Strategy to Accelerate SOE Indonesia Restructuring
BUMNINC.COM I Synergy and Value Creation of BUMN. That is the tagline conveyed by the government to increase the competitiveness of state-owned entreprises or SOEs (BUMN). The basic idea is to reduce the number of SOEs (the target is to become 85 SOEs), the formation of several holding companies, and the emergence of an SOE empire that is included in the Fortune 500 or Forbes 2000.
Last week, a list of SOEs was announced that was included in Forbes 2000 and only a few SOEs were listed there. BRI is the top SOE on the list, followed by Bank Mandiri and PT Telkom. It’s been almost two decades
This idea of transformation was launched, but the progress has not been seen as significant enough. It was only in the Jokowi administration’s volume 2 that the effort to accelerate the action plan for the transformation of BUMN was relatively faster. The formation of several new BUMN holdings, the concept of transforming financial and HR functions, as well as BUMN’s efforts to go global are some examples.
What is undeniable is that the impact of Covid-19 has also hit the performance of SOEs quite deeply throughout the end of 2019 and continues into the 2020-2021 period. The consolidated profit figures for SOEs fell sharply and the number of SOEs lost more and more.
Even several SOEs in the blue-chip category, such as KAI, Angkasa Pura 1 and Angkasa Pura 2, has started showing signs of red in their performance throughout 2020 and 2021.
Several efforts to improve the performance of state enterprises have begun to be implemented more consistently. For example, the government’s plan to liquidate several BUMNs that have stopped operating, such as KKF, Iglas or Merpati Airlines.