TEMPO.CO, Jakarta - Former President Joko Widodo has officially dissolved the state-owned company PT Pembangunan Armada Niaga Nasional or PT PANN (Persero). The closure of the company is stipulated in Government Regulation (PP) No. 43/2024, which Jokowi signed on October 17, three days before he left office.

The dissolution of PT PANN, established in 1974, was carried out after various studies and aspects of the company's performance were considered. This is stated in Article 2 of PP No.43/2024, which states that the implementation of the liquidation is carried out with the provisions of laws and regulations for SOEs, companies, and in the field of bankruptcy and suspension of debt payment obligations (PKPU).

The completion of the liquidation of PT PANN has been carried out for a maximum of five years. This means that since the company submitted a restructuring of the Subsidiary Loan Agreement (SLA) debt in 2019, the process of determining the liquidation of the company has been ongoing.

PT PANN was formerly known as PT PANN Multi Finance (Persero), founded in 1974 to serve as a vehicle for organizing national commercial ship investment programs. During its first 20 years of operation, the company purchased eight used merchant vessels from Europe, including one bulk carrier and seven general cargo vessels.

Between 1995 and 2006, the fleet business managed by PT PANN Multi Finance suffered losses due to the inability of four airlines to pay for the lease of 10 Boeing 737-200 aircraft.

Other losses were incurred by PT PANN Multi Finance, which at the time was undertaking the construction of 31 fishing vessels for PT Industri Kapal Indonesia (Persero). The company was only able to complete 14 of these vessels. It was forced to bear the construction cost of Rp120 billion for products that could not be absorbed by the market.

In 2013, PT PANN Multi Finance applied to restructure its business through a spin-off to finance the maritime sector. Subsequently, it changed its name to PT PANN (Persero), which serves as a non-operating parent company holding in the maritime sector.

In 2019, PT PANN applied to the Finance Ministry for the restructuring of SLA's debt. The Minister of Finance approved the settlement of government claims against PT Pengembangan Armada Niaga Nasional (Persero), as provided for in the Minister of Finance Decree No. S-537/MK.05/2019.

In the same year, the company engaged in maritime management also applied for an additional non-cash state capital participation (PMN) from the conversion of SLA debt, as stipulated in Law No. 20 of 2019 on the State Revenue and Expenditure Budget (APBN) for the fiscal year 2020.

Editor’s Choice: ICW Says State Losses during Jokowi Era Reached Rp 290 Trillion

Click here to get the latest news updates from Tempo on Google News