City Asked to Formulate Dividend Criteria For BUMD

City Council Commission C, asking Jakarta Provincial Government to formulate dividend criteria based on government investment participation (PMP) that has been received by BUMD.

It's also according to BPK audit, requesting the evaluation of regional capital participation to achieve the target

City Council Commission C Member, Manuara Siahaan disclosed, the criteria formulation is conducted to find out the BUMD that has received PMP budget can provide benefits to the local treasury.

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"Council has never got an explanation from BUMD Guidance Board about how many BUMDs that are able to absorb a given capital investment, thus can reach optimal operating point," he expressed, during work meeting along with BUMD, Monday (7/24).

Manuara hoped the BUMD Guidance Board could prepare Standard Operating Procedures (SOP) related to the ability of working capital absorption for BUMD.

"It's also according to BPK audit, requesting the evaluation of regional capital participation to achieve the target," he stated.

Answering the aspirations of the council, Jakarta BUMD's Guidance Board Head, Yurianto explained this year, his party gets the assignment to handle equity participation for BUMD.

"Initially, the BPK signed the PMP for BUMD," he told.

He continued would prepare PMP proposal for BUMD in 2018 APBD, including correlation between dividends with local equity participation that has been received by BUMD.

"We will explain several BUMDs that do not receive dividends, but receive PMP. The profit earned is not financially, but economically," he disclosed.