Government Investment and Capital Participation to State-Owned Enterprises in Indonesia to Mitigate The Impact of The COVID-19 Pandemic: Is It Effective?

Abstract

The National Economic Recovery (PEN) Program is set by the government of Indonesia comprehensively regarding the handling of the devastating impact of COVID-19. The target recipients of the PEN program are classified into two, namely: the first group, State-Owned Enterprises (SOEs), and the second group are non-SOEs business units, where for SOEs this is done in the form of State Capital Participation (PMN) and Government Investment (IP). This research aims to analyze the impact of the PEN program on SOE performance. The analysis results show that the PEN Program has a positive impact on SOEs, as seen from SOEs ROA. The PEN program that has been running has not been able to improve significantly. However, it can be said that the PEN Program has been able to protect the operations of SOE recipients of the PEN program. In addition, the PEN Program has had an impact on achieving positive EAT growth in almost all recipient SOESs. The PEN program for SOEs needs to be re-evaluated, especially for SOEs that had the potential to perform poorly before the pandemic.