Indonesia to give financial support to state firms dashed by COVID-19

Source: Xinhua | 2020-05-14

Indonesia will inject capital into state companies, likely including flag carrier Garuda Indonesia, which are dashed by the COVID-19 pandemic, an official of the Finance Ministry said on Wednesday.

The financial support would be given to the state firms complying with some criteria which will be designed and discussed later during a cabinet meeting, said Febrio Kacaribu, head of the Finance Ministry's Fiscal Policy.

The criteria include playing an important role in the country's economy, the official said.

"Later, we will officially announce the firms after the matter is brought to a cabinet meeting," he told an online press conference.

The official conceded that scores of state companies have been hit hard by the COVID-19 pandemic which has been disrupting the supply chains.

The financial support aims at helping the firms deal with their financial difficulties, he said.

"The support for the state firms needs to be executed as soon as possible. It should not be until the final quarter as some state firms urgently need the support," Kacaribu said.

State airlines company PT Garuda Indonesia and state electricity firm PT Perusahaan Listrik Negara could be among the recipients of the financial assistance, he added.

The virus outbreak has been ravaging Indonesia's economic sectors including tourism, aviation, manufacture and utility.

Director of the Finance Ministry's Budget Financing and Risk Management Luky Alfirman previously said that the government would help state carrier PT Garuda Indonesia pay its debt as the pandemic has sharply reduced passenger numbers.

The COVID-19 keeps spreading in the vast archipelagic nation, forcing authorities to be cautious in lifting the partial lockdowns amid the global concern of a second wave of transmission as some nations aim to end the restrictions.

On Wednesday, Indonesia recorded 689 new cases, a record high daily spike, bringing the total to 15,438 with fatalities totaling 1,028, the Health Ministry reported.