Ministry Of Home Affairs Commits To Optimizing BUMD Management

Photo: Doc. Antara

JAKARTA - The Ministry of Home Affairs (Kemendagri) is committed to optimizing the management of Regional Owned Enterprises (BUMD) to accelerate regional economic growth.

Acting Director General of Regional Finance at the Ministry of Home Affairs Horas Maurits Panjaitan explained that BUMD as one of the public service channels must be able to provide optimal service to the community.

This is as mandated by Law (UU) Number 23 of 2014 concerning Regional Government and Government Regulation (PP) Number 54 of 2017 concerning BUMD.

"The goal of BUMD is very noble, which is to provide benefits for regional economic development," said Maurits, quoted from Antara.

Then, organize general benefits in the form of providing quality goods and/or services for the fulfillment of people's livelihoods according to the conditions, characteristics and potential of the region concerned based on good corporate governance. Next is obtaining profit and/or profit.

Maurits said the performance of BUMD services continues to increase as Indonesia's economic trends also increase.

Based on data from Bank Indonesia (BI), world economic growth is estimated to be better than the previous projections amidst the uncertainty of the financial market which is still high.

The global economy is estimated to grow by 3.1 percent (2023) and 3.0 percent (2024), higher than the previous projections of 3.0 percent and 2.8 percent, respectively.

"In the future, Bank Indonesia predicts that economic growth in 2024 will increase in the range of 4.7-5.5 percent," he said.

According to him, this prospect is influenced by the improvement in exports in line with the increase in world economic growth, and it is still better for domestic demand to be supported by the positive confidence of economic actors.

"With this projection, there is more potential and opportunity that can be done by economic actors including BUMD," explained Maurits.

One of the consequences of the implementation of regional autonomy is the growth of regional independence in almost all aspects of development.

Therefore, the role of BUMD must be optimized in order to provide benefits in increasing economic growth in the regions, improving services, carrying out development, and improving community welfare.

"Therefore, in this case, the Indonesian Ministry of Home Affairs has a strategic role as the axis of government and domestic politics to provide general guidance and supervision of the administration of regional governments nationally, especially the development of BUMD to support regional independence, improve public services and encourage economic strengthening in the regions," he added.

He also emphasized the importance of maintaining credibility, trust, the bearer of regional capital participation and good name.

BUMD needs to be aware of and mitigate risks in the insurance, bribery and gratification sector, fictitious credit, procurement of goods and services, as well as a fund placement fee in order to create a trusted, clean, and good corporate governance BUMD.

"I hope that we can continue and improve our joint commitment to make BUMD and restore its function as the locomotive of driving regional economic growth," said Maurits.

For information, until now the number of BUMDs in Indonesia has reached 1,056 business entities.

As for the details, BUMD Financial Institutions consist of 26 Regional Development Banks (BPD), 212 Regional Government-owned People's Credit Banks (Pemda), 360 Regional-Owned Enterprises for Drinking Water, 13 BUMD Agro, 17 Regional Credit Guarantees, 43 BUMD Migas, 28 BUMD Markets, 13 BUMD Tourism, 344 BUMDs for various other businesses.

Meanwhile, for the total amount of BUMD assets amounting to Rp899.3 trillion, the total equity is Rp236.5 trillion, the total profit is Rp29.5 trillion, and the amount of dividends is Rp13.02 trillion.

Then, for the number of directors as many as 1,907 people, the number of supervisory / commissioners is 1,990 people and the number of employees is 153,760 people.