Indonesia will encourage state enterprises to boost their capital through debt or rights issues to enable them to contribute more to economic growth, State Enterprises Minister Rini Soemarno said on Thursday. Export-oriented state firms such as palm oil producers could issue US dollar-denominated debt in the global market to increase their downstream processing capabilities, Soemarno said. Other funding options included government cash injections, bank loans or money from regional investors, she added. "I am convinced that we can build this country, and we can push for growth across Indonesia through SOEs," Soemarno said. "But the capital owned by SOEs right now is not enough if we want to push for growth aggressively." Soemarno, a former head of Indonesia's biggest car distributor Astra Internasional, said she was "not too keen" on offering stakes in state enterprises through initial public offerings as that would dilute the government's control. The ministry was considering injecting about 500 billion rupiah (HK$307.5 million) into state-owned Merpati Nusantara Airlines to help it resolve payroll issues ahead of potentially offering it to strategic investors, she said. "If we can resolve that [unpaid salaries], investors might be more interested. Right now, there is no investor because Merpati has a huge problem with its employees," she said. Since taking office under President Joko Widodo's administration in October last year, Soemarno has made bold moves to reform the country's state enterprises, such as dismissing the entire board of directors at state energy giant Pertamina. There are 119 state enterprises, of which 20 are listed companies, according to the state enterprises ministry. State firms are estimated to have contributed 150 trillion rupiah to the government's income last year through dividends and taxes.