Two Indonesian state companies plan to sell private equity funds to raise 8 trillion rupiah ($583.6 million) to strengthen their finances, the government said on Tuesday.
Infrastructure development is a core part of President Joko Widodo’s economic agenda and state firms are taking up most government projects.
Earlier this month, Standard & Poor’s Global Ratings highlighted a deterioration in the balance sheets of SOEs that are involved in a government-led infrastructure push.
State-controlled construction firm PT Waskita Karya and toll-road operator PT Jasa Marga are in the process of selling some shares in several toll roads in the form of private equity funds, Ahmad Bambang, deputy state-owned enterprises (SOE) minister, said in the statement.
The move was aimed at “strengthening companies’ finances as they are both currently investing heavily … in large scale infrastructure projects,” Bambang said, adding that some pension funds had expressed interest in investing.
Waskita and Jasa Marga did not respond to requests for comment.