Capital injections into state-owned enterprises (SOEs) have experienced delays this year, potentially hampering growth-generating projects that had been expected to have multiplier effects on the economy.

Four months after the House of Representatives approved a total Rp 64.82 trillion (US$4.9 billion) in capital injections for 40 SOEs, the government has so far issued only five of 40 regulations needed to disburse the stimuli.

The regulations issued so far, signed by President Joko “Jokowi” Widodo, are for disbursements to construction firms PT Adhi Karya, PT Hutama Karya and PT Waskita Karya as well as for PT Geo Dipa Energi and Perum Damri.

With the remaining 35 state enterprises waiting for similar regulations, analysts are warning of lower-than-expected economic growth in the second quarter as growth-spurring projects face delays.

“The slow stimulus disbursement may result in low disbursement of the infrastructure budget, especially after only 8 percent of the total Rp 290 trillion infrastructure budget was disbursed in the first quarter,” said Samuel Sekuritas economist Lana Soelistianingsih.

Indonesia’s economy grew 4.7 percent in the first quarter this year, the lowest level in six years, and the government is banking on state capital injections into SOEs stoking economic activity .

Budi Frensidy, an economist at the University of Indonesia (UI), contended that with only five government regulations on stimulus disbursements issued so far, any positive effects from stimulus-funded projects were unlikely to be noticeable until next year.

However, Lana and Budi both applauded the government’s move in prioritizing construction companies

State-Owned Enterprises Minister Rini Soemarno insisted that most government regulations for stimulus disbursements would be issued by August, allowing state enterprises to begin their projects this year.

The delay has had mixed impacts for SOEs, including publicly listed miner PT Aneka Tambang (Antam), publicly listed construction firms Waskita Karya and airport operator PT Angkasa Pura II (AP II).

Antam has postponed a rights issue to secure Rp 3.5 trillion in state stimulus funds, originally scheduled for late April.

The firm’s internal data show that it will need two to three months to prepare for the rights issue, suggesting that the issue could go ahead in September or October if the regulation is signed in August.

Under its corporate plan, Antam is to issue new shares with a total value of Rp 5.38 trillion, of which Rp 3.5 trillion will be state stimulus funds and the remaining Rp 1.88 trillion will come from the public.

Antam plans to use the state capital injection to partly finance its ferronickel smelter project in East Halmahera, as well as an anode slime project.

Meanwhile, Waskita and AP II expect to be able to launch stimulus-funded projects this year.

Waskita corporate secretary Antonius Yulianto Nugroho said he was optimistic that Rp 3.5 trillion in capital injections for his firm would be disbursed early next month, when the stimulus would be rubber-stamped by the finance minister.

Waskita is holding a rights offering from June 24 to July 1. The firm expects to reap Rp 3.5 trillion from the government and Rp 1.8 trillion from the public.

“We’re not solely dependent upon the stimulus, as we’re also utilizing both internal cash and loan facilities to finance a number of our capital injection-funded projects in the meantime. Our projects are in progress,” Antonius said.

Voicing a similar view, AP II president director Budi Karya said that his firm would use internal cash and borrowed money if the expected stimulus was not disbursed on schedule.

He was optimistic, however, that AP II, which runs Soekarno-Hatta International Airport, would obtain the state funds next month.

• [Editor:Juan]