2 Years As Minister, Erick Thohir Forms Many BUMN Holdings, What's The Goal?

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

JAKARTA - SOE Minister Erick Thohir is known to like to 'clean up' state-owned companies in order to increase efficiency. Erick has a vision that he will not form a super holding but a subholding containing the grouping of SOEs.

Since taking office at the end of 2019 until the end of November 2021, Erick has dissolved 70 state-owned companies. During this 2-year term, Erick has also formed at least five BUMN holdings grouped by sector or cluster.

Then what is the purpose of Erick choosing to form many BUMN holdings?

Erick said the establishment of a BUMN holding was not to create the hegemony of state-owned companies to cultivate a culture of bureaucratization. However, holding is seen as capable of neutralizing the market in times of turmoil.

For example, said Erick, the merger or merger of banking SOEs to facilitate financing for micro, small and medium enterprises (MSMEs). Then, the merger of companies in the food sector also encourages the integration of the food ecosystem to facilitate the interests of domestic farmers.

"This merger (Food SOEs) is nothing but a bureaucracy, in fact SOEs must be flexible, like our banking industry which can also face private and foreign companies losing to the market, the banking industry is very open. Indeed, the function of SOEs is nothing but a market balancer, and can also intervene in the market when his girlfriend is not good," said Erick, in a discussion, quoted on Tuesday, January 18.

As is known, the Ministry of SOEs is intensively consolidating a number of SOE clusters into each holding umbrella. The transformation step will be carried out until 2024.

This corporate action has been planned long ago or is included in the Medium-Term Development Plan (RPJM) of the Ministry of SOEs for 2020-2024. Later, there will be nine holdings that will be formed by Erick.

The nine BUMN holdings include Pharmaceutical Holding, Insurance, Survey Services, Food industry. Then, Holding Manufacturing Industry, Holding Defense BUMN, Holding Media Industry, Holding Port Services, Holding Transportation and Tourism Services.

Since taking office at the end of 2019, until now there have been five holdings formed by Erick Thohir and inaugurated. First, Ultra Micro BUMN Holding. This holding was officially launched in September 2021.

The establishment of the Ultra Micro BUMN Holding was marked by the signing of the transfer of state shares in PT Pegadaian, PT Permodalan Nasional Madani (PNM) to PT Bank Rakyat Indonesia Tbk (BRI).

Then, InJourney or the Tourism BUMN Holding and its Supporters was launched on January 13, 2022. Erick Thohir estimates that InJourney's total assets could reach Rp260 trillion in 2024.

The state-owned companies that are members of this holding include PT Angkasa Pura I (Persero), PT Angkasa Pura II (Persero), PT Hotel Indonesia Natour (Persero), PT Taman Wisata Candi Borobudur, Prambanan and Ratu Boko (Persero), and PT Sarinah (Persero).

Then recently, Erick formed ID Food or Food SOE Holding which was established in January this year. PT Rajawali Nusantara Indonesia (Persero) or RNI is set to be the parent of the food holding company.

This happened after the government through the Ministry of SOEs transferred the shares of five SOEs to RNI. As for the 5 SOEs in question, PT Indonesia Trading Company (Persero), PT Sang Hyang Seri, PT Perikanan Indonesia (Persero), PT Berdikari, and PT Garam to

Furthermore, the Pharmaceutical BUMN Holding which was established in February 2020. In its composition, PT Bio Farma is the holding company. The pharmaceutical BUMN holdings consist of PT Kimia Farma Tbk (KAEF), PT Indofarma Tbk (INAF), and PT Phapros Tbk (PEHA).

Then, Erick has also formed a Port BUMN Holding. The establishment of the Port BUMN Holding was marked by the merger of PT Pelindo I (Persero) to Pelindo IV. The merger was marked by the signing of the merger deed which was carried out in 2021.

Jokowi approves the establishment of BUMN holding

President Joko Widodo (Jokowi) has signaled that he will continue the plan to merge a number of State-Owned Enterprises (BUMN) into one holding company, known as holdingization.

Furthermore, Jokowi reasoned that with the holding of the state companies that joined in it had great power. According to him, this is more profitable than small companies with large numbers. Therefore, Jokowi wants other state-owned companies to form holdings.

"This is what we hope for other companies as well. Don't let it be scattered in small pieces, so that its strength becomes minimal, both in terms of financial capital. If you join like this the strength will be great," he said at the Inauguration of the Merger of Pelindo and Multifunction Terminal Wae Kelambu, quoted from the Setpres YouTube, Thursday, October 14.