State Owned Entreprises (SOE) Holding Performance, Quo Vadis
Through the formation of this holding, it is also hoped that Indonesian SOEs will be able to record brilliant business performances such as that obtained by Temasek Singapore and Khazanah Malaysia. Thus, when this BUMN holding performs well, the SOE contribution in terms of tax revenue and dividends is also expected to increase.
What is the current state-owned holding performance? Of the 10 state-owned holding companies that have been established, several have performed relatively well. Cement holdings, fertilizers, mining, and ultra micro holdings are some examples of positive performance. The indicators can be seen from the growth in sales levels, size of assets, control of market share, and their efforts to enter the international market.
Several other BUMN holdings are still struggling in restructuring efforts to improve performance. The plantation holding group (PTPN), for example, is still struggling to record positive results after suffering heavy losses in recent years. There have been positive signs of improvement because in the 2021 financial year the bottom line number has been positive.
Likewise, the non-bank financial industry group that joined the IFG holding. A tough task awaits them in increasing the competitiveness of the insurance companies that are their subsidiaries. Moreover, they also have to oversee the business continuity of IFG Life, a new business entity formed to continue Jiwasraya’s business.
Several other holdings were relatively recently established and their success cannot be assessed, such as the food BUMN holding, aviation holding, and survey service holding.
Some of the keys to the success of SOE holding in increasing value creation include success in managing post-merger integration. This stage is a crucial period because uniting aspects of corporate culture is quite a complex job. Likewise, efforts to standardize various aspects of the management function require extraordinary efforts. Some of these state-holding companies have had ups and downs before getting the right formula for managing their business portfolio.
