PT Hutama Karya (Persero), and PT Bank
Mandiri (Persero) Tbk, amounting to a total of USD3.6 billion
or equivalent to Rp54 trillion.
ATTRACTING FOREIGN INVESTMENT
Indonesia Investment Authority (INA) which was
established in 2020 by virtue of Government Regulation
No. 73 and No. 74 is a joint initiative of the Ministry of
SOE, the Ministry of Finance, and the Coordinating
Ministry for Economic Affairs. INA has an important role
in attracting foreign investors in Indonesia's strategic
projects. Foreign capital will be an alternative source
of investments outside of the state budget and SOEs in
creating job opportunities for the Indonesian people. In
the early stages of INA development, the government is
committed to deposit capital of Rp75 trillion, with an initial
cash deposit of Rp15 trillion.
Indonesia's interest in having foreign investment concerns
several purposes, including the revitalization of the Benoa
Harbor Area in Bali as a Home Port Cruise, the gateway
for tourists through cruise ship visits. This project is entrusted
to Pelindo III and is targeted to multiply cruise ship visits
and tourists to ports and new tourist destinations in Bali as
well as other maritime tourism throughout Indonesia.
Meanwhile, global bonds, fund innovation from SOEs, are
still in demand by international businesses. This shows that
SOES' transformation that increases competitiveness and
SPECIAL ECONOMIC ZONES
The support from Plantation Holding (PTPN III) that
simplify land acquisition process for investors to develop
manufacturing facilities in Special Economic Zones (SEZ) is
a significant push for the growth of domestic investment.
This support runs effectively in SEZs in Batang, Kendal,
Central Java and in Sei Mangkei, North Sumatra. In
Mandalika, West Nusa Tenggara, the SEZ development
support is provided by the state-owned Indonesia Tourism
Development Corporation (ITDC.
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To reduce dependence on imported energy, PGN
has realized 90% of the construction target of 127,864
Gas Networks (Jargas) for household connections in 23
districts/cities. This initiative demonstrated the effective use
of the 2020 State Budget. It also showed PGN's support to
the Government's program of optimizing the use of natural
gas to reduce dependence on imported energy. To date,
the initiative's actual progress has reached 90%.
Meanwhile, PLN and Masdar, a UAE-based company in
renewable energies, are accelerating the development
and adoption of solar power plants. A solar power
project in Cirata Lake, West Java of 145 MW is poised
to be the largest in Southeast Asia. There are also other
breakthroughs carried out to sustain energy security for
the future, including the development of electric vehicle
battery, the down-streaming of mineral and coal industry,
and synergizing refineries and petrochemicals.
RESILIENCE AMIDST UNCERTAINTY
RESILIENCE AMIDST UNCERTAINTY
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