SOE Directors Are Expected Not To Be Lulled By Positive Performance 2023

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir asked SOE directors not to be complacent with the positive performance in 2023 which recorded dividends of IDR 81.2 trillion and was more alert to geopolitical turmoil in the Middle East.

Erick said that the war between Iran and Israel has the potential to disrupt the supply chain of a number of commodities, both from the energy and food sectors. The dividend target was raised from IDR 81 trillion to IDR 85 trillion next year.

"If we don't offer it from March-April, I'm afraid we will be complacent because our performance is good. Well, if next year's dividends don't get achieved, this is what I warn you," said Erick in Jakarta, quoted from Antara, Saturday, April 20.

The board of directors of SOEs is asked to really open their eyes to the current situation.

According to Erick, anticipatory steps are not limited to maturing debt matters, operational expenditures or capital expenditures. He emphasized that corporate action is needed in order to compete with other countries, especially in Southeast Asia.

"I'm not just talking about due debt, opex, capex. But there, if you look at it, I'll include corporate action, because the competition in Southeast Asa is also heating up," he said.

Furthermore, Erick said, each SOE has different issues and problems in facing geopolitical challenges.

Therefore, he did not provide specific directions to SOE directors. Erick only advised every company to optimize the various opportunities that arise.

"They have their own dynamics, pharmaceuticals, MIND ID, Garuda, have a different context depending on the situation of capex, opex, debt, income rupiah or income dollars. That's why I warn you, then ask for a stress test by optimizing various opportunities," said Erick.