Erick Thohir Affirms Streamlining SOEs Is Possible: Don't Think If You Lose There Is A State To Help

PALEMBANG - Minister of State-Owned Enterprises (BUMN) Erick Thohir said he did not rule out the possibility of streamlining SOEs, which currently numbered 41 from the previous 108.

Erick Thohir said that the policy was very likely to be taken because SOEs had to adapt to the current situation and conditions of their respective industries.

“Is it downsized? It is possible, depending on the industry situation. So yes it is possible," said Erick Thohir in Palembang, South Sumatra, quoted by Antara, Sunday, October 24.

Erick said the downsizing of SOEs was one of the strategic steps in the ongoing transformation process since the last two years.

In this transformation, Erick Thohir cut the number of clusters to 12 from the previous 27 clusters, which is safe for each cluster to be divided into industrial sectors carried out by SOEs.

According to him, SOEs must transform, especially in the business model because the state expects state-owned companies to be able to provide as much income as possible.

In the transformation process, the Ministry of SOEs has set five foundations, namely improving corporate and public services, focusing on core business, digitalization-based innovation, good business processes and starting with the transformation of human resources.

"Don't think, this is a state company. If you lose, there are countries that will help," said Erick Thohir.

So far, Erick admits that he is not satisfied with the achievements of the Ministry of SOEs.

Although so far, SOEs have been able to contribute to the country worth IDR 377 trillion through taxes, dividends and profit sharing.

Then, SOEs were able to increase profits by 365 percent or in the first semester of 2020 it only reached Rp. 6 trillion, while in the same period in 2021 they were able to earn Rp. 26 trillion, but this achievement is not optimal if you look at the assets owned by SOEs which reach above Rp. 9,000 trillion. .

Erick still regrets that, even though it has been reduced to 41 SOEs, in fact, the 11 SOEs that provide dividends to the state are still state-owned.

"But whether those that cannot produce dividends will be disbanded, yes not because it is also seen because there are also SOEs that work for public services," said Erick.

He gave examples such as PT KAI and PT Pelni which cannot possibly be forced to make as much profit as possible because most of their activities are public service obligations (PSO).