REPUBLIKA.CO.ID, JAKARTA -- Former Minister Secretary of State-Owned Enterprises, Said Didu, regretted the decision taken by the House of Representatives' budget committee on capital injection, known as PMN, for State-Owned Enterprises (SOE). Parliament decided not to approve most of government's proposal to inject capital into 35 state-owned companies.

Last night, the budget committe did not approve the proposal to inject Indonesian largest bank PT Bank Mandiri, Tbk and steel producer PT Krakatau Steel. The committee also cut the capital allocated for mining company PT Aneka Tambang (Antam) by half.

Said Didu said that state-owned bank could not expand wider due to limited capital. "Indonesia has high need on financing. If PLN and Pertamina need financing, state-owned banks cannot provide it due to limited capital," Said Didu said on Thursday, February 5.

He is worried that foreign banks take the advantage and dominate Indonesian market. Indonesian state-owned banks cannot compete with foreign banks due to capital. "If government injects 5 trillion IDR, the bank can finance 50 trillion IDR," he said.

He expects that government has a strong will to have strong state-owned banks to face ASEAN Economic Community.

Meanwhile, Head of Network Strategic Analysis and Research of Market Investor, Reagy Sukmana, said the decision could make Indonesia losing its chance to have a strong bank. "Bank Mandiri needs PMN to finance infrastructure," Sukmana said.

He is optimistic that Bank Mandiri can finance infrastructure development to support economic growth. "The House must be visionary," he said.

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