Erick Thohir Disbands 74 SOEs, From Pertamina To Telkom Subsidiaries

Minister of SOEs, Erick Thohir. (Photo: Doc. Ministry of SOEs)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir has dissolved 74 state-owned companies. The number consists of children and grandchildren of BUMN Pertamina to Telkom.

Furthermore, Erick said that this step was taken as an effort of business efficiency and consolidation.

"Indeed, we must continue to consolidate and be efficient. And the number of SOEs is offspring, because of that, we have closed 74 children and grandchildren of state-owned companies. At Telkom, there are 13, Pertamina 26, and PTPN Group is 24," said Erick, in Jakarta, Wednesday, December 1.

In detail, the 74 children and grandchildren of the businesses that were closed consisted of 26 companies under Pertamina. Then, 13 children and grandchildren of the company PT Telkom Indonesia (Persero) Tbk. Then, 24 subsidiaries and affiliates of PTPN Group or Nusantara Plantation Holding. In addition, there is a subsidiary and grandson of PT PLN (Persero) PT Krakatau Steel (Persero) Tbk.

Erick Thohir said that plans for disbandment or closure would continue. One of them is through the privatization scheme of companies with sub-standard or small revenue levels.

Not only that, Erick also ensured that the closure would not have an impact on reducing BUMN employees. This certainty is based on the belief that the efficiency of the number of subsidiaries of BUMN will make the company's business develop better.

"What does this mean? What's interesting is if you ask whether there is a job release? Yes, not really because with the development of the business, the workforce is absorbed," he said.

In addition, Erick said that he would also change the business model of state-owned companies. For example, at Telkom, which is focusing on a business-to-business or (B-to-B) model. Meanwhile, Telkomsel will focus on its business-to-consumer (B-to-C) business.

Furthermore, Erick claims that this change in business model has succeeded in increasing Telkom's market share to IDR 411 trillion in the last six months.

"Now the mockup of the cap when the tel-co industry is questioned is sunset, but Telkom can still get 6.1 percent revenue growth, which is approximately IDR 106 trillion. So that compared to other tel-co companies, Telkom is still growing," he said.