Bad News From Erick Thohir, Only 4 BUMN Groups Whose Performance Grows Positively In 2020, The Most Boncos Energy

JAKARTA - SOE Minister Erick Thohir said only four BUMN groups recorded positive growth throughout 2020.

"We only have four groups, namely telcos, healthcare, plantations, and food and agri which we can consider still (growing). Others are of course very deeply affected because there are elements of uncertainty such as COVID-19," said SOE Minister Erick Thohir, quoted from Antara. , Friday 18 June.

The Ministry of SOEs recorded telco growth of 1 percent (yoy) or Rp.881 billion, healthcare grew by 8 percent or Rp.1.03 trillion, plantations by 9 percent or Rp.3.65 trillion, and food and agri grew 4 percent or equivalent to Rp.4.04 trillion.

Minister Erick said that the situation faced by BUMN was the same as that of most private companies. SOEs were affected by 90 percent and the cluster that contributed the largest dividends to SOEs experienced a significant decline.

"We can see from the dividends that SOEs have been supported by banking (banking), telco (telecommunication), energy, and mining (mining) are now very impactful," he said.

Energy was the hardest hit with growth of minus 18 percent or IDR 204 trillion, then banking minus 3 percent or IDR 10.3 trillion, and mining minus 17 percent or IDR 14.06 trillion.

Apart from being caused by variations in new virus mutations that limit people's activities and the speed with which vaccine supply is fulfilled, Minister Erick said that the economic slowdown and the weakening of people's purchasing power are also elements of uncertainty that affect the performance of SOEs.

In response to the COVID-19 pandemic, Erick has prepared a 2020-2024 SOE roadmap which is divided into three stages.

"We are pulling an acceleration where in the second quarter of 2021 we enter the resilience and survival category where we protect strategic SOEs that are indeed affected by COVID-19 and SOEs that have the potential to become strengths," said Erick.

In addition, he continued, the Ministry of SOEs has formed a clustering based on supply-chain linkages and industrial similarities to increase synergies. Also, improving the SOE's GCG foundation along with operational restructuring to achieve operational excellence.

Then, the second stage is restructuring and realignment which is targeted to be completed by the second quarter of 2022, through portfolio improvement with corporate restructuring aimed at consolidation and simplification as well as preparing the foundation for new business model innovations.

While the third stage with a target until 2024 is innovation and transformation. Erick wants to create opportunities for private sector participation and specialize in SOEs with commercial and social objectives.