State Owned Entreprises (SOE) Holding Performance, Quo Vadis
BUMNINC.COM I The State Owned Enterprises (SOE) restructuring policy through the establishment of a SOE holding has been implemented for some time in Indonesia. This idea was initially launched by the Ministry of SOEs under the first Minister, Tanri Abeng. The goal is an effort to improve performance by increasing the competitiveness of state enterprises.
Holding of SOE is expected to have a significant impact on the economy. In addition, SOE Holding aims to increase the competitiveness of SOE. Through the formation of holdings, it is also hoped that the capability of SOEs can increase through a multiplier effect.
By merging several companies at once, the holding company can acquire and work on projects on a larger scale than if the company was still independent. This is possible because of the concentration of resources on the holding, namely capital resources and human resources to generate greater profits.
Competition among companies that were previously independent no longer occurs with the existence of holding companies. Now they can combine their strengths, especially if they are in the same line of business.
Through the establishment of the Holding, the operating economies of scale can be realized. So that companies, for example, can take advantage of privileges when ordering goods in large quantities, such as quantity discounts or credit terms.
